Smart Toys Global Market Report 2025

Smart toys are advanced and intelligent playthings designed to behave according to predetermined patterns while also adapting their behavior in response to external stimuli. These toys are equipped to configure and connect to the Internet through wireless networks like Wi-Fi or Bluetooth technology.

The primary types of smart toys include robots, interactive games, and educational robots. Robot toys encompass products with built-in motors that allow them to interact intelligently with their environment. These robotic toys offer numerous educational opportunities for children. A robot toy is essentially a machine capable of independently performing various tasks, with some even showcasing distinct personalities. Technologies such as Wi-Fi, Bluetooth, NFC, and RFID are commonly employed, and these toys are distributed through various channels, including online markets, specialty stores, and toy shops. Different interfacing devices include smartphone-connected toys, tablet-connected toys, console-connected toys, and app-connected drones. Smart toys cater to a wide range of age groups, including toddlers, preschoolers, school-age children, and adolescents.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting strain on trade relations in spring 2025 are significantly impacting the Paper, Plastics, Rubber, Wood, and Textile sector by driving up the costs of essential imported inputs such as pulp, resin, synthetic rubber, lumber, and cotton, many of which have limited domestic alternatives. Packaging manufacturers, for instance, are facing higher prices for plastic films and corrugated materials, further squeezing margins in an already highly price-sensitive environment. Similarly, textile producers are grappling with increased costs for imported yarns and dyes, adding to the burden of rising labor expenses. In response, some companies are turning to recycled or biodegradable materials, while others are consolidating their supplier base to secure bulk discounts.

The smart toys market research report is one of a series of new reports from The Business Research Company that provides smart toys market statistics, including smart toys industry, regional shares, competitors with a smart toys market share, detailed smart toys market segments, market trends and opportunities, and any further data you may need to thrive in the smart toys industry. This smart toys market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart toys market size has grown exponentially in recent years. It will grow from $20.85 billion in 2024 to $25.02 billion in 2025 at a compound annual growth rate (CAGR) of 20.0%.

The smart toys market size is expected to see exponential growth in the next few years. It will grow to $55.08 billion in 2029 at a compound annual growth rate (CAGR) of 21.8%. The growth in the forecast period can be attributed to rise in edutainment, increasing popularity of connected toys, parental empowerment, increasing demand for app-enabled mechanical toys, rising demand for interactive and engaging toys. Major trends in the forecast period include augmented reality (AR) and virtual reality (VR), voice and gesture control, interconnected play, ai-powered playmates, expansion of 3D printing technology and proximity sensors in toys.

The forecast of 21.8% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through higher import costs on electronics, sensors, and app-connected modules used in interactive toys manufactured in China and South Korea, impacting pricing and innovation in the toy industry. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The rising awareness of technology-led education is expected to drive the growth of the smart toys market during the forecast period. Technology-led education involves the use of instructional technologies to enhance learning in schools, making the learning process more engaging and effective for children. As educational value becomes a key focus for toy manufacturers, more e-learning technologies are being integrated into smart toys, featuring advanced voice recognition and hardware sensors that create a more intelligent, interactive, and dynamic experience. E-learning, a significant trend in the smart toys industry, is revolutionizing how children learn through play. For instance, according to the United Nations Educational, Scientific, and Cultural Organization (UNESCO), by 2022, around 50% of lower secondary schools globally had internet access for educational purposes. The increase in technology-led education is thus contributing to the expansion of the smart toys market.

The expected increase in the number of IoT-linked devices is another factor set to boost the smart toys market. IoT-linked devices, referring to nonstandard computing devices wirelessly connected to a network, have the ability to transmit data. The integration of these devices with smart toys enhances their functionality and interactivity, providing new possibilities for learning and entertainment. This integration makes smart toys more appealing to both parents and children, thereby driving market growth. According to a report by Ericsson, a Sweden-based telecommunications company, broadband IoT (4G/5G) reached 1.3 billion connections in 2022, with nearly 60% of cellular IoT connections expected to be broadband IoT connections by the end of 2028. The increasing prevalence of IoT-linked devices is contributing to the growth of the smart toys market.

