Global Smart Toys Market Overview, 2024-29

Market Dynamic

Market Drivers • Rising Popularity of IoT Devices: The Internet of Things (IoT) has revolutionized the toy industry by enabling smart toys to connect with other devices like smartphones and tablets. This connectivity allows toys to offer real-time feedback, data analysis, and interactive experiences, making them highly engaging for children. IoT integration also facilitates remote monitoring and customization by parents, enhancing both the play and learning aspects. This growing interconnectivity is a major driver as families increasingly adopt smart home devices, which complement smart toys. • Growing Digital Literacy Among Children: Children today are growing up surrounded by technology, and their increasing familiarity with digital devices has spurred demand for interactive, tech-savvy toys. Smart toys provide a platform for kids to engage in digital content while promoting creative thinking, problem-solving, and learning in ways that traditional toys cannot. As digital literacy continues to rise, the demand for toys that combine education with entertainment is also growing rapidly. Market Challenges • Regulatory Compliance and Safety Standards: Smart toys need to comply with stringent global regulations concerning child safety, data privacy, and material usage. Different countries have varying safety standards and regulations, making it challenging for manufacturers to create products that meet all requirements. Compliance with these regulations often requires additional costs and delays in product launches. Navigating these regulatory frameworks while ensuring product safety, especially for connected devices, remains a challenge for the smart toy market. • Short Product Lifecycles: Many smart toys have relatively short lifecycles due to rapidly evolving technology and shifting consumer preferences. Toys that rely on specific software or operating systems may become obsolete as newer technologies emerge or when software updates are no longer supported. This constant need for innovation creates pressure on manufacturers to frequently refresh their product lines, leading to higher R&D costs and potential losses from outdated inventories. Market Trends • Integration of Augmented Reality (AR) and Virtual Reality (VR): The rise of AR and VR technologies is transforming the play experience by blending physical and digital worlds. Smart toys using AR allow children to interact with virtual characters or objects in real-world environments, while VR provides fully immersive experiences. These technologies offer new ways for children to engage with educational content, storytelling, and interactive play. As AR and VR become more mainstream, their application in smart toys is expanding, setting a trend for the future of immersive learning and entertainment. • Increased Focus on Mental Health and Emotional Development: As awareness around mental health and emotional intelligence grows, parents and educators are seeking toys that promote emotional well-being in children. Smart toys are increasingly being designed with features that teach mindfulness, empathy, and emotional regulation. For example, toys that simulate real-life social interactions or offer calming, stress-relief experiences are becoming popular. This trend aligns with the rising demand for holistic child development, where emotional and social skills are seen as just as important as cognitive abilities.

Key Development

• In February 2024, Sega Toys launched KIMIT Ragdoll, a cat-like robot pet that uses AI technology to act like a real cat. It was developed in collaboration with Elephant Robotics, an industrial robot manufacturer. The robot cat has cat-like movements, such as wagging its tail and looking up in response to sound. • In September 2023, Mattel, Inc. launched an innovative edition of Pictionary, the classic quickdraw game, called Pictionary Vs. AI. It marks the first instance of a board game seamlessly incorporating AI technology into its traditional gameplay. In this new version, the players draw while the AI guesses. • In June 2023, Hasbro launched the Furby interactive toy, a highly engaging companion with five voice-activated modes and over 600 responses, including lights, sounds, and ten distinct songs. Furby reacts to gestures, such as hugs and pats. Children can nurture Furby by providing virtual food, styling its furhawk, and enhancing its appearance with the included clip-on beads and fashionable accessories. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Smart toys market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product • Interactive Games • Robots • Educational Robots • Others By technology • Wi-fi • Bluetooth • Others By Distribution Channel • Offline • Online The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart toys industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.