This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
Construction Toys Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
GET A FREE SAMPLE
Report Overview
The global construction toys market was valued at USD 37.0 billion in 2022 and is projected to expand at a CAGR of 8.1% from 2023 to 2030. Construction toys are gaining immense popularity among children due to the increasing focus on STEM (Science, Technology, Engineering, and Math) education. Construction toys help enhance problem-solving skills and cultivate creativity among children. They also assist with the development of motor skills, engineering skills, and help improve social skills. Furthermore, new technological advances in the construction toys such as the introduction of connected toys are expected to fuel the market growth during the forecast period.
The increasing popularity of subscription boxes is a major factor driving the market growth. Subscription boxes are proving to be lucrative for the toy industry as they provide kids with a variety of toys at regular intervals. They also provide a convenient way to receive toys at a discounted price. For instance, in April 2021, Lego launched a subscription box service, which provides a curated selection of Lego products, including instructions on how to build a model.
The growing demand for eco-friendly construction toys is also driving the market growth. Manufacturers are focusing on introducing eco-friendly construction toys made from sustainable and recyclable raw materials. For instance, in April 2021, Lego launched Lego Sustainable Materials Centre (SMC), which focuses on the research and development of sustainable materials for use in LEGO products. This move was taken to make all the Lego products from sustainable materials by 2030. Additionally, the growing focus on customization is expected to bolster the demand for construction toys. Customization enables customers to design a product according to their requirements.
The growing popularity of online retailing is significantly contributing to the market growth. Companies are focusing on introducing innovative features such as augmented reality and virtual reality to make the online shopping experience more engaging and interactive. Furthermore, the use of social media is gaining traction in the construction toys market. Companies are using social media platforms such as Facebook and Instagram to promote their products and engage with customers. This has resulted in increased sales of construction toys.
Product Insights
The building blocks segment accounted for the largest share of the construction toys market in 2022. Building blocks are one of the most popular construction toys, used to develop problem-solving skills in young children. The rising trend of STEM (science, technology, engineering, and mathematics) education is expected to boost the demand for construction toys, as these toys are used to teach children about science, engineering, and mathematics. In addition, the increasing availability of various learning resources and gaming apps on the internet is likely to propel the demand for construction toys in the coming years.
The figurines segment is expected to register a CAGR of 8.1% over the forecast period. Figurines are popular among children, as they provide an opportunity for imaginative play. Increasing demand for construction toys that develop skills such as creativity, problem-solving, and emotional intelligence is expected to drive the demand for construction toys in the coming years. In addition, the increasing popularity of superhero and cartoon characters among children is expected to drive the demand for figurines.
Distribution Channel Insights
The supermarkets & hypermarkets segment accounted for the major share of the global construction toys market in 2022. The segment is anticipated to expand at a significant CAGR during the forecast period. Supermarkets & hypermarkets have a wide range of construction toy products from various brands available for customers to compare and purchase. Moreover, these establishments are located in the vicinity of residential areas and are easily accessible to customers. Furthermore, supermarkets & hypermarkets also offer discounts and promotions on construction toys to attract more customers.
The online segment is anticipated to expand at the highest CAGR of 14.7% from 2022 to 2028. E-commerce websites offer customers a wide range of construction toy products from various brands. Furthermore, customers can compare construction toys available on various e-commerce websites and select the best product for purchase. Moreover, online platforms provide discounts and promotional offers on construction toys, which attract more customers.
Type Insights
The educational segment accounted for the largest share in the construction toys market in 2022. Increasing awareness about the importance of early education among parents and rising disposable income are the major factors driving the growth of this segment. Government initiatives for improving the education system and increasing the number of schools and educational institutions are also boosting the demand for construction toys.
The recreational segment is anticipated to register the highest CAGR over the forecast period. This is attributed to the increasing number of entertainment parks, amusement parks, and recreation centers, which offer various recreational activities to people. The availability of a wide range of construction toys which are specifically designed for recreational purposes is also driving the growth of this segment. For instance, LEGO Group, a leading construction toys manufacturer, offers a wide range of construction toys such as LEGO CITY and LEGO Star Wars, which are designed for recreational purpose.
