Smart Toys Market Size (2025 – 2030)

The Smart Toys Market was valued at USD 13.57 Billion in 2024 and is projected to reach a market size of USD 27.16 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 12.26%.

A smart toy refers to an advanced interactive plaything that incorporates technologies like artificial intelligence (AI), sensors, and connectivity options to deliver a dynamic user experience. These toys are capable of adapting, reacting to, and engaging with children in real time. Often integrated with mobile applications or internet connectivity, smart toys can receive updates and offer extended features for improved functionality.

Key Market Insights:

High-end connected experiences driven by edge AI and 5G technology are contributing to increased average selling prices. At the same time, subscription-based content enhancements are extending product longevity and stabilizing revenue flows. Collaborative efforts between traditional toy manufacturers and providers of cloud or AI solutions are accelerating the pace of innovation. Additionally, private-label strategies from retailers are altering the dynamics of supply-chain negotiations. Regionally, North America continues to lead due to strong disposable incomes and widespread adoption of educational technology. Nonetheless, the Asia-Pacific region is witnessing the fastest growth, driven by government-led initiatives that incorporate hands-on robotics into STEM education curricula.

Market Drivers:

Increasing Interest in Interactive and Educational Toys Fuels Market Expansion.

With a growing emphasis among parents on enriching children's educational experiences, toys that blend learning with entertainment are gaining substantial traction. A key growth driver is the incorporation of AI into smart toys. These AI-enabled products can adapt based on user interaction, offering tailored and dynamic experiences for children. This level of personalization significantly enhances engagement and play value by making toys more responsive and immersive.

Furthermore, the heightened focus on STEM (Science, Technology, Engineering, and Mathematics) education is accelerating market development. Parents and educators are increasingly prioritizing early exposure to STEM principles, and smart toys serve as effective tools for introducing these subjects through interactive and practical methods.

The proliferation of smart devices and connected home ecosystems is also playing a pivotal role in market expansion. Toys that can seamlessly integrate with home assistants and other smart technologies offer enhanced interactivity, catering to the preferences of tech-savvy families and providing a more connected and enriched play environment.

Parental Preference for Screen-Free Interactive Educational Technology Propels Market Growth

Cross-sectional research carried out in Guangzhou and Shenzhen indicates that multi-sensory educational toys substantially enhance engagement levels and cognitive performance when compared to tablet-based solutions. Simultaneously, survey results from Japan reveal increasing acceptance of emotional AI in early childhood education, indicating a robust cultural receptiveness to blended physical-digital learning technologies. Supporting this trend, robotics manufacturer WhalesBot has established partnerships with 11,000 educational institutions across 31 countries and organizes annual competitions that attract over 100,000 participants—demonstrating widespread institutional interest in hands-on coding platforms.

Market Restraints and Challenges:

Increasing Compliance Costs Driven by Global Child Data Protection Regulations Impede Market Growth.

The European Union's proposed Toy Safety Regulation introduces digital product passports and mental health protection measures for connected toys, offering a 30-month transition period but imposing extensive documentation requirements. In the United States, the Consumer Product Safety Commission is implementing new durability testing standards for button-cell batteries under Reese’s Law, significantly increasing certification costs, particularly for smaller manufacturers. These combined regulatory pressures are driving up engineering expenditures and extending product development timelines, ultimately benefiting established players with specialized compliance teams.

Battery Safety Recalls Undermine Consumer Confidence and Restrain Market Expansion.

Manufacturers are required to redesign battery compartments and comply with torsion testing standards within six months following the publication of the final regulation, resulting in increased tooling and production expenses. Meanwhile, growing parental concern over battery-related safety issues has led to heightened skepticism toward battery-operated toys. The resulting reputational impact continues to influence consumer behavior, with many families opting for well-established brands known for their consistent safety performance.

Market Opportunities:

Standardized STEM Curricula Require Hands-On Robotics Kits, Driving Market Opportunities.

China’s national smart education strategy emphasizes digital literacy and requires hands-on robotics activities within classroom settings. Supporting preschool regulations establish quality benchmarks for technology-integrated learning environments, reinforcing the need for programmable robotics kits. Companies like WhalesBot and other suppliers are now tailoring block-based coding curricula that align seamlessly with official educational standards, securing consistent institutional purchasing even amid fluctuations in discretionary budgets.

SMART TOYS MARKET REPORT COVERAGE:

Smart Toys Market Segmentation:

Smart Toys Market Segmentation By Product Type:

• Robots
• Interactive Games
• Educational Robots

The smart interactive games segment currently leads the market. The ongoing advancement and widespread availability of technologies such as smartphones, tablets, and gaming consoles have played a pivotal role in boosting the popularity of interactive games among children. The immersive nature and engaging features of these platforms make interactive games both appealing and readily accessible to young users.

By providing a tailored educational experience, interactive smart toys enhance learning effectiveness by addressing the unique needs of each child.

The smart educational robots segment is also projected to experience substantial growth during the forecast period. The rising adoption of homeschooling and alternative education approaches is a significant driver of this demand. As more parents opt for home-based education, the need for engaging and effective educational tools has intensified. Educational robots, which blend entertainment with instructional content, are increasingly favored by homeschooling families, thus supporting their expanding role as essential learning aids.

Smart Toys Market By Technology:

• Bluetooth
• Wi-Fi
• RFID or NFC

Bluetooth technology dominates the segment due to its widespread integration in consumer electronics such as tablets and smartphones, facilitating seamless connectivity and interaction with toys. It is favored for its user-friendly nature, low energy consumption, and secure connections—features that are crucial for devices intended for frequent use by children.

