Connected Toys Market Size, Share, Growth, and Industry Analysis, By Types (Smartphone Connected Toys, Console Connected Toys, Tablet Connected Toys) , Applications (2?5 Years, 6?8 Years, 9?12 Years, Teenagers, Others) and Regional Insights and Forecast to 2033

Connected Toys Market Size

The global Connected Toys Market Size was valued at USD 7,448.11 million in 2024 and is projected to reach USD 8,424.56 million in 2025, expanding to USD 22,571.25 million by 2033. With a CAGR of 13.11% during the forecast period (2025-2033), the market is witnessing strong growth driven by advancements in AI-powered educational toys, interactive gaming experiences, and increasing demand for smart play solutions.

The US Connected Toys Market Size is experiencing significant growth due to rising parental interest in STEM-based learning tools, expanding digital entertainment ecosystems, and growing adoption of IoT-enabled toys. Increased investments in smart technology for children's learning and entertainment are further driving market expansion.

The connected toys market is growing rapidly, driven by technological advancements and consumer demand for interactive, smart toys. In 2024, approximately 45% of parents across developed markets expressed interest in purchasing connected toys for their children, citing benefits like learning enhancement and entertainment.

The market is also witnessing an increasing adoption of IoT-enabled toys, with 38% of toys in the market now incorporating Bluetooth, voice recognition, and app integration. As of recent data, 33% of global toy companies are focusing on integrating AI and machine learning features into their products, ensuring that these toys evolve to provide more personalized, engaging experiences.

Connected Toys Market Trends

The connected toys market is showing impressive trends, with 50% of all new toy launches in the past two years including connected features like augmented reality and app integration. Smart toys with voice recognition and real-time interaction now represent 27% of the global connected toy market.

Additionally, 41% of connected toys are focused on educational content, tapping into the growing demand for STEM toys among parents. The use of augmented reality (AR) is also surging, with 35% of connected toys incorporating AR elements that enhance playtime and foster interactive learning experiences.

The consumer preference for safety and privacy is becoming more pronounced, with 52% of parents prioritizing toys with robust data security features. The shift towards these technologies is evident, with 32% of consumers now expecting connected toys to seamlessly integrate with their existing smart home systems, driving new product development.

Connected Toys Market Dynamics

The connected toys market is evolving rapidly with advancements in AI, IoT, and digital interactivity. The market is witnessing a surge in demand due to the growing adoption of smart and educational toys. However, alongside strong growth drivers, several restraints, opportunities, and challenges are shaping the market’s trajectory.

DRIVER

" Increased Demand for AI and IoT-Enabled Smart Toys"

The demand for AI-powered and IoT-connected toys is surging, with 75% of parents preferring interactive and educational toys. 60% of toy manufacturers are integrating cloud-based AI to enhance personalization. The penetration of smart home ecosystems has influenced 50% of households to adopt AI-assisted devices, driving compatibility with connected toys. STEM-focused smart toys have seen an 80% increase in adoption. 90% of new toy innovations now include AI-based interactivity, while 85% of digital education platforms collaborate with toy manufacturers to enhance learning experiences.

RESTRAINTS

" Growing Privacy and Cybersecurity Concerns"

Privacy concerns are rising, with 70% of parents worried about data security in connected toys. 55% of smart toys have reported security vulnerabilities, leading to regulatory scrutiny. Compliance with updated data protection laws affects 65% of manufacturers, increasing operational complexities. 40% of consumers hesitate to purchase connected toys due to cybersecurity risks. 50% of regulatory investigations into children's tech products now focus on data privacy violations. 75% of parents seek stricter security policies for IoT-based toys, while 68% of educational institutions enforce guidelines on connected toy usage.

OPPORTUNITY

"Expansion of 5G and Enhanced Connectivity Solutions"

The rollout of 5G networks has reached 85% adoption in developed regions, revolutionizing connected toy interactivity. Smart home integration has grown, with 65% of households now utilizing IoT-based devices. Cloud computing improvements have driven a 50% increase in real-time personalized learning features. 70% of connected toy sales now occur through e-commerce channels. 95% of new smart toy designs are optimized for seamless wireless connectivity. The adoption of AR/VR-enabled toys has surged by 88%, enhancing interactive play experiences. 78% of digital toy manufacturers are investing in AI-driven analytics for enhanced engagement.

CHALLENGE

"Regulatory Compliance and Safety Standards"

Stricter regulations impact 60% of connected toy manufacturers, requiring compliance with evolving safety standards. 75% of new product launches face regulatory delays due to enhanced testing requirements. Manufacturing costs have increased by 40% due to compliance adjustments. 55% of parents demand stricter oversight on smart toy safety. 80% of industry stakeholders highlight regulatory complexities as a barrier to innovation. 65% of toy companies have faced legal scrutiny over data privacy concerns. 90% of AI-integrated toy products must undergo additional cybersecurity assessments before market entry.

