Key Insights

The connected toys market, valued at $13.25 billion in 2025, is projected to experience robust growth, driven by several key factors. The increasing affordability of smartphones and tablets, coupled with the rising penetration of high-speed internet, has fueled the adoption of these interactive playthings. Parents are increasingly drawn to connected toys for their educational benefits, fostering creativity, problem-solving skills, and technological literacy in children. Furthermore, the integration of augmented reality (AR) and virtual reality (VR) technologies enhances the immersive and engaging nature of playtime, further boosting market demand. The market is segmented by type, with smartphone-connected toys holding a significant share due to their widespread accessibility. However, console and tablet-connected toys are also gaining traction, catering to different age groups and preferences. Major players like Mattel, Hasbro, and LEGO are actively investing in research and development, introducing innovative products featuring advanced functionalities and appealing designs. This competitive landscape drives innovation and expands market offerings. Geographic growth is expected to be diverse, with North America and Europe maintaining strong positions due to higher disposable incomes and technological advancement. However, Asia-Pacific is anticipated to witness significant growth potential, driven by rising middle-class populations and increasing internet penetration.

The market’s considerable compound annual growth rate (CAGR) of 21.63% from 2025 to 2033 signals substantial future expansion. However, potential restraints include concerns regarding data privacy and security related to the collection of children's data. Addressing these concerns through robust security measures and transparent data handling policies will be crucial for sustainable growth. Furthermore, the relatively high cost of some connected toys compared to traditional toys might limit their accessibility in certain markets. Nevertheless, continuous technological advancements, the development of more affordable products, and the growing awareness of the educational benefits of connected toys are likely to mitigate these challenges. The market's future trajectory is optimistic, promising considerable growth opportunities for established players and new entrants alike. Continuous innovation, strategic partnerships, and effective marketing strategies will be key to capitalizing on this expansive market.

Connected Toys Industry Market Report: 2019-2033

This comprehensive report provides a detailed analysis of the Connected Toys industry, covering market dynamics, growth trends, key players, and future outlook. With a focus on the parent market of toys and the child market of connected play experiences, this report offers invaluable insights for industry professionals, investors, and stakeholders. The study period spans from 2019 to 2033, with 2025 serving as both the base and estimated year. The forecast period covers 2025-2033, and the historical period encompasses 2019-2024. Expected market size values are presented in Million units.

Connected Toys Industry Market Dynamics & Structure

This section delves into the competitive landscape of the connected toys market, analyzing market concentration, technological advancements, regulatory frameworks, and market trends. The analysis considers factors influencing market structure, including mergers and acquisitions (M&A) activity. We explore the impact of substitute products, end-user demographics, and evolving technological landscapes. Market share data for key players will be provided.

• Market Concentration: The market exhibits a moderately concentrated structure, with key players such as Mattel, Hasbro, and LEGO holding significant shares. However, smaller players and new entrants are contributing to the increasing competitive intensity. xx% of the market is controlled by the top 5 players in 2025.
• Technological Innovation: Continuous advancements in areas such as AI, IoT, and AR/VR are driving innovation, creating opportunities for enhanced interactive experiences and personalized learning. Barriers to innovation include high R&D costs and the need for robust security measures.
• Regulatory Frameworks: Data privacy regulations (like GDPR and CCPA) and safety standards for children's products significantly influence market dynamics and create compliance challenges for companies.
• Competitive Product Substitutes: Traditional toys, video games, and other digital entertainment options pose competitive pressure.
• End-User Demographics: The primary target market comprises children aged 3-12, with increasing demand from parents seeking educational and engaging toys. Market segmentation by age group, income level, and geographic location is included.
• M&A Trends: The number of M&A deals in the connected toys industry from 2019 to 2024 was xx, driven by strategic acquisitions of smaller technology firms to enhance capabilities.

Connected Toys Industry Growth Trends & Insights

This section presents a comprehensive analysis of the connected toys market's growth trajectory, including historical data and future projections. We explore market size evolution, adoption rates, and market penetration. The impact of technological disruptions and evolving consumer behavior is examined using detailed qualitative and quantitative data. Data is provided on CAGR, adoption rates across different demographics, and future market potential. (Note: XXX refers to detailed data and models used to support this analysis, including statistical models and data from various sources).

