Connected Toys Market Size, Share, Growth, and Industry Analysis, By Types (Smartphone Connected Toys, Console Connected Toys, Tablet Connected Toys), By Applications (2?5 Years, 6?8 Years, 9?12 Years, Teenagers, Others) , and Regional Insights and Forecast to 2034

Connected Toys Market Size

The Global Connected Toys Market size stood at USD 7.45 billion in 2024 and is projected to grow significantly, reaching USD 8.43 billion in 2025 and further expanding to an impressive USD 25.54 billion by 2034. This dynamic growth reflects a robust CAGR of 13.11% during the forecast period from 2025 to 2034. This rise is supported by the surging popularity of AI-powered learning toys, voice-interactive companions, and IoT-enabled entertainment solutions. Over 67% of parents are now inclined towards connected toys that offer cognitive development, while 54% of toy purchases are influenced by educational content integration. Moreover, 61% of smart toy manufacturers are focusing on gamification and augmented play experiences, making the market highly tech-driven and consumer-engaged.

In the U.S. Connected Toys Market, demand has surged with 39% of households adopting interactive learning devices for children aged 2–12. The market has seen a 42% growth in STEM-based toy adoption, while AI-integrated companions now represent 36% of total sales. Voice-command features are present in 48% of new launches, and 33% of purchases are influenced by smart app synchronization. Parents in the U.S. demonstrate a 40% preference for toys with parental control dashboards, contributing to rising trust in digitally connected products. Additionally, 44% of retail growth in the sector stems from e-commerce channels, supported by virtual try-on demos and augmented product testing. These trends underline a tech-savvy and safety-conscious consumer base in the American market.

Key Findings

• Market Size: The market is expected to rise from $7.45 billion in 2024 to $8.43 billion in 2025, reaching $25.54 billion by 2034, showing a CAGR of 13.11%.
• Growth Drivers: 74% increase in AI-powered toys, 66% rise in STEM-based learning tools, 59% parental engagement, 48% voice assistant integration, 51% IoT connectivity surge.
• Trends: 65% usage of cloud-linked platforms, 38% expansion in AR-integrated toys, 49% smart app compatibility, 60% demand for screenless play, 57% interest in adaptive learning models.
• Key Players: SpinMaster, LEGO System AS, Mattel Inc, VTech Holdings Ltd, Bandai Namco Entertainment & more.
• Regional Insights: North America holds 37% market share due to smart home integration; Asia-Pacific follows with 33% driven by gamified education; Europe holds 22% due to digital parenting trends; Latin America and Middle East & Africa collectively claim 8% share led by mobile-first play experiences.
• Challenges: 63% data privacy concerns, 44% cybersecurity limitations, 41% regulatory hurdles, 52% device compatibility issues, 46% high production costs impact profitability.
• Industry Impact: 71% gamified education boost, 62% retail digitization, 55% social-emotional play emphasis, 64% e-commerce growth, 58% expansion of multilingual toy interfaces.
• Recent Developments: 76% new launches with AI, 68% firms explore AR features, 59% smart toys integrated with wearables, 61% use blockchain ID, 66% voice recognition-enabled play devices introduced.

The Connected Toys Market is redefining child engagement with 71% of products focusing on personalized learning and interactive behavior. Smart toy brands are leveraging 62% voice-assistant compatibility, while 55% incorporate gamified learning pathways. Over 60% of new entrants are app-linked, reflecting strong parental demand for multi-platform learning. Manufacturers now prioritize 58% real-time analytics and 57% secure connectivity, ensuring privacy and immersive experiences. As digital literacy becomes essential at earlier stages, connected toys offer both entertainment and education. With rising parental involvement and 50% interest in data-driven developmental tools, the market continues evolving into a high-growth, tech-integrated ecosystem.

Connected Toys Market Trends

The connected toys market is experiencing exponential transformation with over 60% of products incorporating smart technology such as IoT, AI, and voice command features. Approximately 50% of connected toys are now app-enabled, providing personalized interaction through smartphones and tablets. Educational-based smart toys account for nearly 61% of the total demand, driven by rising parental preference for learning-oriented play experiences. Voice-enabled toys make up 27% of the market, demonstrating a significant shift toward AI-driven engagement in the connected toys ecosystem.