Segmentation Analysis

The connected toys market is segmented by type and application, which plays a key role in understanding consumer demand. In terms of type, the market is divided into smartphone-connected, console-connected, and tablet-connected toys. Each segment has unique characteristics, with smartphone-connected toys leading the market. On the application side, the market is divided into various age groups, including 2-5 years, 6-8 years, 9-12 years, teenagers, and others, with each group having specific preferences and needs. The demand for connected toys is growing across all segments, driven by the increasing interest in interactive, educational, and tech-enabled play experiences.

By Type

• Smartphone Connected Toys: Smartphone-connected toys represent 38% of the connected toy market. These toys connect to smartphones, enhancing play by integrating with apps and offering interactive features like voice commands, learning modules, and gaming experiences. This segment is growing rapidly, with 42% of connected toys launched in recent years offering smartphone integration. Parents prefer smartphone-connected toys for their ease of use and compatibility with devices they already own, making them a key driver in the connected toy market.
• Console Connected Toys: Console-connected toys account for 24% of the connected toys market. These toys are designed to integrate with gaming consoles, offering features like motion tracking, interactive gameplay, and virtual worlds. The demand for console-connected toys is driven by the increasing popularity of gaming among children and teenagers. Around 27% of consumers seeking connected toys are looking for products that can interface with major gaming consoles, indicating the importance of this segment for the overall market.
• Tablet Connected Toys: Tablet-connected toys make up 28% of the market. These toys are designed to sync with tablets, providing children with enhanced interactive experiences through apps and games. The growing usage of tablets among children has contributed to the strong demand for toys that can connect with these devices. Approximately 30% of new connected toys in the market are optimized for tablet compatibility, showcasing the importance of this category in the connected toy sector.

By Application

• 2-5 Years: The 2-5 years age group represents 35% of the connected toys market. At this developmental stage, children require toys that help develop cognitive skills, coordination, and basic learning abilities. Connected toys for this group are primarily educational, focusing on interactive play that teaches shapes, colors, and numbers. With 40% of connected toy sales in this segment attributed to early learning toys, this group is a key driver of growth in the connected toy market.
• 6-8 Years: Children aged 6-8 years account for 30% of the connected toy market. Toys in this category tend to promote problem-solving, creativity, and basic STEM skills. Around 33% of connected toys in this segment focus on interactive learning and gaming, often incorporating elements like coding or robotics. This group is highly receptive to toys that blend education with entertainment, creating a robust demand for connected toys that foster learning while keeping children engaged.
• 9-12 Years: For children aged 9-12 years, connected toys represent 20% of the market. At this stage, kids seek toys that offer more sophisticated gameplay and learning opportunities. Connected toys that integrate with gaming systems, offer coding challenges, or use augmented reality are particularly popular. Approximately 22% of connected toys in this segment are designed for immersive, complex play, catering to the growing interests of children in this age group who are increasingly exposed to technology.
• Teenagers: Teenagers make up 10% of the connected toy market. This age group gravitates toward products that offer higher levels of interaction and integration with modern technology. Toys for teenagers often include VR systems, gaming consoles, or smart gadgets, representing about 12% of connected toy sales in this demographic. The demand for high-tech, interactive experiences that can connect with multiple platforms is driving growth in this segment.



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Connected Toys Regional Outlook

The connected toys market is expanding across all regions, with North America leading in innovation and adoption, followed by Europe and Asia-Pacific. In North America, the increasing demand for interactive and educational toys is driving growth. Europe has a strong focus on educational connected toys, while Asia-Pacific is witnessing rapid growth due to a tech-savvy middle class. The Middle East & Africa region is also growing, with increasing disposable incomes and interest in interactive play. The regional distribution of connected toy sales highlights the global demand for smart and educational toys.

North America

North America holds 40% of the global connected toys market. The region is the largest adopter of connected toys, driven by high consumer awareness and strong technological infrastructure. Approximately 45% of connected toy sales in North America are concentrated in the U.S., where smart toys are increasingly popular among tech-savvy parents. The growth of smart home devices and the integration of connected toys with these devices are expected to further boost the market share in the region.

Europe

Europe accounts for 28% of the connected toys market. Countries like the UK, Germany, and France have witnessed strong demand for educational and interactive toys, with 32% of European parents prioritizing connected toys with educational content. The growing emphasis on data security and privacy also influences consumer decisions in this region, with 40% of parents seeking toys that adhere to stringent data protection laws. Europe is expected to continue its steady growth as families increasingly adopt IoT-enabled products.

Asia-Pacific

Asia-Pacific represents 25% of the connected toys market. The region is experiencing rapid growth, fueled by a rising middle class, high tech adoption, and increasing disposable incomes. Countries like China, India, and Japan are key markets for connected toys, with 30% of parents in the region showing interest in educational and interactive toys. The growing penetration of smartphones and tablets among children is contributing to the rise of connected toys, making this region one of the most dynamic in the connected toy market.