The global connected toys market witnessed a substantial growth from xx million units in 2019 to xx million units in 2024, driven by factors such as increasing smartphone penetration, advancements in connectivity technologies, and a rising demand for educational and interactive toys. We project a CAGR of xx% during the forecast period (2025-2033), resulting in a market size of xx million units by 2033. Consumer behavior shifts, such as increased screen time among children and the growing adoption of smart devices, are influencing the market's growth.

Dominant Regions, Countries, or Segments in Connected Toys Industry

This section identifies the leading regions, countries, and segments (Smartphone Connected Toys, Console Connected Toys, Tablet Connected Toys) within the connected toys market. The analysis highlights key drivers contributing to regional dominance and explores market share and growth potential.

• Dominant Segment: Smartphone Connected Toys is projected to maintain its position as the dominant segment in 2025, accounting for xx% of the total market, due to widespread smartphone ownership.
• Leading Regions: North America and Europe are expected to be the leading regions in 2025, driven by high disposable incomes, robust technological infrastructure, and a greater adoption rate of connected toys. However, Asia-Pacific is showing significant growth potential.
• Key Drivers: Factors driving regional growth include rising disposable incomes, increasing smartphone penetration, supportive government policies promoting digital literacy, and robust e-commerce infrastructure. For example, government initiatives promoting STEM education are positively impacting the market in specific regions.

(Further details on market share, growth rates, and specific country breakdowns are included in the full report).

Connected Toys Industry Product Landscape

This section details product innovations, applications, and performance metrics within the connected toys industry. We will highlight unique selling propositions (USPs) and advancements in areas like AI, AR/VR integration, and improved connectivity features. The emphasis will be on the functionality and features that differentiate products and appeal to both children and parents.

Key Drivers, Barriers & Challenges in Connected Toys Industry

This section outlines the key factors driving and hindering growth in the connected toys industry. We will analyze both positive and negative aspects impacting market performance.

Key Drivers:

• Increasing adoption of smart devices and mobile internet.
• Growing demand for educational and interactive toys.
• Technological advancements like AI, AR/VR, and IoT integration.
• Parental willingness to spend on enhancing children's learning experiences.

Key Challenges:

• Concerns regarding data privacy and security.
• High manufacturing and R&D costs.
• Potential for technological obsolescence.
• Intense competition among industry players. For instance, price wars could negatively impact profit margins for some participants.

Emerging Opportunities in Connected Toys Industry

This section highlights emerging trends and untapped potential within the connected toys industry. We will discuss opportunities in new markets and innovative applications, adapting to changing consumer preferences.

• Expansion into developing markets with growing smartphone penetration.
• Development of toys incorporating personalized learning experiences.
• Integration of connected toys with educational curricula and platforms.
• Development of toys targeting specific age groups and interests (e.g., STEM toys for girls).

Growth Accelerators in the Connected Toys Industry

Long-term growth will be driven by technological breakthroughs such as more sophisticated AI integrations, allowing for increasingly personalized and adaptive play experiences. Strategic partnerships with educational institutions and content providers will expand market reach. Expansion into under-penetrated markets and the development of innovative product categories will be crucial in ensuring future growth.

Key Players Shaping the Connected Toys Industry Market

• Mattel Inc
• Hasbro Inc
• Anki inc
• LEGO System A/S
• Wonder Workshop Inc
• Sphero
• WowWee Group Limited
• Leka SAS
• Sony Corporation
• Bandai Namco Entertainment Inc

Notable Milestones in Connected Toys Industry Sector

• March 2023: The LEGO Group reported a significant profit increase, driven by strong demand, leading to increased production and the opening of 155 new stores.
• January 2022: LEGO discontinued its VIDIYO music-making toy line.

In-Depth Connected Toys Industry Market Outlook

The connected toys market shows strong potential for continued growth, driven by technological innovation, evolving consumer preferences, and expansion into new markets. Strategic partnerships, focusing on content integration and educational applications, will be key to success. The focus on safety and data privacy will remain paramount, creating opportunities for companies that prioritize these aspects. The market is expected to evolve beyond simple entertainment, offering personalized learning experiences and engaging educational content integrated within interactive play.

Connected Toys Industry Segmentation

• 1. Type
  • 1.1. Smartphone Connected Toys
  • 1.2. Console Connected Toys
  • 1.3. Tablet Connected Toys

Connected Toys Industry Segmentation By Geography

• 1. North America
• 2. Europe
• 3. Asia
• 4. Australia and New Zealand
• 5. Latin America
• 6. Middle East and Africa