Smart Toys Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology Type (App-Enabled Toys, Voice/Image Recognition Toys, and Other ), By Age Group, By Distribution Channel, By Region & Competition, 2021-2031F

The Global Smart Toys Market is projected to experience substantial growth, expanding from a valuation of USD 24.32 Billion in 2025 to USD 51.85 Billion by 2031, with a Compound Annual Growth Rate (CAGR) of 13.45%. This market sector encompasses playthings integrated with sophisticated electronics, including microprocessors, artificial intelligence, and wireless capabilities, which facilitate adaptive, interactive, and programmable experiences. The primary forces driving this growth include a growing parental focus on STEAM education and a desire to balance digital literacy with physical activity. Unlike traditional static toys, these intelligent devices function as essential educational tools that introduce children to complex subjects like coding and robotics, thereby fostering cognitive development through responsive engagement.

However, the market faces significant challenges related to data privacy and cybersecurity, as internet-enabled devices are prone to breaches that could compromise children's personal data. Despite these potential risks, consumer demand for educational technology remains strong. Data from The Toy Association in 2025 indicates that 60% of parents are actively seeking toys that cultivate STEAM skills, such as coding. This statistic reflects a persistent appetite for high-tech learning solutions, which continues to drive industry momentum even as manufacturers navigate necessary safety and regulatory hurdles.

Market Driver

The convergence of IoT technologies and Artificial Intelligence is fundamentally transforming the market by creating toys that serve as intelligent, adaptive learning partners. Leveraging cloud connectivity and advanced sensors, these smart devices personalize interactions to evolve alongside a child's cognitive development. This technological shift has fueled substantial growth within the electronic learning sector, as parents increasingly value tools that provide responsive educational experiences. According to VTech's 'FY2025 Annual Results' from May 2025, revenue for Electronic Learning Products in North America rose by 7.0% during the fiscal year, demonstrating strong consumer interest in connected educational tools. Furthermore, the industry's broader pivot toward digital-physical hybrid play is evident in the financial success of major players; Hasbro reported in February 2025 that revenue from its Digital and Licensed Gaming segment grew by 22% for the full year 2024, emphasizing the rising value of digitally integrated play.

A second critical driver is the escalating global demand for STEAM and STEM educational toys, as parents prioritize play options that nurture engineering skills, scientific literacy, and critical thinking. This trend compels manufacturers to produce programmable robotics and complex building sets that render abstract concepts tangible and engaging for young learners. As a result, brands focusing on logic-based and constructive play are outperforming the broader, more volatile market. For instance, The LEGO Group's 'Annual Results 2024', released in March 2025, showed a 12% increase in global consumer sales for 2024, largely due to sustained momentum in their diverse construction portfolio. This performance highlights how the demand for skill-building experiences protects the high-quality segment of the market, driving expansion even as traditional categories reach saturation.

Market Challenge

Cybersecurity vulnerabilities and data privacy concerns present a major obstacle to the growth of the Global Smart Toys Market. As manufacturers increasingly embed cameras, microphones, and Wi-Fi connectivity into playthings, these devices gather vast amounts of sensitive information, including real-time location logs, biometric data, and voice recordings. This extensive data collection creates a significant target for cybercriminals, increasing the risk of unauthorized surveillance of minors or identity theft. Such threats fundamentally undermine consumer trust, leading potential buyers to view these intelligent products as liabilities rather than educational assets, which in turn impedes broader market adoption.

The situation is further aggravated by the proliferation of counterfeit, unregulated devices that often bypass essential digital security protocols. According to The Toy Association, in 2025, nearly 90% of parents expressed anxiety regarding the safety of knockoff toys. This widespread concern over product integrity forces caregivers to exercise extreme caution, frequently resulting in abandoned purchases due to fears that a device lacks adequate digital security. Consequently, the industry faces a difficult struggle to convince a skeptical consumer base that these high-tech toys can effectively guarantee the protection of their children's personal information.

Market Trends

The transition toward Sustainable and Eco-Friendly Smart Materials is becoming a defining market trend as manufacturers face mounting pressure to minimize the environmental impact of electronic toys. Unlike traditional toy production, the smart toy sector must address the dual challenges of plastic waste and electronic components, leading to a strategic shift toward bio-based polymers and responsibly sourced casings. This innovation in materials serves as a core value proposition that appeals to environmentally conscious families, influencing purchasing decisions alongside digital features. Leading companies are actively re-engineering their supply chains to meet these standards; for example, The LEGO Group reported in March 2025 that 33% of the resin used in its bricks during 2024 was derived from renewable sources, nearly tripling the previous year's figure and signaling a rapid industry-wide transition toward sustainable inputs.

Simultaneously, the integration of Social-Emotional Learning (SEL) and Emotional Intelligence capabilities is redefining value propositions by extending focus beyond academic skills to address empathy and mental well-being. While earlier smart toys concentrated on cognitive tasks like coding or math, modern devices utilize sophisticated algorithms to act as supportive companions capable of recognizing and responding to a child's emotional state. This evolution addresses growing parental concerns regarding social development and anxiety management, creating a new category of "empathetic" technology that fosters interpersonal skills and resilience through natural conversation. The commercial viability of this segment is evident; according to a December 2025 China Daily article, the domestic AI toy market reached a valuation of 24.6 billion yuan in 2024, driven largely by surging demand for devices offering emotional interaction and companionship.

Key Market Players

• The LEGO Group
• Mattel, Inc.
• Leapfrog Enterprises, Inc.
• Pillar Learning, LLC.
• Seebo Interactive LTD
• Tomy Company, Ltd.
• fischertechnik GmbH
• ROYBI, Inc.
• Sega Toys Co. Ltd.
• Moravia Consulting spol. s r.o.

Report Scope

In this report, the Global Smart Toys Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Smart Toys Market, By Technology Type

• App-Enabled Toys
• Voice/Image Recognition Toys
• Other (Screen Less Toys, etc.)

Smart Toys Market, By Age Group

• Up to Age of 5
• Age of 5 to Age of 10
• Age of 10 to Age of 15

Smart Toys Market, By Distribution Channel

• Online
• Toy Shops
• Hypermarkets & Supermarkets
• Non-Retail Sales

Smart Toys Market, By Region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • France
  • United Kingdom
  • Italy
  • Germany
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• South America
  • Brazil
  • Argentina
  • Colombia
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smart Toys Market.

Available Customizations:

Global Smart Toys Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).