Smart Toys Products Market Size, Share, & Trends Analysis Report (2023 – 2030)

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Report Overview

The global smart toys market was valued at USD 8.2 billion in 2022 and is expected to expand at a CAGR of 10.1% from 2023 to 2030. Smart toys are equipped with features such as embedded sensors and artificial intelligence (AI) to enable interactive experiences between users and toys. Growing demand for educational and interactive toys among children and parents, technological advancements, and increasing disposable income are some of the factors driving the market.

Smart toys are increasingly being used in children’s early development as well as for fun and entertainment purposes. For instance, in May 2021, Fisher-Price launched its new Smart Stages Educational Toy range, a range of interactive toys with adjustable levels of learning. The product range includes a scooter, a puppy, a turtle, and a car. Furthermore, the growing number of smart toy manufacturers is expected to have a positive impact on the market. For instance, in August 2021, UBTECH Robotics, a leading AI and humanoid robotics company, launched its new educational robot, the UBTECH Education Robot. The robot is designed to teach children the fundamentals of coding, robotics, and artificial intelligence (AI).

Rising disposable income and the increasing demand for education among children are some of the factors driving the market. Furthermore, the growing demand for toys with interactive features is expected to increase the demand for smart toys. For instance, in November 2021, Mattel launched a new interactive robotic toy, the Linkimals Smooth Moves Sloth. The toy is designed for babies aged 6 months and older and is equipped with a range of sensors, including motion detectors, light sensors, and touch sensors. Furthermore, the increasing popularity of remote-controlled toys is expected to boost the market growth.

The growing number of smart toy integrations with voice-enabled devices is expected to create lucrative opportunities for the market. For instance, in April 2021, Hasbro launched its new range of interactive toys, the Voice-Activated Interactive Toys. The toy range includes a robotic puppy, a robotic cat, and a robotic unicorn with features such as voice recognition and interactive games. Furthermore, the increasing demand for connected toys is expected to drive the market growth. For instance, in April 2021, VTech launched its new range of connected toys, the VTech Connected Toys, which are equipped with advanced features such as voice recognition, motion sensors, and interactive games.

Product Insights

The interactive segment accounted for the largest market share in 2022. Growing demand for interactive toys is driven by an increasing number of parents who purchase smart toys to keep their children engaged and educated. According to an article published by BBC, in February 2020, interactive toys are becoming increasingly popular, with sales rising by more than a third in 2019. Furthermore, the emergence of innovative technologies such as augmented reality (AR) and artificial intelligence (AI) are expected to create lucrative opportunities for the interactive toys market.

The educational segment is projected to expand at the fastest CAGR of 9.3% over the forecast period. Growing awareness regarding the importance of early education among parents is driving the demand for educational toys. According to an article published by Forbes, in March 2020, smart toys have the potential to provide a unique learning experience for children. In addition, the advancement of technology and increasing internet penetration are propelling the growth of the market for educational toys.

Distribution Channel Insights

The supermarkets & hypermarkets segment captured the major share of over 39.8% in 2022. Supermarkets & hypermarkets are a major sales channel for smart toys, where customers can physically see and experience the toys. The availability of various brands, discounts, and offers through supermarkets & hypermarkets are the major factors driving the segment. Moreover, the availability of a wide variety of products with different features attracts customers, which further increases the demand for smart toys in supermarkets & hypermarkets.

The online segment is expected to expand at the highest CAGR of 12.7% over the forecast period. The growing online retailing of smart toys is the major factor driving the segment. The emergence of online stores and e-commerce websites has made it easier for customers to compare prices and features of different products from multiple brands. Furthermore, the convenience of shopping from the comfort of home and attractive offers are the factors driving customers to purchase smart toys from online stores.

Type Insights

The smart toys segment accounted for the largest revenue share of 60.3% in the year 2022. The increasing popularity of smart toys among the young generation is driving the growth of this segment. Also, the introduction of futuristic software and hardware for toys is driving the demand for these products. For instance, in November 2020, Hasbro, Inc. introduced a new gaming platform for its LEGO series, which enables users to create virtual worlds and play with their LEGO toys. Furthermore, the increasing use of artificial intelligence (AI) and machine learning (ML) in toys is driving the demand for smart toys among consumers.

The traditional toys segment is anticipated to expand at the highest CAGR of 7.1% over the forecast period. This segment is driven by the increasing demand for traditional toys such as dolls, stuffed animals, and board games among the young generation. Also, the increasing demand for classic toys with traditional designs and shapes is driving the market for this segment. For instance, in April 2021, Hasbro, Inc. launched a series of classic toys such as Mr. Potato Head and Play-Doh.

Regional Insights

Asia Pacific is expected to dominate the market during the forecast period, due to the increasing adoption of smart toys products in countries such as China, India, Japan, and South Korea. Growing disposable income and rising demand for technologically advanced toys and gaming products are some of the key factors driving the growth of the market in this region. For instance, in April 2021, China-based technology and entertainment company, NetEase launched its new smart toy, ‘Eggs’, in the region.

