Connected Toys Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI4119
Connected Toys Market size is anticipated to grow steadily over the forecast time span owing to the rise in the adoption of technology-enabled devices such as smartphones, tablets, computers, smart televisions, and others. These products are enabled with internet connectivity, Bluetooth, sensors, GPS tracking, and voice recognition systems, making them highly interactive and entertaining. In addition, the market is projected to gain demand as these toys emphasize on enhancing sociability and collaborative play skills of children by facilitating interactive communication. These toys include responsive robotic animals, birds, books, instruments, modular bricks, soft toys, cars, and bikes, which are enabled with ultrasonic waves, light, and sense touch. The growing adoption of such advanced products will positively impact the connected toys market growth.
Data breaches and concerns related to children’s privacy are the factors hindering the connected toys market growth. Several government agencies/organizations are implementing several regulations to curb these breaches. For instance, in February 2017, Federal Network Agency in Germany banned “My Friend Cayla”, an internet-connected toy, which was able to chat with young children. The authorities urged parents nationwide to disable the toy as it was embedded with an insecure Bluetooth device. Owing to such security-based factors, several consumers are hesitant to purchase these toys, thereby hampering industry growth. However, to overcome such threats, manufacturers are adhering to strict regulations globally. For instance, in the U.S., children’s online privacy rule has been implemented. Adhering to ISO/IEC 17025:2005 standard is a primary focus for the players operating in the market.
In addition, companies in the connected toys market are collaborating with technology providers to improve the core features in the products and make them safer & user-friendly. For instance, CogniToys Dino is a cloud-connected device, which uses Wi-Fi and IBM Watson to stay connected. The toy uses IBM Watson’s Natural Language Processing (NPL) and responses according to a child’s skill sets and age group. The device utilizes internet connectivity and helps children for improving pronunciations and cautioning them if they use expletives. Schools and playgroups in several countries are emphasizing on using interactive teaching methods to make learning interesting, thereby positively impacting the connected toys market growth. The awareness for Science, Technology, Engineering, and Math (STEM) field is increasing across various countries, driving the adoption of innovative toys. For instance, the Lego Group, a toy production company based in Denmark has invented a connected toy that teaches children the basics of coding at an early age. This has led to the adoption of innovative toys in several education institutes for development and engagement of children in classrooms.
Based on the mode of interface, the connected toys market has witnessed an increasing demand from smartphones. In 2018, the National Consumers League (NCL) of the U.S. reported that more than 30% of children under the age of 15 own a smartphone in the U.S. This has led to manufacturers developing smartphone-based toys, which leverage the capabilities of modern connected devices. For instance, in 2018, SZ DJI Technology Co., Ltd., a China-based technology company launched Mavic Air, a compact folding drone that uses hand gestures and a smartphone application to fly and record. Such innovations are anticipated to drive the market over the forecast timespan.
In the connected toys market, online distribution channel accounted for the majority of the sales revenue owing to the advantages offered by this channel such as ease in shopping and large reach of home delivery of products to remote locations. Moreover, online retailers are using several techniques, such as providing promotional offers and using special displays, to lure customers into buying innovative products. Price discounts are being offered by various e-commerce companies on the channel, driving the sales retailers globally. Several businesses are moving their brick & mortar stores to e-stores. In 2018, over 65% of the consumers in the U.S. purchased goods online and this figure is anticipated to increase over the coming years.
In 2018, the North America connected toys market accounted for a majority of the industry share owing to the increase in the adoption of smartphones, tablets, and internet-enabled devices by children under the age of 15 in the U.S. and Canada. Traditional toys in the U.S. are being converted into innovative products, which are built-in with Bluetooth and internet connectivity. For instance, Wiggy – Piggy bank was developed for teaching children virtual fund management skills. The product is a mobile connected piggy bank, which helps manage funds and chores easily. In addition, several manufacturers in the North America connected toys industry are aggressively targeting to purchase licenses that are required to manufacture toys associated with movies and shows in the U.S. Companies are acquiring intellectual property rights to strengthen their presence across the North America market.
Companies operating in the connected toys market include the Lego Group, Mattle Inc., Hasbro, Inc., Sphero Inc., Fisher-Price, Inc., K'NEX Industries Inc., Kids II Inc., Jabil Inc., LeapFrog Enterprises, Inc., Tomy Company, Ltd., Tru Kids, Inc., VTech Electronics North America, LLC., Little Tikes, Melissa & Doug, and Nintendo Co., Ltd. The industry is witnessing several innovations and collaborations to innovate and develop intelligent & interactive toys. Moreover, several companies globally are engaged in innovating superior toys that will help drive their revenue and expand their presence in the market.
Connected Toys Market, By Interface
- App-based connected drones
- Console connected toys
- Smartphone connected toys
- Tablet connected toys
Connected Toys Market, By Age
- 2-5 years
- 6-8 years
- 8-12 years
Connected Toys Market, By Distribution Channel
- Specialty stores
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa (MEA)
- South Africa
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