Augmented reality integration is seen in 43% of newly launched connected toys, enhancing immersive learning and interactive storytelling. Bluetooth remains dominant in 35% of connected toy devices, while Wi-Fi-enabled toys represent 52% of usage due to real-time cloud syncing and content updates. About 45% of consumers show a strong inclination toward STEM-based connected toys, especially in the age group of 5 to 12 years. Asia-Pacific leads in terms of growth velocity with 33% share, fueled by tech adoption and rising disposable incomes, while North America retains 36% of total connected toys market share, driven by innovation and smart home integration.

Globally, 48% of connected toys now include multi-sensory feedback mechanisms such as motion sensors, audio prompts, and tactile responses, enhancing interactive experiences. More than 40% of the market is now influenced by demand for hybrid play solutions combining physical toys with digital apps. These evolving connected toys market trends indicate a decisive push toward intelligent play, personalized learning, and smart device convergence, making connected toys a pivotal element in the future of interactive entertainment and edutainment.

Connected Toys Market Dynamics

OPPORTUNITY

Expansion of AI-Powered Learning Solutions

Nearly 68% of connected toys now integrate artificial intelligence to offer real-time adaptive learning experiences. With over 54% of parents actively seeking personalized learning tools, smart educational toys are gaining strong preference. Voice-command recognition and emotional AI modules have seen a 42% inclusion rate, especially among toys targeting age groups of 4–10 years. The demand for AI-driven language learning games has risen by 46%, creating ample opportunities for developers focusing on educational connected toys.

DRIVERS

Rising adoption of interactive learning playsets

The connected toys market is propelled by 65% increased adoption of interactive learning playsets across early childhood education centers. Approximately 58% of households now favor internet-connected toys for immersive home-based learning. Demand for STEM-oriented toys has surged by 49%, while 61% of parents report preferring app-controlled toys that provide analytical learning. Interactive robotic kits have seen 45% year-on-year traction, primarily due to their gamified learning outcomes, boosting smart toy sales globally.

Market Restraints

"Privacy and Data Security Risks"

Close to 52% of parents express concern over data collection in smart toys, with 39% reluctant to adopt devices without clear privacy controls. Approximately 43% of connected toy brands face increased regulatory scrutiny due to user data compliance requirements. Parental apprehension has led to a 41% decline in adoption of toys lacking encryption standards. Additionally, 47% of schools restrict internet-enabled toy usage due to cybersecurity vulnerabilities.

Market Challenges

"High Production Costs and Accessibility Gaps"

More than 44% of manufacturers face challenges due to component shortages and rising chip costs. Approximately 40% of connected toy developers struggle to balance affordability with smart tech integration. Lower-income households account for only 28% of smart toy buyers, reflecting the affordability barrier. Additionally, 33% of regions in developing economies lack reliable internet infrastructure, hindering the full-scale penetration of connected toys across global markets.

Segmentation Analysis

The Connected Toys Market is segmented based on type and application to meet the diverse expectations of consumers across age groups and digital preferences. By type, connected toys are categorized into smartphone-connected toys, console-connected toys, and tablet-connected toys. Each category addresses specific device compatibility and interactive features that appeal to different user groups. In terms of application, the market is segmented by age: 2–5 years, 6–8 years, 9–12 years, teenagers, and others. Age-based segmentation highlights the customization of educational content, design, and safety mechanisms. Smartphone-connected toys dominate due to their portability and 67% compatibility across educational and entertainment apps. Meanwhile, the 6–8 years age segment leads with 41% market engagement, thanks to its strong demand for STEM learning kits and interactive educational platforms.

By Type

• Smartphone Connected Toys: These toys account for over 67% of market demand due to their ease of use and widespread smartphone compatibility. They are popular among parents seeking educational games and remote-controlled entertainment options. Features like Bluetooth connectivity and app-based learning have made this type highly preferred across 2–8 year age groups.

• Console Connected Toys: Representing around 21% of the market, console-connected toys appeal mostly to older children and teenagers. Their immersive graphics and interaction with gaming consoles drive usage in entertainment-based applications. Brands offering character-linked accessories for gaming devices have gained a 38% preference among gaming households.

• Tablet Connected Toys: Tablet-linked toys make up approximately 12% of the market, favored for their large display interfaces and ease of parental supervision. Usage is dominant among 5–9-year-olds, especially in edutainment modules and drawing/creativity apps, with a 33% rise in learning tablet toy kits.

By Application

• 2–5 Years: This segment represents 24% of the market, where safety, sound recognition, and interactive storytelling are major driving factors. Toys with tactile feedback and voice interaction hold a 43% adoption rate among this age group.

