ID: MRFR/ICT/9329-HCR | April 2022 | Region: Global | 100 pages
The global smart toys market size is expected to register a significant CAGR of 26.0% during the forecast period and is projected to reach a market value of USD 107.02 billion by 2030.
Smart toys embedded with artificial intelligence (AI) technology produce interactive playing experience in children from different age groups. Devices including smart speakers to robotic companions which are capable of identifying, speaking, and interacting with children; smart toys provide several probable advantages such as assist children through different learning activities, playing, develop creative ideas, and problem-solving skills.
Smart toys cater to the basic intent of toys i.e., to entertain and can go beyond that providing several benefits to the children using them. For instance, smart toys enable kids advance their social skills as they receive a quick response to their behavior. Further, smart toys develop problem-solving skills amongst children as the interaction boosts cognitive processes and think creatively while using their imaginations, encourage exploration, learn skills that are essential to cope with the today’s digital world. Also, some smart toys offer lessons from STEM streams including Science, Technology, Engineering, and Math; and programming & basics of AI which expand and broaden children’s explorations. In addition, they help develop motor skills, especially helpful for the learning-disabled children.
Some of the factors that drive the smart toys market comprise of rising expending power among individuals, rapid adoption of technologies to design & develop interactive toys, and surging demand for smart toys. Whereas coexistence high cost and lack of awareness are hampering this growth trend in smart toys market. However, the market is opportuned by rapid innovations in technology. Further, children's rights and privacy concern create challenges for the market.
Smart Toys Market COVID-19 Analysis
The outbreak of novel coronavirus initially in the China’s Wuhan province which later spread across the globe created an unprecedented situation for government bodies to control the spread of deadly virus. This made authorities to impose stringent policies such as lockdowns, movement restrictions, shutting down of industrial & other non-commercial facilities including educational premises, administrative offices, etc., among others to prevent the viral spread. However, enforcement of ‘stay at home’ policies made rapid shift from traditional business activities to digital platforms for the purpose of business continuity and customer support services during such unprecedented situation. Nevertheless, the smart toys industry was not different from the others and was affected by this pandemic situation owing to the supply chain disruptions, standstill semiconductor manufacturing activities, clogged transportation, financial constraints, lack of skilled workers, and so on. Meanwhile, owing to the shift of learning methodology from classroom method to online platforms, stay at home orders, delayed vaccination drives for children, increased screentime, among others boosted the demand for smart toys among parents intended towards keeping them busy and learn while entertaining themselves.
Smart Toys Market Dynamics
Further, the adoption of technology in education industry is rapidly surging with time are expected to keep up the demand for smart toys in near future. Also, increasing awareness regarding technologies such as IoT, AI including machine learning and deep learning, advancements in semiconductor manufacturing, and so on are expected to add to the demand,
Smart Toys Market Segmentation
The global smart toys market has been segmented based on type, technology, distribution channel, end-user, and region.
The sub-segment of type segment comprises of robots, interactive games, educational robots, and others.
By technology, the global smart toys market has been divided into wi-fi, Bluetooth, RFID or NFC, and others.
On the basis of end-user, the global smart toys market has been segmented into toddlers, preschoolers, school-going, and stripling.
The global smart toys market has been analyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
Smart Toys Market Regional Analysis
The global smart toys market is estimated to register a robust CAGR of 22.4% over the forecast period. The geographic analysis of the global smart toys market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
North America is expected to register a largest market share owing to the surging demand for smart toys in the region. The US is expected to lead the country-level market in North America region owing to the benefits offered by smart toys in STEM (Science, Technology, Engineering, and Math) and emerging need for programming and embeding technologies including AI. Further, the presence of major players such as Innokind, Inc. (US), Twin Science (UK), playshifu.com (US), Fat Brain Toys, LLC. (US), ROYBI Robot (US), Mattel (US), Smart Kids Toys (US), LeapFrog Enterprises, Inc. (US), among others. Adding more, these key players are investing heavily into the research & development of innovative entertainment through learning and stay forefront of innovation while providing enriched customer experience.
Moreover, the Europe region is expected stay at the second position following North America during the review period due to the higher adoption of smart toys. On th other hand, the smart toys manufacturers operating in the region are now required to comply with the newly proposed regulation on artificial intelligence on April 21st under the name- AI Act aka the AIA which sets a scene for radical overhaul of the regulation of the digital world to put on children’s rights and design a digital world people can trust in.
Asia-Pacific is anticipated to be the fastest-growing market in the global smart toys market during the forecast period mainly due to the rapid digital transformation, increasing internet penetration, rising adoption of 5G & 4G LTE services, and others. Additionally, the region is also one of the largest consumers of telecommunication and consumer devices that includes smartphones, tablets, laptops, others that enhance the expections for emerging smart toys industry. Also, deployment of 5G services, increasing awareness and demand for STEM-oriented learning & entertainment systems is expected to boost the demand for smart toys in the near future.
The smart toys market in the Middle East & Africa and South America is expected to register robust growth during the forecast period owing to the demand for innovative learning experiences and growing adoption of technology to take the entertaining and learning experince the next level.
The global smart toys market is witnessing a high growth mainly due to rising expending power among individuals, rapid adoption of technologies to design & develop interactive toys, and surging demand for smart toys. Major players have opted for partnerships, acquisitions, and product developments as their key organic growth strategies to enhance their positions in the market and cater to the demands of children across end-uses. Also, the industry players are working towards advancing their product offerings to cater to the need of innovative toys. For instance, ecommerce giant- Amazon.com released its list of toys under ‘Toys We Love’ campaign for Christmas-2021. This is expected to promote the demand for smart toys in coming days. Additionally, the market players are going forward to increase their market presence by partnering with numerous retailers and dealers across the globe.
Smart Toys Market Key Developments
On 14th October 2021, The LEGO Group (Denmark) partnered with Target Corporation, a online & offline store operator, to manufacture and provide with products including colorful, joyful, and innovative toys & gifts for all in family.
On 27th July 2021, ROYBI Robot (US), smart toy manufacturer focused on producing AI-based edutainment system for children Pre-K-12, announced their partnership with Simon Shavanson, the retail veteran to expand their retail and education business.
On 5th July 2021, playshifu.com (US) announced their plans to boost their manufacturing capabilities in Indian market focusing on production its recently launched ‘Tacto’ toy product to launch in Indian markets by next quarter.
On 6th April 2021, playshifu.com (US) raised over USD 17 million is a Series B funding from Inventus Capital India along with Inflexor Ventures. With this the company plans to expand their product portfolio from currently 12 to 30 products by the end of 2022 including more than 20 early-learning skills to entertain and develop skills amongst children with different age groups.
Smart Toys Market Key Players
The key players in the global smart toys market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These include Innokind, Inc. (US), Twin Science (UK), APF France handicap (Leka Smart Toys) (France), playshifu.com (US), Fat Brain Toys, LLC. (US), ROYBI Robot (US), LuxAI S.A. (Luxembourg), Funvention Learning Pvt. Ltd. (India), DJI (China), Mattel (US), The LEGO Group (Denmark), Smartivity Labs (India), Smart Kids Toys (US), LeapFrog Enterprises, Inc. (US), and SEGA (Japan). The key strategies adopted by most of the players are partnerships, acquisitions, agreements/collaborations, new product developments, among others.
Global Smart Toys Market, 2019–2028 (USD Billion)
Source: MRFR Analysis
The above figure shows the robust growth of smart toys market during the forecast period from 2022 to 2030, growing at a CAGR of ~22.4% approximately and expected to reach USD 107.02 billion (approx.) by the end of forecast period.