Key players in the smart toys market are focusing on developing technologically advanced products, including artificial intelligence companions, to expand their customer base, drive more sales, and increase revenue. Artificial intelligence companions, which are virtual or digital entities utilizing artificial intelligence, engage and assist users in various tasks and interactions. For example, Toymint, a Canada-based provider of toys, introduced TeddyGPT in April 2023. TeddyGPT is an AI teddy chat that offers an interactive, engaging, and educational experience for children and families. Developed by OpenAI, TeddyGPT combines the charm of a traditional teddy bear with advanced AI features, fostering interactive experiences that encourage communication, companionship, and learning beyond the capabilities of ordinary toys.

Major companies in the smart toys market are also investing in innovative products with voice recognition capabilities. Voice recognition in smart toys enables them to understand and respond to spoken commands or interactions from users. Robosen, a China-based company specializing in advanced robots, launched a Buzz Lightyear toy with conversational AI and voice recognition in September 2022. This intelligent, interactive, and programmable robot uses natural language comprehension to recognize and react to spoken commands, providing a lifelike interaction with children.

In January 2024, Smart Toys and Games, a US-based manufacturer of educational and interactive toys designed to promote learning through play, acquired Jigsaw Puzzles for an undisclosed amount. Through this acquisition, Smart Toys and Games aims to expand its product portfolio, strengthen its market presence in the UK, and utilize local manufacturing capabilities to improve efficiency and drive innovation. Jigsaw Puzzles, an England-based company, specializes in producing a wide range of high-quality jigsaw puzzles for puzzle enthusiasts.

Major companies operating in the smart toys market include The Lego Group, Mattel Inc., Hasbro Inc., JAKKS Pacific Inc., WowWee Group Limited, Anki Inc., Sphero Inc., LittleBits Electronics Inc., UBTECH Robotics Inc., Ozobot Inc., Miko (Emotix), Playmobil, Fisher-Price Inc., LeapFrog Enterprises Inc., Tomy Company Ltd., DJI Technology Co. Ltd., Wonder Workshop Inc., Innovation First International Inc., Yuneec International Co. Ltd., Spin Master Corp., Botzee India Private Limited, Siam Mandalay Co. Ltd., Wondermento Ltd., Bluebee Pals, CogniToys, Tinkerbots Games Ltd., Modular Robotics, Pai Technology Ltd., Makeblock

North America was the largest region in the smart toys market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart toys market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The countries covered in the smart toys market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The smart toys market consists of sales of intelligent toys, connected toys, gaming toys, construction toys, and creative toys.Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Smart Toys Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on smart toys market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for smart toys ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The smart toys market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Technology: Wi-Fi; Bluetooth; Other Technologies (NFC And RFID)
• 2) By Distribution Channel: Online Market; Specialty Stores; Toy Shops
• 3) By Type: Robots; Interactive Games; Educational Robots
• 4) By Interfacing Device: Smartphone-Connected Toys; Tablet-Connected Toys; Console-Connected Toys; App-Connected Drones
• 5) By End User: Toddlers; Pre-Schoolers; School-Going; Stripling
• Subsegments:
• 1) By Wi-Fi: Wi-Fi-Enabled Interactive Toys; Smart Learning Toys with Cloud Connectivity; Remote-Controlled Wi-Fi Toys
• 2) By Bluetooth: Bluetooth-Enabled Educational Toys; Smart Plush Toys with Bluetooth Connectivity; Interactive Games with Bluetooth Features
• 3) By Other Technologies: NFC-Enabled Toys for Instant Interaction; RFID-Tagged Toys for Tracking and Identification; Smart Cards and Accessories with NFC/RFID Features
• Companies Mentioned: The Lego Group; Mattel Inc.; Hasbro Inc.; JAKKS Pacific Inc.; WowWee Group Limited; Anki Inc.; Sphero Inc.; LittleBits Electronics Inc.; UBTECH Robotics Inc.; Ozobot Inc.; Miko (Emotix); Playmobil; Fisher-Price Inc.; LeapFrog Enterprises Inc.; Tomy Company Ltd.; DJI Technology Co. Ltd.; Wonder Workshop Inc.; Innovation First International Inc.; Yuneec International Co. Ltd.; Spin Master Corp.; Botzee India Private Limited; Siam Mandalay Co. Ltd.; Wondermento Ltd.; Bluebee Pals; CogniToys; Tinkerbots Games Ltd.; Modular Robotics; Pai Technology Ltd.; Makeblock
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.