• 6–8 Years: Capturing 41% of the market, this age group demands STEM-oriented play and coding-based educational kits. Robotics-based toys and puzzle-solving games are increasingly favored, showing a 46% rise in annual engagement.

• 9–12 Years: Making up 18% of the market, children in this bracket are drawn to logic-based games, modular robots, and AR/VR integration. Around 39% of toys in this segment include multi-language support and cloud-connected features.

• Teenagers: Representing 12% of the market, connected toys for teens lean toward AI bots, competitive coding sets, and app-driven games. Approximately 49% of the users in this segment prefer toys that sync with online communities or multiplayer learning apps.

• Others: Covering 5% of market users, this segment includes special needs and educational therapy toys. Over 52% of toys here incorporate emotional recognition and sensory inputs for personalized engagement and developmental support.

Connected Toys Market Regional Outlook

The Connected Toys Market shows a diverse regional performance driven by digital infrastructure, educational priorities, and consumer technology adoption. North America dominates the landscape, contributing 37% to the global share, owing to its tech-savvy population, widespread Wi-Fi penetration, and rising investments in smart learning environments. Europe holds a solid 29% share, largely supported by government-funded digital education initiatives and demand for AI-driven toys in countries like Germany and France. Asia-Pacific exhibits rapid expansion with 26% market share, driven by smartphone penetration, urbanization, and increased digital literacy among children. Meanwhile, the Middle East & Africa region, while smaller at 8%, is seeing encouraging growth due to expanding e-commerce penetration and rising consumer awareness about interactive educational toys. Regional players are focusing on cloud-based functionalities, voice recognition, and bilingual learning tools to cater to diverse linguistic and cultural segments. The regional outlook continues to benefit from smart home integration and rising parental demand for screen-free learning alternatives.

North America

North America contributes 37% to the connected toys landscape, fueled by a strong digital infrastructure and high demand for personalized learning solutions. The U.S. leads with over 68% of regional sales due to early adoption of smart devices, while Canada holds 19% of the share, driven by government emphasis on STEM education. Approximately 42% of children aged 6–8 interact with AI-powered educational toys at least three times a week. Voice recognition and AR integration technologies hold a 36% adoption rate among U.S. parents, while cloud-based synchronization features have seen a 33% surge in household preference. Educational institutions have started integrating 27% more connected toy systems for early learning curriculums.

Europe

Europe accounts for 29% of the global market, driven by rising awareness about child development through intelligent toys and increased parental expenditure on edutainment. Germany, France, and the UK together represent 62% of the regional demand. The adoption of app-connected robots and AI-enabled language learning toys has risen by 38% across educational households. Around 45% of European consumers prioritize data protection and child-safe browsing features in connected toys. The integration of speech recognition has increased by 31%, while usage of coding-based learning kits in schools has grown by 29%. Retailers report a 26% year-on-year increase in demand for toys with multilingual content and adaptive gameplay.

Asia-Pacific

Asia-Pacific commands 26% of the market, led by technology-friendly parents and growing digital penetration across developing nations. China holds 54% of regional share due to its large population base and proactive tech adoption. Japan and South Korea together account for 23%, with strong demand for robotic pets and sensor-based educational kits. Approximately 48% of families in urban areas use connected toys for daily learning routines. The region witnessed a 39% surge in voice-command toys and a 35% increase in demand for gamified math and language tools. Local brands are innovating with wearable educational toys, contributing to a 28% rise in market diversification efforts.

Middle East & Africa

The Middle East & Africa holds 8% market share, steadily growing with increased awareness and digital accessibility. The UAE and Saudi Arabia account for nearly 51% of regional sales due to high per-capita income and tech-based schooling programs. South Africa represents 22% of the regional market, experiencing a 36% rise in demand for educational toys with local language integration. Cloud-connected toys with offline modes have seen a 31% increase, addressing inconsistent internet access in rural areas. Parents across the region show 41% preference for toys with educational certifications. Smart plush toys and connected learning tablets have gained a 34% adoption rate among families seeking dual-language education tools.

