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Connected Toys Market size is poised to grow with a lucrative CAGR between 2023 and 2032, with the growing adoption of IoT and connected devices. Globally, both parents and children are increasingly inclining toward innovative technologies that blend education with playtime. This has resulted in the high acceptance rate of connected toys as they help parents keep track of their children's activity at all times.
The connected toys market growth is amplified by the increased adoption of science, technology, engineering, and mathematics (STEM) toys and the widespread adoption of handheld devices and the internet. Besides, the introduction of more fun and interactive features in these toys, attributed to the consistent advances in the application programming interface (API), will further create an optimistic growth outlook for the worldwide industry.
However, the several privacy concerns associated with internet-connected toys and their greater vulnerability to cyberattacks are expected to impact the industry market performance. Lately, a number of connected toy manufacturers have been accused of spying and undertaking deceptive practices. Moreover, the surging incidences of massive cloud failures in these devices have kept user security at stake.
Regarding the mode of interface, the connected toys market from the tablet-connected toys segment is likely to amass appreciable revenues through 2032, attributed to the rising adoption of tablets and the increasing number of internet users across the globe. Over the past few years, the use of tablets among children and young adults for gaming, education, and other purposes has grown exponentially. The introduction of new connected toys that are compatible with tablets will drive the market growth.
Based on the distribution channel, the overall market share from the retailers segment is estimated to grow at a noticeable pace from 2023 to 2032. Local retail stores have access to a broader consumer base and ensure the availability of a wide range of premium and affordable products. Besides, their strong supply chain and better understanding of consumer requirements will drive the market expansion.
Europe connected toys market revenue will gain remarkable momentum during the forecast timeline, owing to the early adoption of and ongoing developments in AI, machine learning, and voice and speech recognition technologies. The growing adoption of handheld devices among kids to have fun and interactive learning session is also a major factor behind this expansion.
In the U.K., for example, the Information Commissioner Office’s (ICO) Age-Appropriate Design Code is expected to come into effect in September 2021. According to the ICO, one in five internet users in the country is under 18 years old. The code applies to applications, programs, connected toys and devices, online games, streaming services, social media platforms, and other services accessed by children which process personal data.
Some of the leading companies involved in the connected toys market include Globally, Lego Group, Nintendo Co., Ltd., Fisher-Price, Inc., Hasbro, Inc., Mattel Inc., Tomy Company, Ltd., VTech Electronics North America, LLC., Jabil Inc., Melissa & Doug, Little Tikes, Tru Kids, Inc., LeapFrog Enterprises, Inc., Kids II Inc., K'NEX Industries Inc., and Sphero Inc. New, more improved, and technologically advanced toys for children are constantly entering the market as these companies focus on capitalizing on their growing popularity.
For instance, in January 2023, Mattel Inc. selected HCLTech to foster transformation across its global technology outlook, cutting across infrastructure, applications, and information security fields. With the move, HCLTech will offer services as a primary IT digital transformation partner to Mattel for the next many years and will support the company's ongoing digital transformation journey and future direction with its affluent understanding of executing such multi-dimensional engagements.
This connected toys market research report includes in-depth coverage of the industry with estimates & forecast in terms of USD from 2018 to 2032 for the following segments:
Market, By Interface
Market, By Age
Market, By Distribution Channel
The above information has been provided for the following regions and countries: