PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1635058
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1635058
The global connected toys market is experiencing significant growth, with revenues projected to increase from an estimated $11.8 billion in 2024 to $39.7 billion by 2030, reflecting a compound annual growth rate (CAGR) of 22.4% during 2025-2030. This expansion is driven by a rising preference among children for interactive toys that offer multiple functions and connectivity. At the intersection of entertainment, education, and technology, connected toys are becoming increasingly popular, balancing innovation, safety, and educational value.
Key Insights
The integration of advanced technologies such as artificial intelligence (AI), augmented reality (AR), and voice recognition is propelling the connected toys market. These technologies enhance the interactivity and educational value of toys, making them more appealing to both children and parents.
The growing adoption of smartphones is a major trend impacting this market, as they offer a familiar and convenient control interface for many connected toys. Smartphones serve as connectivity hubs, facilitating data transfer and access to cloud-based servers, and enabling toy makers to deliver software upgrades, new features, and complementary applications through established app stores.
Social-emotional learning (SEL) is a key driver for the market. Connected toys that promote SEL help children develop the knowledge, attitudes, and skills necessary to understand and manage their emotions, set and achieve positive goals, and demonstrate empathy for others.
The education application category is expected to dominate the market, as parents and educators increasingly seek toys that offer educational value in addition to entertainment. Connected toys that gamify learning and provide personalized experiences are particularly appealing in this regard.
North America is currently the largest market for connected toys, attributed to high disposable incomes, technological advancements, and a strong emphasis on educational toys. However, the Asia-Pacific region is anticipated to exhibit the fastest growth during the forecast period, driven by increasing digital literacy, rising disposable incomes, and a growing demand for innovative educational tools.
The market is fragmented, with numerous players offering a wide range of products. Companies are focusing on innovation, quality, and strategic partnerships to gain a competitive edge. The increasing emphasis on digital literacy and the demand for personalized learning experiences present significant opportunities for market participants.