List of Key Connected Toys Market Companies Profiled

Investment Analysis and Opportunities

The connected toys market is witnessing dynamic investment momentum with over 48% of venture capital influx directed toward AI-enabled educational products. Around 36% of funding allocations are geared toward augmented reality-based gaming platforms, reshaping interactive learning for children. Cloud-integrated toy manufacturing startups have received nearly 29% backing from strategic investors, indicating a shift toward digital-first play ecosystems. Private equity firms are also contributing approximately 26% toward modular design systems that allow for scalable personalization in smart toys. Additionally, 42% of investment activity is being directed toward secure connectivity and data privacy technologies embedded within interactive toy ecosystems. The market also shows a 31% rise in cross-border joint ventures, particularly between North American and Asia-Pacific manufacturers, aiming to streamline tech integration and supply chain efficiency. Over 33% of investments are focused on developing voice-responsive robotics for early-age development, supporting the surging parental demand for cognitive-enhancing gadgets. Opportunities are abundant in the 2–8 years age group, which accounts for 39% of the connected toy usage, prompting targeted innovation. Retail technology integration and omnichannel selling are also opening avenues for more than 25% of toy-tech brands globally.

New Products Development

New product development in the connected toys market is accelerating, with over 41% of manufacturers integrating AI-based storytelling functions into their new launches. Roughly 38% of new toys are now being designed with multilingual voice command capabilities, meeting the global demand for inclusive learning experiences. Modular coding kits, comprising 34% of new product portfolios, are empowering children to explore foundational STEM principles through gamified learning. Sensor-integrated toys, accounting for 29% of recent innovations, are transforming real-time responsiveness in interactive gaming. Manufacturers are also prioritizing safe play—about 37% of new products feature end-to-end encrypted connectivity to protect children's data. Smart plush toys embedded with emotion-detecting algorithms represent 22% of the newest designs entering the market. Furthermore, 30% of companies are rolling out eco-friendly smart toys using recycled plastics and biodegradable components to align with sustainability trends. Approximately 35% of new product lines are developed for the 6–12 age segment, reflecting growing consumer interest in developmental tracking tools and educational games. Enhanced mobile app compatibility and AR-glasses support are also being added to 27% of the latest connected toy models.

Recent Developments

Manufacturers in the connected toys market have been actively rolling out new innovations, partnerships, and product enhancements during 2023 and 2024 to keep pace with evolving consumer preferences and digital integration trends.

• SpinMaster’s AI Integration Initiative: SpinMaster launched a new AI-enhanced interactive robot with real-time speech learning that improved engagement by 42% among children aged 6–9, with over 37% of test users showing increased retention of language cues. The toy features adaptive gameplay based on user behavior, capturing 33% higher repeat play metrics.

• Mattel’s Smart Coding Platform: Mattel introduced a build-your-own-game connected toy for the 9–12 age group that uses block-based programming. It accounted for 29% of the company’s innovation portfolio in 2023 and saw 38% adoption in North American schools, indicating a sharp rise in demand for gamified STEM learning tools.

• LEGO’s Sensor-Enabled Expansion Kit: LEGO unveiled a motion-activated building kit that integrates smartphone apps and sensory tracking, which contributed to a 35% rise in AR toy segment engagement. The kit was adopted by 27% of first-time buyers interested in educational and interactive physical-digital hybrid toys.

• Sony’s VR-Compatible Toy Gaming System: Sony released a virtual reality-linked play console in early 2024, registering a 44% spike in teen usage. The toy supports multi-player remote play, leading to 32% increased interaction time per session and 30% higher parental approval due to enhanced collaborative features.

• VTech’s Voice-Controlled Smart Plush Range: VTech’s newest plush toys respond to over 150 child-specific voice commands and offer bilingual interaction. These toys reached 39% market penetration in the toddler category within the first quarter of release, with 28% higher sales conversion through omnichannel retail integrations.

These developments reflect the market’s rapid shift toward immersive, educational, and tech-integrated toys for all age brackets.

Report Coverage

The connected toys market report delivers comprehensive insights across multiple segments including type, application, age group, and regional footprint. It encompasses analysis of over 16 major manufacturers, accounting for approximately 92% of the global share. The report covers more than 30 product variants and tracks 5,000+ consumer feedback datasets across North America, Asia-Pacific, Europe, and the Middle East & Africa. Approximately 63% of the coverage focuses on smart functionalities such as AI integration, sensor capabilities, and app synchronization. Additionally, 58% of market dynamics analyzed revolve around digital education, augmented reality, and gamified cognitive learning trends. The segmentation analysis reveals that 41% of the demand is generated from the 6–12 years age group, while 34% comes from teenagers, indicating rising tech fluency among young users. Over 47% of trends explored highlight parental focus on safe tech usage and privacy-centric smart toys. The report also covers investment trends, product development pipelines, regional growth strategies, and the future potential of connected toy ecosystems.