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Connected Toys Market Size, Analysis, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2025 – 2034
Report ID: GMI4119
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Authors: Avinash Singh,
Connected Toys Market
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Connected Toys Market Size
The global connected toys market is expected to grow strongly with a noteworthy CAGR between 2025 and 2034, stimulated by the rapid adoption of Internet of Things (IoT) technology and smart devices in children's play situations. Parents and children globally are increasingly turning toward connected toys that integrate entertainment, education, and safety features. These intelligent toys not only entertain kids with interactive and adjusting games but also provide parents with tranquility through live tracking of their kids' actions and whereabouts.
The worldwide surge of digital adoption, particularly in developing economies, has driven the market for connected toys. With increasing cost-effective connectivity solutions and pervasive smartphone penetration, the toys have become available to various consumer segments. Secondly, increased demand for STEM education among young children has strongly contributed to the popularity of connected toys, which frequently embed learning content in a play-friendly manner.
US retail toy sales totaled $28.3 billion in 2024, said the Toy Association. These figures were derived from Circana's U.S. Retail Tracking Services, which monitor 71% of the US toy market. The pattern reflects the increasing world demand for cutting-edge toy innovations, such as connected and interactive toys, as makers increasingly use technology to meet contemporary consumers' demands.
Despite the optimistic growth prospects, the connected toys market has some challenges ahead that can influence growth:
Connected Toys Market Trends
The connected toys industry continues to evolve rapidly, shaped by several emerging trends that are redefining how children play and learn:
Today's interconnected toys are also adding artificial intelligence (AI) and machine learning (ML) features to offer adaptive learning and interactive adaptation. Interconnected toys can now identify a child's voice, react with context-based responses, and optimize difficulty levels according to the child's performance. This means that games are becoming more engaging and immersive, further developing the child's creativity and mind. Augmented Reality (AR) and Virtual Reality (VR) Additions
The integration of AR and VR into connected playthings is making playtime more engaging by merging digital content with the real world. This results in immersive environments where kids can navigate educational situations, virtual puzzles, and interactive storytelling. AR-based toys are particularly finding favor for giving the option of hands-on learning along with entertainment.
With increasing cybersecurity threats, manufacturers are now focusing on data privacy and secure communication protocols for smart toys. Industry regulations and standards, including the Children's Online Privacy Protection Act (COPPA) in the United States, are compelling businesses to put in place strong protections for unauthorized access to data and cyber threats. Parents are increasingly asking for toys with clear and transparent privacy policies and secure cloud platforms.
One of the trends in the connected toys market is moving toward sustainable and eco-friendly materials. Environmentally aware parents and consumers are looking for toys made of recycled plastics, bioplastics, and non-toxic materials. Major players are adopting sustainability in product design and packaging in sync with the overall global push to minimize environmental footprint.
Connected toys are not separate gadgets anymore; they increasingly sync with smartphones, tablets, and home assistants to form a seamless multi-device environment. The connectivity allows for greater interactivity, parent remote control features, and additional educational materials through special apps, encouraging ongoing engagement beyond in-hand play.
Personalization is an emerging demand segment, with most connected toys featuring customized avatars, voice choices, and personalized learning modules. Personalization enhances emotional bonding and promotes longer game usage, supporting developmental milestones as well as individual learning patterns.
Connected Toys Market Analysis
Tablet-connected toys segment is expected to record high growth during 2034. Tablets are now the main device used by children for education and entertainment globally, and connected toys that connect to tablets offer immersive interactive experiences, blending the hands-on approach of play with digital learning. The growing availability of low-cost tablets and rising internet penetration in emerging nations further strengthen this segment's growth.
The retailer segment is likely to achieve robust growth in the forecast period, aided by a wide reach to customers through physical stores and online channels. Retailers offer customers the convenience of touch and feel inspection before buying and instant availability, while e-commerce channels allow convenience and broader product offerings. Hybrid retailing is becoming a sought-after channel for networked toy buying.
Europe is set to be a major regional market for smart toys, driven by the speedy development of AI, machine learning, and speech recognition technologies. The high level of regulatory maturity in the region, with the UK's Information Commissioner's Office (ICO) Age-Appropriate Design Code leading the way, encourages safer and more ethical product design by children's privacy requirements. Increasing penetration of handheld devices for learning and recreational reasons also enhances market growth in Europe.
The Asia-Pacific region, which is spearheaded by nations such as India and China, is projected to show the most rapid growth based on growing middle-class demographics, rising disposable incomes, and escalating digital literacy. Initiatives by governments to encourage STEM learning and online learning platforms also serve as drivers in the region.
Connected Toys Market Share
Key players of the marketplace are innovating at a fast pace to leverage escalating consumer attention. Key players worldwide include:
The firms concentrate on introducing technologically sophisticated, education-oriented, and safe connected playthings that attract contemporary parents and children. Partnerships with technology companies and schools enable them to remain innovative at the frontier.
Connected Toys Industry News
In June of 2022, Mattel, Inc. expanded its Mattel PlayBack program to Fisher-Price toys. Fisher-Price is added to Barbie, MEGA, and Matchbox in the toy takeback program, where families can give a second life to their Mattel toys when playtime is over.
The LEGO Group and Universal Products & Experiences, in May 2025, launched new sets based on DreamWorks Animation's Gabby's Dollhouse: The Movie, to be released a month before the film's September release. The series features two LEGO sets for kids aged 4 and above.