Connected Toys Market Outlook and Forecast
The Connected Toys Market is rapidly evolving as digital connectivity, artificial intelligence, and interactive technologies reshape how children engage with play. Connected toys—integrated with Wi-Fi, Bluetooth, sensors, and mobile applications—are redefining entertainment by combining learning, gaming, and social interaction into a unified digital experience. As consumer demand shifts toward personalized and immersive play, manufacturers are increasingly investing in smart ecosystems that enhance user engagement and educational value.
2025 Market Size: USD 13.93 Billion
Projected 2035 Market Size: USD 89.91 Billion
Growth Forecasts (2026–2035): 20.5%
Regionally, North America continues to dominate the connected toys market due to high digital adoption, strong purchasing power, and early integration of smart technologies in children's products. Europe follows closely, driven by stringent safety regulations and rising interest in educational toys. Meanwhile, Asia Pacific is emerging as the fastest-growing region, fueled by increasing smartphone penetration, expanding middle-class populations, and rising awareness of digital learning tools across countries like China, India, and Japan.
Segment-wise, the smartphones segment held a dominant 40.11% share of the market in 2025, highlighting the importance of mobile device integration in connected toy ecosystems. Mobile-enabled toys allow seamless interaction, real-time updates, and enhanced gameplay experiences. Additionally, the 9–12 years segment captured a 47.69% share, indicating a strong demand among pre-teens who seek interactive, tech-enabled play that blends entertainment with learning.
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Top Market Trends Transforming the Connected Toys Industry
1. Integration of Artificial Intelligence and Voice Recognition
AI-powered connected toys are gaining traction as they offer personalized interactions, adaptive learning, and voice-based communication. Toys embedded with AI can respond to user behavior, making playtime more engaging and educational. Recent developments include smart dolls and robots that can hold conversations, recognize emotions, and tailor content based on user preferences.
2. Growing Demand for Educational and STEM-Based Toys
Parents are increasingly prioritizing educational value when purchasing toys. This has led to a surge in demand for STEM-based connected toys that promote coding, problem-solving, and critical thinking skills. Companies are launching products that combine gaming with curriculum-based learning, helping children develop essential skills while enjoying immersive experiences.
3. Expansion of IoT and App-Connected Ecosystems
The Internet of Things (IoT) is playing a crucial role in expanding the functionality of connected toys. Toys can now connect to mobile apps, cloud platforms, and other smart devices, enabling features such as remote monitoring, content updates, and multiplayer interaction. This interconnected ecosystem enhances user engagement and creates new revenue streams through subscriptions and in-app purchases.
4. Rising Focus on Data Privacy and Cybersecurity
As connected toys collect and process user data, concerns around privacy and security are becoming more prominent. Regulatory bodies and consumers are demanding stricter data protection measures. Manufacturers are investing in secure platforms, encryption technologies, and compliance frameworks to ensure safe usage, especially for children.
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Recent Company Developments in the Connected Toys Market
The connected toys market is highly competitive, with both established players and emerging startups driving innovation through product launches, partnerships, and technological advancements. Over the past year, several key developments have shaped the competitive landscape:
1. Mattel
Mattel has expanded its connected toy portfolio by integrating AI and voice-enabled features into its popular toy lines. The company has also focused on enhancing digital engagement through companion mobile applications.
2. Hasbro
Hasbro has invested in augmented reality (AR) and app-based gaming experiences, enabling users to interact with physical toys through digital platforms. Strategic collaborations with tech companies have strengthened its innovation pipeline.
3. LEGO Group
LEGO continues to innovate with coding kits and interactive playsets that blend physical construction with digital gameplay. Its focus on STEM education has positioned it as a leader in educational connected toys.
4. VTech Holdings
VTech has introduced new learning-focused connected toys equipped with interactive screens, voice recognition, and parental control features, catering to younger age groups.
5. Spin Master
Spin Master has launched smart robotic toys and connected gaming platforms that emphasize creativity and real-time interaction. The company is also exploring subscription-based content models.
6. WowWee Group
WowWee has expanded its portfolio of robotic companions and app-controlled toys, incorporating AI-driven features to enhance user engagement and personalization.
7. Sphero
Sphero continues to lead in STEM robotics by introducing programmable toys that teach coding and engineering concepts through interactive play.
8. Anki (revived technologies)
With renewed interest in AI robotics, Anki-inspired technologies are making a comeback through new players focusing on emotional AI and companion robots.
9. Sony Interactive Entertainment
Sony has explored connected toy ecosystems that integrate gaming consoles with physical toys, creating hybrid entertainment experiences.
10. Xiaomi
Xiaomi has entered the connected toys segment with affordable smart toys, leveraging its IoT ecosystem to provide seamless connectivity and accessibility.
These developments highlight the increasing convergence of technology, entertainment, and education in the connected toys market. Companies are focusing on innovation, strategic partnerships, and digital integration to maintain a competitive edge.
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