San Francisco, 08 April 2024: The Report Smart Toys Market Size, Share & Trends Analysis Report By Product (Interactive Games, Robots, Educational Toys), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2021 - 2028

The global smart toys market size is expected to reach USD 34.13 billion by 2028, based on a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 16.5% from 2021 to 2028. The rise in disposable income, coupled with the growing demand for coding skills, is fueling the growth of the market. The growing importance of coding and STEM learning in schools and other organizations is propelling the demand for smart toys. The use of educational robots in classrooms for storytelling and play-to-learn interactive tablet toys help in delivering superior gaming and learning experience to students and players.

Key players in the market are utilizing TV media and famous cartoon characters to capitalize on branded content to improve the entertainment value. The inclusion of social media and OTT platforms provides companies in the market to garner a larger consumer base in the market. Dora the Explorer and Sesame Street are some of the famous cartoons that are interactive.

Further, key players like Mattel Inc. and Hasbro Inc. have reported an increase of 4% increase in revenue in the last quarter of 2020. The lockdown orders in several parts of the world led to the majority of time spent with family, thereby increasing the sales of board games and cards. Companies in the market optimized the use of online retailing by providing discounts and offers to consumers to increase revenue. For instance, as per Spielwarenmesse, a fair organizer has reported that several independent retailers during the pandemic shifted to online operations to survive during the pandemic.

A rise in the middle-class population, coupled with the rising smartphone penetration, is a major factor fueling the market growth in the forecast period. Furthermore, the increasing awareness regarding smart toys through tablets, smartphones, and social media platforms is encouraging customers to adopt technology-led toys.

The Covid-19 pandemic has impacted the toy industry owing to the rising cases and disruption in the supply chain. Additionally, labor restraints impacted the demand for smart toys in the early months of the pandemic. During the pandemic, the support of social media platforms and the influence of the TV and media industry supported the industry growth.

Key players like Hasbro are introducing television series and videos based on famous movies such as Frozen and Mulan. Key players in the industry are increasing the adoption of e-commerce and social media platforms to expand their consumer base. The growing importance of education-based learning is acting as an opportunity for key players to introduce learning toys equipped with technologies such as IoT and Artificial Intelligence (AI). 

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Key players operating in the smart toys industry have also optimized the use of online retailing by providing discounts and offers to consumers to increase revenue. For instance, as per Spielwarenmesse, a fair organizer has reported that several independent retailers during the pandemic shifted to online operations to survive during the pandemic.

Smart Toys Market Report Highlights

• Based on product, the interactive games segment held the largest revenue share in 2020 due to the increasing internet penetration worldwide
• In terms of distribution channel, the offline segment held the largest revenue share in 2020 owing to the large presence of local manufactures and toy producers
• In 2020, North America held the largest revenue share owing to the increasing disposable income and rising demand for educational toys in classrooms
• Asia Pacific is anticipated to witness the fastest growth from 2021 to 2028. Rapid urbanization, rise in flexible income, and a promising demographic base are increasing the demand for toys in the region

The interactive games segment held the largest revenue share of over 85.0% in 2020 owing to the growth of edutainment services, coupled with high smartphone penetration. Interactive games are a fun way to learn and explore creative knowledge in a new way. Interactive games challenge players to solve puzzles in a virtual setting. These games can also be used in preschool learning for understanding letters and alphabets. Additionally, The Lego Group offers LEGO dimensions, which use NFC technology to interact with players.

The educational robots segment is anticipated to expand at the fastest CAGR over the forecast period. Smart robot toys are useful for boosting creativity, problem-solving ability, communication, and teamwork. These robots are usually operated through remote control or can be operated through a smartphone or a tablet. Key players in the market are introducing robots that are compatible either through Android or iOS devices.

Smart Toys Market Report Scope

List of Key Players of Smart Toys Market

• Playmobil
• Pillar Learning
• Sega Toys Co. Ltd.
• LeapFrog Enterprises Inc.
• Mattel Inc.
• Hasbro Inc.
• Lego System A/S
• Robofi LLC
• Tomy Co. Ltd.
• Doctor's Associates Inc.