North America is expected to witness the highest growth rate over the forecast period. This can be attributed to the increasing demand for technologically advanced toys and gaming products in the region. Moreover, the presence of prominent players such as Apple Inc., Samsung Electronics Co. Ltd., Microsoft, and Google LLC is further expected to boost the market growth. For instance, in June 2021, Apple Inc. announced the launch of its new smart toy, ‘Froggy’, in the U.S.

Financial Projections

In this part of the smart 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 smart toys products company. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a smart toys products business comes from the sale of the products. Here you will find a list with a description of each of the income streams and other possible sources of profit such as online sales, partnerships, and advertising.

Projecting Expenses
In this section, all the regular expenses related to keeping the smart toys products business running will be described. The list of operating expenses includes product development and prototyping, marketing, advertising, wages, maintenance and repairs, utilities, insurance policies, and others.

Key companies & market share insights

Some of the key companies operating in the smart toys products 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 May 2022, Mattel Inc. launched the AI-powered Barbie Learning System, designed to provide an interactive learning experience for children.

– In June 2022, Hasbro Inc. launched the AI-enabled My Little Pony interactive doll, designed to provide an interactive experience for children.

– In October 2022, Lego Group launched the AI-powered Lego Boost robot, designed to provide an interactive experience for children.

Some of the prominent players in the smart toys products market include:

– Mattel Inc.
– Hasbro Inc.
– Lego Group
– Spin Master Corp.
– Jakks Pacific, Inc.
– VTech Holdings Ltd.
– Tomy Company Ltd.
– LeapFrog Enterprises, Inc.
– Wonder Workshop, Inc.
– WowWee Group Limited

Global Smart 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 smart toys products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Electronic Toys
– Educational Toys
– Building & Construction Toys
– Infant & Pre-school Toys
– Outdoor & Sports Toys
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Connected Toys
– Non-connected Toys

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 Key Drivers of the Smart Toys Products Market?
[A]: The key drivers of the smart toys products market are increasing disposable income, the availability of advanced technologies, and the need for enhanced learning experiences. Furthermore, the increasing demand for educational toys and the growing popularity of connected learning solutions are expected to drive the growth of the smart toys products market.

[Q]: What are the Key Challenges Faced by the Smart Toys Products Market?
[A]: The key challenges faced by the smart toys products market include high cost, low battery life, security issues, and a lack of awareness among consumers. These challenges can impede the growth of the market.

[Q]: Which Region Presents the Largest Opportunity for Smart Toys Products?
[A]: The Asia Pacific region is expected to provide the largest opportunity for the smart toys products market due to the rise in population, increasing disposable income, and the availability of advanced technologies.

[Q]: What are the Major Strategies Adopted by Key Players in the Smart Toys Products Market?
[A]: The major strategies adopted by key players in the smart toys products market include product launches, partnerships, and mergers and acquisitions. Companies are launching new products to increase their market share and gain a competitive edge. Additionally, they are focusing on partnerships and collaborations to strengthen their presence in the market.

[Q]: What are the Future Trends of the Smart Toys Products Market?
[A]: The future trends of the smart toys products market include the introduction of artificial intelligence and machine learning in toys, the increasing adoption of STEM-based toys, and the increasing demand for interactive toys. Additionally, the increasing popularity of digital-based toys and the development of voice-enabled toys are expected to drive the growth of the market.

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Smart Toys Products Market Size, Share, & Trends Analysis Report (2023 – 2030)

Report Overview

The global smart toys market was valued at USD 8.2 billion in 2022 and is expected to expand at a CAGR of 10.1% from 2023 to 2030. Smart toys are equipped with features such as embedded sensors and artificial intelligence (AI) to enable interactive experiences between users and toys. Growing demand for educational and interactive toys among children and parents, technological advancements, and increasing disposable income are some of the factors driving the market.

Smart toys are increasingly being used in children’s early development as well as for fun and entertainment purposes. For instance, in May 2021, Fisher-Price launched its new Smart Stages Educational Toy range, a range of interactive toys with adjustable levels of learning. The product range includes a scooter, a puppy, a turtle, and a car. Furthermore, the growing number of smart toy manufacturers is expected to have a positive impact on the market. For instance, in August 2021, UBTECH Robotics, a leading AI and humanoid robotics company, launched its new educational robot, the UBTECH Education Robot. The robot is designed to teach children the fundamentals of coding, robotics, and artificial intelligence (AI).

Rising disposable income and the increasing demand for education among children are some of the factors driving the market. Furthermore, the growing demand for toys with interactive features is expected to increase the demand for smart toys. For instance, in November 2021, Mattel launched a new interactive robotic toy, the Linkimals Smooth Moves Sloth. The toy is designed for babies aged 6 months and older and is equipped with a range of sensors, including motion detectors, light sensors, and touch sensors. Furthermore, the increasing popularity of remote-controlled toys is expected to boost the market growth.

