Connected Toys Market – Trends Forecast Till 2031

Market Snapshot

Market Overview

The global Connected Toys Market size was estimated at USD 9,890 million in 2024 and is projected to reach USD 35,026.28 million in 2031 at a CAGR of 19.8 % during the forecast period 2025-2031.

The Connected Toys Market refers to the segment of the toy industry that integrates smart technologies such as internet connectivity, sensors, and artificial intelligence into toys to provide interactive and personalized play experiences. These toys are designed to engage children in learning, entertainment, and development through real-time data, voice recognition, and online features. They can be connected to smartphones, tablets, or other devices to offer dynamic content and allow for remote control or monitoring, creating an immersive experience that adapts to a child's preferences and actions. This market is rapidly growing as parents and educational institutions increasingly seek innovative ways to foster learning and entertainment.

The scope of the Connected Toys Market includes a variety of products such as smart dolls, robots, educational toys, and augmented reality (AR) games. These toys often come with built-in features like voice commands, virtual interactions, and even integration with online platforms for updates or new content. Companies in the market are also incorporating safety features to protect children’s privacy and ensure a secure environment while using connected toys. As the demand for tech-driven toys rises, manufacturers are exploring ways to improve the interactivity and customization of these products while ensuring they are both fun and educational.

Current trends in the Connected Toys Market include the growing use of artificial intelligence, machine learning, and voice recognition to enhance the learning experience. Many connected toys are now capable of adapting to a child's behavior and preferences, creating a more personalized and engaging environment. There is also a significant push toward incorporating educational content such as coding, STEM subjects, and language development into toys to promote learning through play. Additionally, the integration of augmented reality (AR) is becoming increasingly popular, offering children an immersive and interactive experience that blends the physical and digital worlds.

The primary drivers of the Connected Toys Market include the increasing adoption of smart devices by children and the rising demand for educational and interactive play. As parents look for innovative ways to blend entertainment with learning, connected toys provide a valuable solution by offering both fun and educational benefits. Advances in technology, particularly in AI, cloud computing, and wireless connectivity, are enabling the development of more sophisticated and engaging products. Moreover, growing concerns about children's privacy and safety are leading to a focus on creating secure, age-appropriate connected toys that parents can trust.

Impacts USA tariff rates on the Connected Toys Market

The 2025 tariffs implemented by the Trump administration have significantly affected the global connected toys market, particularly in the United States. With tariffs reaching up to 145% on imports from China and an additional 10% on goods from other countries, toy manufacturers and retailers are grappling with increased production costs and supply chain disruptions . Major players like Hasbro have expressed concerns that these tariffs could impact consumer spending on toys, potentially mirroring the downturn experienced during the 2008 recession . Retail giants such as Walmart and Target have warned of potential price hikes and product shortages, emphasizing the strain on maintaining stable supply chains . These challenges are prompting companies to reassess their sourcing strategies and consider increasing domestic manufacturing to mitigate the impact of tariffs

Delvens Industry Expert's Standpoint

Experts in the Connected Toys Market highlight several key trends driving growth and innovation. The Connected Toys Market involves the integration of smart technologies like AI, sensors, and internet connectivity into toys to offer interactive, personalized play experiences. These toys, including smart dolls, robots, and educational products, engage children through real-time data, voice recognition, and online features, blending learning with entertainment. The market is driven by growing demand for tech-driven, educational toys, advancements in AI and AR, and a focus on child safety and privacy. As parents seek innovative ways to enhance learning through play, connected toys are becoming increasingly popular, offering both entertainment and educational value in an interactive, secure environment.

Analyst view on the impacts of U.S. tariff rates on the Connected Toys Market

Despite the current trade challenges, the connected toys market is poised for substantial growth. This growth is driven by increasing consumer demand for interactive and educational toys, advancements in technology, and the proliferation of smart devices. The Asia-Pacific region is expected to be the fastest-growing market, while North America remains the largest . Companies are investing in product innovation and exploring alternative supply chains to navigate the evolving trade landscape. As the market adapts to these changes, the emphasis on digital integration and personalized learning experiences is anticipated to sustain the upward trajectory of the connected toys industry.​

Market Portfolio

Key Findings

• Based on Age Group, connected toys are tailored for different stages of childhood development. The 1–5 Years segment focuses on toys designed for younger children that incorporate simple, intuitive interactions. These toys often emphasize sensory stimulation, motor skill development, and early learning experiences through features like touchscreens or voice commands. The 6–8 Years age group is targeted with toys that introduce more complex interactions, combining learning and entertainment. These toys may include games, educational content, and augmented reality (AR) experiences, helping children develop problem-solving skills. For the 9–12 Years group, connected toys often focus on cognitive development, creativity, and more advanced educational content, such as STEM-based toys. These toys engage children in activities that encourage critical thinking and hands-on learning. Finally, the Teenagers segment is focused on more sophisticated, interactive toys that may include video games, virtual reality (VR), or social networking features, allowing for social interaction and a deeper level of engagement with technology.

• Based on Interfacing Device, connected toys rely on various devices to interact with children. The Smartphone/Tablet segment is one of the most common ways these toys interface with users, allowing for app-based interactions, controlling toys via mobile devices, and enabling content updates. These devices are often the most user-friendly, providing an intuitive interface for both children and parents. The PC/Laptop segment involves toys that can be connected to computers or laptops, often for more immersive gaming or educational experiences. These toys might require more complex interactions, such as coding, programming, or virtual environments.