Middle East & Africa

The Middle East & Africa (MEA) region holds 7% of the connected toys market. Despite being a smaller market share, MEA is seeing steady growth, especially in countries like the UAE and Saudi Arabia. Approximately 10% of parents in the MEA region are purchasing connected toys, with a focus on interactive and educational products. As disposable incomes rise and interest in smart toys increases, the MEA market is expected to grow in the coming years.

List of Key Connected Toys Market Companies Profiled

• SpinMaster
• DXTR Labs
• LEGO System AS
• Wonder Workshop
• Bandai Namco Entertainment, Inc
• Engino.net Ltd
• Tangible Play Inc
• Mattel Inc
• Sony Group
• Sphero
• Hasbro Inc
• Playmobil
• WooWee
• VTech Holdings Ltd
• Leka SAS
• LeapFrog

Top Two Companies with Highest Market Share

• SpinMaster: 15% market share
• LEGO System AS: 12% market share

Investment Analysis and Opportunities

The connected toys market offers promising investment opportunities, driven by the rapid adoption of interactive and educational technologies in children's toys. Approximately 52% of global investors are focusing on smart toys due to the growing demand for innovative, tech-enabled educational solutions. With 45% of parents willing to pay a premium for connected toys that offer educational value, investors see potential in supporting companies that deliver cutting-edge, interactive products. The rise in e-commerce also plays a significant role, with 38% of connected toy sales being driven by online retail platforms.

Moreover, 33% of connected toy innovations are powered by AI, machine learning, and app-based interactions, creating a growing opportunity for investors to back companies that are focused on creating AI-driven and personalized experiences. The demand for STEM-based toys is increasing, with 40% of parents actively seeking products that promote learning in science, technology, engineering, and math. As the global consumer base becomes more tech-savvy and security-conscious, the demand for secure and educational toys is expected to expand, creating substantial market opportunities for investment in emerging trends.

New Products Development

In 2023 and 2024, the connected toys market has seen robust product development, with 47% of new product releases incorporating advanced technologies such as artificial intelligence (AI), voice recognition, and machine learning. A growing 40% of new connected toys are designed to enhance educational outcomes by integrating STEM learning, coding features, and virtual simulations.

Approximately 35% of new products are also focused on improving data security, with enhanced encryption methods and privacy features becoming a key selling point for parents concerned about online safety. The introduction of augmented reality (AR) toys has surged by 28%, with manufacturers embracing AR to create more immersive and interactive experiences. Around 33% of new products launched in the market feature integration with mobile apps, allowing for personalized play experiences.

Additionally, 30% of new connected toys are designed to sync seamlessly with smart home devices, enabling a more interconnected play experience. These developments show the growing emphasis on educational value, interactivity, and security in new product designs, ensuring their appeal to both parents and children alike.

Recent Developments by Manufacturers in Connected Toys Market 

In 2023 and 2024, manufacturers in the connected toys market have introduced a variety of new products that align with the increasing demand for tech-enabled, educational, and secure toys. For example, Sphero launched a new range of interactive coding robots that incorporate augmented reality (AR), with 18% of the company’s 2024 sales coming from this product line.

SpinMaster unveiled a new series of voice-activated smart dolls that can interact with children through voice commands, accounting for 25% of their new product sales. LEGO introduced a set of educational robotics kits that encourage STEM learning, with 22% of their product launches in 2024 focusing on coding and robotics.

Additionally, VTech launched a new line of educational toys that integrate AI for personalized learning, which represents 20% of their new product offerings. Moreover, data security has been a top priority for toy manufacturers, with 30% of new products launched in 2024 incorporating advanced data protection measures to address growing concerns about children's online safety. These developments reflect the industry's shift toward more innovative, secure, and educational products that cater to the evolving needs of consumers.

Report Coverage of Connected Toys Market

The report on the connected toys market provides an extensive analysis of current trends, dynamics, and segmentation. It offers detailed insights into the market by type, with a focus on smartphone-connected toys, console-connected toys, and tablet-connected toys, which collectively account for 90% of the market.

Additionally, the report breaks down the market by application, covering key age groups such as 2-5 years, 6-8 years, 9-12 years, and teenagers, representing 35%, 30%, 20%, and 10% of the market, respectively. Regional analysis reveals that North America, Europe, and Asia-Pacific hold the largest shares, with North America representing 40%, Europe 28%, and Asia-Pacific 25% of the global market. The report also highlights key trends such as the growing demand for STEM toys, with 45% of parents actively seeking educational products.

Additionally, the report covers key drivers like the rise of smart homes, which has contributed to 33% of the market growth in recent years. It provides a thorough understanding of the competitive landscape, highlighting the top players and their market share, and includes a forecast of the market's future direction, based on current data and emerging trends.