The growing number of smart toy integrations with voice-enabled devices is expected to create lucrative opportunities for the market. For instance, in April 2021, Hasbro launched its new range of interactive toys, the Voice-Activated Interactive Toys. The toy range includes a robotic puppy, a robotic cat, and a robotic unicorn with features such as voice recognition and interactive games. Furthermore, the increasing demand for connected toys is expected to drive the market growth. For instance, in April 2021, VTech launched its new range of connected toys, the VTech Connected Toys, which are equipped with advanced features such as voice recognition, motion sensors, and interactive games.

Product Insights

The interactive segment accounted for the largest market share in 2022. Growing demand for interactive toys is driven by an increasing number of parents who purchase smart toys to keep their children engaged and educated. According to an article published by BBC, in February 2020, interactive toys are becoming increasingly popular, with sales rising by more than a third in 2019. Furthermore, the emergence of innovative technologies such as augmented reality (AR) and artificial intelligence (AI) are expected to create lucrative opportunities for the interactive toys market.

The educational segment is projected to expand at the fastest CAGR of 9.3% over the forecast period. Growing awareness regarding the importance of early education among parents is driving the demand for educational toys. According to an article published by Forbes, in March 2020, smart toys have the potential to provide a unique learning experience for children. In addition, the advancement of technology and increasing internet penetration are propelling the growth of the market for educational toys.

Distribution Channel Insights

The supermarkets & hypermarkets segment captured the major share of over 39.8% in 2022. Supermarkets & hypermarkets are a major sales channel for smart toys, where customers can physically see and experience the toys. The availability of various brands, discounts, and offers through supermarkets & hypermarkets are the major factors driving the segment. Moreover, the availability of a wide variety of products with different features attracts customers, which further increases the demand for smart toys in supermarkets & hypermarkets.

The online segment is expected to expand at the highest CAGR of 12.7% over the forecast period. The growing online retailing of smart toys is the major factor driving the segment. The emergence of online stores and e-commerce websites has made it easier for customers to compare prices and features of different products from multiple brands. Furthermore, the convenience of shopping from the comfort of home and attractive offers are the factors driving customers to purchase smart toys from online stores.

Type Insights

The smart toys segment accounted for the largest revenue share of 60.3% in the year 2022. The increasing popularity of smart toys among the young generation is driving the growth of this segment. Also, the introduction of futuristic software and hardware for toys is driving the demand for these products. For instance, in November 2020, Hasbro, Inc. introduced a new gaming platform for its LEGO series, which enables users to create virtual worlds and play with their LEGO toys. Furthermore, the increasing use of artificial intelligence (AI) and machine learning (ML) in toys is driving the demand for smart toys among consumers.

The traditional toys segment is anticipated to expand at the highest CAGR of 7.1% over the forecast period. This segment is driven by the increasing demand for traditional toys such as dolls, stuffed animals, and board games among the young generation. Also, the increasing demand for classic toys with traditional designs and shapes is driving the market for this segment. For instance, in April 2021, Hasbro, Inc. launched a series of classic toys such as Mr. Potato Head and Play-Doh.

Regional Insights

Asia Pacific is expected to dominate the market during the forecast period, due to the increasing adoption of smart toys products in countries such as China, India, Japan, and South Korea. Growing disposable income and rising demand for technologically advanced toys and gaming products are some of the key factors driving the growth of the market in this region. For instance, in April 2021, China-based technology and entertainment company, NetEase launched its new smart toy, ‘Eggs’, in the region.

North America is expected to witness the highest growth rate over the forecast period. This can be attributed to the increasing demand for technologically advanced toys and gaming products in the region. Moreover, the presence of prominent players such as Apple Inc., Samsung Electronics Co. Ltd., Microsoft, and Google LLC is further expected to boost the market growth. For instance, in June 2021, Apple Inc. announced the launch of its new smart toy, ‘Froggy’, in the U.S.

Financial Projections

In this part of the smart 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 smart toys products company. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a smart toys products business comes from the sale of the products. Here you will find a list with a description of each of the income streams and other possible sources of profit such as online sales, partnerships, and advertising.

Projecting Expenses
In this section, all the regular expenses related to keeping the smart toys products business running will be described. The list of operating expenses includes product development and prototyping, marketing, advertising, wages, maintenance and repairs, utilities, insurance policies, and others.

Key companies & market share insights

Some of the key companies operating in the smart toys products 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 May 2022, Mattel Inc. launched the AI-powered Barbie Learning System, designed to provide an interactive learning experience for children.

– In June 2022, Hasbro Inc. launched the AI-enabled My Little Pony interactive doll, designed to provide an interactive experience for children.

– In October 2022, Lego Group launched the AI-powered Lego Boost robot, designed to provide an interactive experience for children.

Some of the prominent players in the smart toys products market include:

– Mattel Inc.
– Hasbro Inc.
– Lego Group
– Spin Master Corp.
– Jakks Pacific, Inc.
– VTech Holdings Ltd.
– Tomy Company Ltd.
– LeapFrog Enterprises, Inc.
– Wonder Workshop, Inc.
– WowWee Group Limited

Global Smart 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 smart toys products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Electronic Toys
– Educational Toys
– Building & Construction Toys
– Infant & Pre-school Toys
– Outdoor & Sports Toys
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Connected Toys
– Non-connected Toys

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

Frequently Asked Questions

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