• Based on Distribution Channel, connected toys are sold through Online and Offline channels. The Online segment has seen significant growth, driven by the convenience of e-commerce platforms, which allow consumers to browse and purchase toys from the comfort of their homes. Online retailers also provide product reviews, ratings, and detailed specifications, which help customers make informed decisions. On the other hand, the Offline distribution channel involves physical retail stores, such as toy shops, department stores, and electronics outlets. Here, customers can physically interact with the toys, which allows for a more tactile shopping experience. However, this channel is gradually being supplemented by online sales as more consumers shift to digital shopping.

• Based on Technology, connected toys use different technologies to enable interactivity and connectivity. Wi-Fi technology is commonly used in connected toys, enabling remote control, real-time content updates, and online interactions. Wi-Fi-connected toys often allow for cloud-based data storage, multiplayer online games, and integration with other smart home devices. Bluetooth technology is also widely used, especially for toys that need to be paired with other devices within a limited range. Bluetooth-connected toys tend to focus on simpler, shorter-range interactions but are energy-efficient and easy to set up. Additionally, there are Other Technologies being explored, such as Near Field Communication (NFC) and RFID, which are used for specific functions like identifying and customizing toys, tracking movements, or enabling certain gaming features.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and middle east and Africa. North America region is projected to hold the largest market share. factors such as increasing demand for interactive and educational play, integration of iot and ai technologies, rising smartphone and tablet usage among children, parental demand for enhanced monitoring and control, growth of stem education initiatives, expansion of e-commerce and online retail channels, advancements in augmented reality (AR) and virtual reality (VR), development of voice-activated and app-connected toys, customization and personalization of play experiences, increased consumer awareness and demand for quality, collaborations between toy manufacturers and technology companies have triggered the connected toys market in the region.

Regional Analysis

North America to Dominate the Market

• In North America, the connected toys market thrives due to a combination of high disposable incomes, early adoption of technology, and a strong presence of major toy manufacturers and tech companies. The region's robust technological infrastructure and consumer interest in educational and interactive play experiences contribute to the widespread acceptance of connected toys among parents and children alike. Collaborations between tech firms and toy manufacturers further enhance product offerings, ensuring a continuous stream of innovative connected toys in the market.​

• Europe's connected toys market is characterized by a strong emphasis on educational content, data privacy, and regulatory compliance. Countries such as Germany, the United Kingdom, and France lead the adoption of connected toys, driven by well-established healthcare systems and high dental care expenditure. The region's commitment to sustainability and ethical considerations influences consumer preferences, with many parents prioritizing toys that align with these values. Additionally, Europe's focus on integrating connected toys into educational curricula supports their growth in the region.​

• The Asia Pacific region is experiencing rapid growth in the connected toys market, fueled by factors such as economic development, rising disposable incomes, and increasing awareness of advanced educational technologies. Countries like China, India, Japan, and South Korea are at the forefront, with significant investments in digital infrastructure and technology. The proliferation of mobile devices and internet connectivity among children accelerates the adoption of connected toys, making this region one of the most dynamic in the global market.​

• In Latin America, the connected toys market is witnessing gradual growth, influenced by urbanization, rising income levels, and improving digital infrastructure. Countries like Brazil and Mexico are focusing on modernization and efficiency improvements, leading to the adoption of connected toys that optimize resource management and operational processes. While challenges such as economic fluctuations and limited technological infrastructure exist, the growing interest in advanced educational technologies and the increasing availability of affordable solutions are driving market expansion.​

• The Middle East and Africa (MEA) region is experiencing a surge in connected toys adoption, driven by government-led initiatives and investments in digital infrastructure. Countries in the Gulf Cooperation Council (GCC) are leveraging connected toys to enhance educational outcomes and improve children's engagement with learning materials. The integration of connected toys is particularly evident in urban development projects, where efficiency and innovation are paramount. The region's focus on technological advancement and the growing availability of digital services further accelerate the adoption of connected toys.

Competitive Landscape

• Mattel
• Hasbro
• LEGO
• Sony
• VTech
• UBTECH
• DJI
• iRobot
• Sphero
• Digital Dream Labs
• Pillar Learning
• Wonder Workshop
• TOSY Robotics
• Workinman Interactive
• WowWee Group
• KEYi Technology
• Miko
• Makeblock
• Smart Teddy
• Intelino
• Fischertechnik
• Potensic
• Mainbot
• ROYBI
• PlayShifu

Recent Developments

• In June 2023, Hasbro announced a global administration partnership with Sony Music Publishing to manage its extensive portfolio of fan and family brands. This agreement covers iconic franchises such as Peppa Pig, Transformers, My Little Pony, and many others, helping to expand Hasbro’s reach and enhance the fan experience through music and media.

• In April 2023, Hasbro revealed a series of multi-year licensing agreements aimed at creating co-branded toys and games. These partnerships include notable collaborations with Barbie and Transformers—for example, a Monopoly game themed around Barbie launching in fall 2023, an UNO game inspired by Transformers hitting shelves later that year, and Hot Wheels vehicles based on the same franchise scheduled to debut in early 2024.

• In March 2023, The LEGO Group India partnered with Amazon.in to launch the LEGO Brand Days, offering exclusive deals and promotions for LEGO enthusiasts across the country.

• In September 2022, iRobot introduced the Roomba Combo j7+, an advanced robot vacuum and mop combination, along with updates to its software platform, iRobot OS 5.0. These innovations were designed to enhance the cleaning experience, particularly for homes with pets and children, by offering smarter navigation and improved performance.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
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Report Scope