Regional Insights
Asia Pacific is the largest market for construction toys, accounting for the highest revenue share of 33.6% in 2022. This growth is mainly driven by the presence of a large population, rising disposable income, and rising awareness of the importance of children’s playtime. In addition, the growing demand for creative playtime toys and the increasing popularity of STEM-based learning toys are further contributing to the growth of the construction toy market in the region.
Europe is expected to be the second-largest market during the forecast period. The growing popularity of STEM-related toys and the presence of manufacturers offering a variety of products are some of the major factors driving the market in the region. For instance, in July 2021, British company Laser Pegs launched its first construction toy in the region.
North America is expected to witness significant growth in the coming years. The increasing popularity of STEM learning toys and the presence of major market players are some of the major factors driving the construction toy market in the region. Additionally, the growing popularity of DIY projects and the increasing disposable incomes of consumers are also contributing to the growth of the market in the region.
Financial Projections
In this part of the construction toys products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your construction toys products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a construction toys products business comes from sales of the toys, sponsorship, and licensing of the products. Here you will find a list with a description of each of them and other possible sources of profit such as discounts, commissions, and other promotional activities.
Projecting Expenses
In this section, all the regular expenses related to keeping the construction toys business running will be described. The list of operating expenses includes manufacturing costs, packaging costs, shipping costs, wages, advertising and marketing expenses, insurance policies, rent costs, and others.
Key companies & market share insights
Some of the key companies operating in the construction toys market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Lego Group launched the Lego Technic Street Motorcycle, a new set of construction toys designed to provide a more engaging and realistic building experience.
– In August 2022, Mattel Inc. launched the Hot Wheels Construction Set, a set of construction toys designed to stimulate children’s creativity and imagination.
– In October 2022, Hasbro launched the Nerf Construction Set, a set of construction toys designed for children to build and customize their own blaster.
Some of the prominent players in the construction toys market include:
– Lego Group
– Mattel Inc.
– Hasbro Inc.
– Fisher-Price
– Goliath
– Ravensburger
– Spin Master
– K’NEX Brands
– Playmobil
– Mega Bloks
Global Construction Toys Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global construction toys products market based on product, distribution channel, age group, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Building Blocks
– Construction Sets
– LEGO
– Stacking Blocks
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
– Others
3. Age Group Outlook (Revenue, USD Million, 2017 – 2030)
– 0-5 Years
– 6-12 Years
– 13-18 Years
– 18+ Years
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Factors Driving the Construction Toys Market?
[A]: The growing demand for construction toys is being driven by the growing consumer interest in STEM (science, technology, engineering, and mathematics) education, increasing disposable incomes, and the availability of construction toys in different varieties. Additionally, the rising preference for educational toys, the increasing demand for construction toys with advanced features, the rise in digital gaming, and the evolving consumer preferences for eco-friendly construction toys are also driving the market.
[Q]: What are the Major Opportunities for the Construction Toys Market?
[A]: The construction toys market is anticipated to benefit from the growing demand for construction toys from the emerging economies, the increasing focus on eco-friendly toys, and the rise in online purchases. Additionally, the increasing number of construction toy companies offering innovative products and the growing popularity of robotics and AI-based construction toys are expected to create major opportunities for the construction toys market.
[Q]: Who are the Major Players in the Construction Toys Market?
[A]: Major players in the Construction Toys Market are LEGO A/S, Mattel Inc., Hasbro, Inc., Ravensburger, Spin Master Corp., PlayMonster LLC, K’NEX Brands, BanBao, PlayGo, and Ravensburger.
[Q]: What are the Growth Strategies Adopted by the Companies?
[A]: Companies are increasingly focusing on product innovation and expansion of their product portfolios in order to gain a competitive edge in the Construction Toys Market. Additionally, companies are also focusing on strategic collaborations, investments in research and development, and marketing initiatives to increase their presence in the global market.
[Q]: What is the Potential of Product Innovation?
[A]: Product innovation is a key factor driving the growth of the Construction Toys Market. Companies are introducing new construction toys with advanced features such as robotics and AI-based construction sets. Additionally, the introduction of innovative designs, colors, and shapes is expected to increase the demand for construction toys among consumers.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
To request a free sample copy of this report, please complete the form below.
We value your investment and offer free customization with every report to fulfil your exact research needs.
