The global Connected Toys Market is projected to grow
from USD 9.3 billion in 2023 to USD 24.1 billion by 2028, registering a
strong CAGR of 20.7% during the forecast period. The market is being
driven by increasing demand for interactive and educational toys, growing
adoption of smartphones and smart devices among children and parents, rapid
advancements in IoT and AI technologies, and rising consumer interest in
personalized and immersive play experiences.
Market Size & Forecast
• 2023 Market Size: USD 9.3 billion
• 2028 Projected Market Size: USD 24.1 billion
• CAGR (2023–2028): 20.7%
• North America: Largest market in 2023
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Report of Connected Toys Market
Key Market Trends & Insights
• North America accounted for the largest share of the
connected toys market in 2023.
• By technology, Bluetooth-enabled toys represented a significant
revenue-generating segment.
• By type, app-connected toys continue to witness strong consumer adoption.
• Educational and STEM-focused connected toys are among the fastest-growing
application categories.
• Online retail remains the leading distribution channel due to wider product
availability and increasing digital purchasing behavior.
• AI-powered toys and voice-interactive toys are emerging as high-growth
segments within the market.
The connected toys industry is experiencing substantial
growth as toy manufacturers increasingly integrate digital technologies into
traditional play experiences. Connected toys leverage internet connectivity,
mobile applications, artificial intelligence, sensors, and cloud-based
platforms to create interactive, educational, and personalized experiences for
children. These products are transforming the toy industry by combining
physical play with digital engagement and learning opportunities.
Growing investments in smart toy development, digital
learning technologies, and child-focused AI applications are accelerating
market expansion. Parents are increasingly seeking toys that combine
entertainment with educational value, while children are becoming more
comfortable interacting with connected devices from an early age. This shift is
creating significant opportunities for manufacturers to develop innovative
products that enhance cognitive, social, and creative development.
One of the most significant trends shaping the market is the
growing adoption of STEM-based connected toys. Robotics kits, coding toys,
programmable learning platforms, and AI-powered educational companions are
gaining popularity among parents and educators seeking to improve science,
technology, engineering, and mathematics learning outcomes. These toys provide
hands-on learning experiences while maintaining high levels of engagement and
entertainment.
The market is also witnessing increasing integration of
artificial intelligence, augmented reality (AR), and virtual reality (VR)
capabilities. These technologies enable toys to deliver adaptive learning
experiences, voice interaction, emotional recognition, personalized content,
and immersive gameplay. As AI capabilities continue to improve, connected toys
are becoming more intelligent, responsive, and capable of supporting long-term
engagement.
At its core, connected toy technology combines IoT
connectivity, cloud computing, mobile applications, sensors, wireless
communication technologies, and artificial intelligence. Modern connected toys
can interact with smartphones and tablets, respond to voice commands, track
learning progress, provide personalized feedback, and connect children to
digital content ecosystems that extend play beyond physical products.
A major growth driver for the market is the widespread
adoption of smartphones and tablets. Companion applications enable toy
manufacturers to offer software updates, personalized experiences, interactive
content, and parental control features that significantly enhance product
value. Parents are increasingly attracted to connected toys that provide
educational benefits while allowing monitoring and customization of children's
activities.
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Toys Market — Request Sample Report
The rapid growth of IoT and AI technologies has
significantly expanded the capabilities of connected toys. Manufacturers are
increasingly developing toys that can learn from user interactions, adapt to
individual preferences, and deliver personalized educational experiences.
Additionally, partnerships between toy companies, technology providers, and
content creators are fostering innovation and enabling richer digital
ecosystems around connected products.
Looking ahead, the connected toys market is expected to
witness strong growth driven by advances in AI-powered play experiences,
voice-enabled interaction, educational robotics, AR/VR integration, and smart
learning technologies. As parents continue to prioritize educational
development and personalized learning, connected toys are expected to become an
increasingly important segment of the global toy industry.
Key Connected Toys Company Insights
Some of the leading companies operating in the connected
toys market include major toy manufacturers and technology-driven toy
innovators focused on smart play experiences and educational technologies.
Key Connected Toys Companies
• Hasbro
• Mattel
• Sony Corporation
• Spin Master
• The LEGO Group
• Sphero
• UBTECH Robotics
• VTech Electronics
• Wonder Workshop
• WowWee Group
Recent Developments
• Growing demand for STEM-focused and coding-based connected
toys is encouraging manufacturers to expand educational product portfolios.
• AI-powered connected toys featuring adaptive learning and voice interaction
capabilities are witnessing increased adoption.
• Toy manufacturers are integrating AR and VR technologies to create immersive
and interactive play experiences.
• Strategic collaborations between toy companies and technology providers are
accelerating innovation in smart toy ecosystems.
Regional Insights
North America to Lead the Connected Toys Market
North America is expected to maintain its leading position
in the connected toys market due to high consumer spending on educational and
entertainment products, widespread adoption of connected devices, strong
technological infrastructure, and the presence of major toy manufacturers and
technology companies. The region continues to benefit from high awareness of
STEM education, increasing acceptance of AI-powered learning tools, and strong
demand for innovative smart toys. Furthermore, ongoing investments in digital
learning and child-focused technology solutions are expected to support
continued market leadership throughout the forecast period.
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