Wi-Fi-enabled toys provide the added benefit of internet connectivity, enabling functionalities like content downloads and remote control over extended distances. However, concerns regarding security and privacy may influence parental purchasing decisions in this category.

RFID and NFC technologies are frequently utilized in toys for younger children due to their simplicity and ability to trigger toy functions when tagged objects are in close proximity. This technology is especially valuable in educational settings, where interaction with physical objects can significantly enhance the learning experience.

Smart Toys Market By End-User:

• Toddlers
• Pre-schoolers
• Stripling
• School-going
• Other End-Users

Striplings, defined as older children generally aged 12 to 16, constitute the largest end-user segment within the smart toy market. This group’s technological proficiency enables them to independently interact with more complex and feature-rich toys.

Toddlers and preschoolers constitute another key demographic, benefiting from toys specifically designed to enhance motor skills and foundational cognitive abilities. These toys are generally simpler, emphasizing basic interactions and ensuring safety.

School-age children primarily engage with smart toys that are educational in nature, designed to complement their academic learning through interactive and enjoyable experiences.

Technological innovation and enhanced interactive features continue to propel the market forward, with a strong focus on educational value and the cultivation of cognitive and technical abilities. As technology becomes increasingly integrated into daily life, the smart toy market is expected to expand and diversify further to address the changing demands of young consumers.

Smart Toys Market By Distribution Channel:

• Online
• Ecommerce Stores
• Offline
• Specialty Stores

The offline segment has historically dominated the smart toy market. This hands-on experience offers a tangible understanding of the products’ features and functionalities, appealing to buyers who value sensory engagement before making a decision.

The offline segment benefits from the immersive and interactive nature of in-store shopping, which enhances brand visibility and fosters consumer trust. Brick-and-mortar retailers provide manufacturers with opportunities to prominently display products, increase brand awareness through dedicated in-store presentations, and utilize knowledgeable sales staff to guide customers through the features and benefits of smart toys.

Conversely, the online segment represents the fastest-growing channel in the market, delivering a seamless shopping experience that significantly contributes to overall market expansion. According to data from the U.S. National Library of Medicine, approximately 30.6% of U.S. parents purchase toys for their children through online platforms. Furthermore, increasing global connectivity and the facilitation of cross-border trade via e-commerce platforms are key drivers of online growth. This globalization of product availability continues to accelerate the expansion of the online segment.

Smart Toys Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

The North American smart toys market dominates the region, bolstered by a robust network of toy retailers, department stores, and electronics outlets that provide a diverse selection of smart toys. Additionally, the integration of voice-activated technology is fueling market growth in North America. Voice-activated smart toys, equipped with virtual assistants and interactive features, provide children with a hands-free and intuitive user experience. This trend toward voice technology aligns with consumer preferences for convenient and innovative play, further driving engagement within the market.

The U.S. smart toys market is projected to experience continued expansion, influenced heavily by popular culture and media trends. Licensing agreements with well-known characters from movies, television shows, and digital content play a significant role in this growth. Smart toys featuring licensed characters often achieve higher popularity, as collaborations with entertainment franchises enable manufacturers to develop compelling products that resonate strongly with U.S. consumers. Moreover, the increasing adoption of subscription-based models in the U.S. contributes to market growth by offering consumers ongoing access to fresh content, updates, and enhanced features.

The Asia Pacific smart toys market is also poised for growth, driven by parents’ strong focus on educational products for their children. Cross-industry collaborations among technology firms, toy manufacturers, and entertainment franchises are key factors fueling market dynamism in the region.

Smart Toys Market COVID-19 Impact Analysis:

The COVID-19 pandemic accelerated the transition to online shopping and the adoption of digital learning tools, thereby intensifying the demand for smart toys that facilitate remote education and home-based entertainment. In response, manufacturers are increasingly adopting omnichannel strategies to broaden their market presence and address varied consumer preferences. Online sales channels now represent a substantial portion of the smart toys market, highlighting the lasting impact of the pandemic in accelerating the shift toward digital purchasing behaviors.

Latest Trends and Developments:

The integration of the Internet of Things (IoT) within smart toys represents a significant emerging trend. IoT-enabled toys are capable of connecting with other devices, offering advanced functionalities such as real-time data exchange and personalized play experiences. This development aligns closely with the expanding adoption of smart home ecosystems.

Sustainability is also gaining traction in the market, with eco-friendly smart toys increasing in popularity as consumers prioritize environmentally responsible and sustainable products. Manufacturers are responding by focusing on the production of toys crafted from biodegradable materials and incorporating energy-efficient components.

Furthermore, the advancement of AI-powered learning companions that adjust to individual children’s learning styles is attracting considerable attention. Collectively, these trends are poised to stimulate continued innovation and growth within the smart toy industry.

Key Players in the Market:

1. Playmobil
2. Sega Toys Co. Ltd.
3. Pillar Learning
4. Mattel Inc.
5. LeapFrog Enterprises Inc.
6. Lego System A/S
7. Hasbro Inc.
8. Tomy Co. Ltd.
9. Robofi LLC
10. Doctor’s Associates Inc.

Market News:

June 2025: Mattel formed a partnership with OpenAI to develop AI-powered toys targeting users aged 13 and older, committing to stringent safety measures throughout the development process.

May 2025: Mattel renewed its multi-year global licensing agreement with Disney for the Toy Story franchise, aligning with the brand’s 30th anniversary and the launch of Toy Story 5.