Market Overview:
The smart toys market is experiencing rapid growth, driven by growing integration of stem and educational curricula, technological breakthroughs in AI and machine learning, and rising household spending and e-commerce expansion. According to IMARC Group’s latest research publication, “Smart Toys Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034”, The global smart toys market size reached USD 20.6 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 61.0 Billion by 2034, exhibiting a growth rate (CAGR) of 12.46% during 2026-2034.
This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.
Download a sample PDF of this report: https://www.imarcgroup.com/smart-toys-market/requestsample
Our report includes:
- Market Dynamics
- Market Trends And Market Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Growth Factors in the Smart Toys Market
- Growing Integration of STEM and Educational Curricula
The aggressive push for Science, Technology, Engineering, and Mathematics (STEM) education is a primary driver for the smart toys industry. Parents and educational institutions are increasingly viewing play as a critical vehicle for skill acquisition, moving beyond simple entertainment. Governments worldwide are reinforcing this shift; for example, the Ministry of Education in India organized Toycathon to crowdsource innovative educational designs, while the United States has seen a surge in schools integrating programmable robots into standard lesson plans. This demand is substantiated by the high adoption rate of robotics kits and coding games, which are designed to teach complex concepts like spatial thinking and computational logic to children as young as six. Market data indicates that educational robots now represent a dominant segment of the sector, as families prioritize high-value products that promise to build future-ready technical competencies through interactive, hands-on scientific experimentation and physical problem-solving tasks.
- Technological Breakthroughs in AI and Machine Learning
The evolution of Artificial Intelligence (AI) and Natural Language Processing (NLP) has fundamentally transformed the capabilities of modern playthings. Contemporary smart toys are no longer limited to pre-recorded responses; they now utilize adaptive learning algorithms to evolve alongside a child’s developmental stage. Key industry players like Mattel and Lego are actively integrating these technologies to create "phygital" experiences that bridge physical bricks with digital intelligence. For instance, the new Lego Smart Brick features integrated sensors, speakers, and lights that allow an entire construction set to function as a responsive, open system. Similarly, AI-powered companion robots now offer facial recognition and emotional intelligence, allowing them to adjust their personality based on a user’s mood. This technical sophistication encourages longer product lifecycles, as toys can receive over-the-air software updates and new content, maintaining their relevance and engagement levels far longer than traditional, static toy models.
- Rising Household Spending and E-commerce Expansion
Increased consumer purchasing power, particularly in emerging economies and urban centers, has led to a significant uptick in spending on premium, tech-driven toys. Parents are demonstrating a higher willingness to invest in high-tech educational tools that support cognitive development. This growth is further accelerated by the rapid expansion of online retail channels, which now account for a substantial portion of global toy sales. In the United States, approximately 30.6% of parents opt for online channels to purchase toys, benefiting from wider selections and home delivery. E-commerce platforms allow specialty brands and startups to reach a global audience without the need for extensive physical storefronts. Additionally, the rise of "play-as-a-service" subscription models provides families with curated, flexible access to the latest smart technologies, ensuring a steady stream of revenue for manufacturers while making expensive, high-end robotic toys more accessible through monthly or quarterly distribution programs.
Key Trends in the Smart Toys Market
- AI-Driven Personalized Companionship
A major shift is occurring as smart toys move from being passive tools to becoming active, personalized companions. These toys utilize advanced AI to understand and respond to a child’s specific interests, solving puzzles together or telling stories that evolve based on past interactions. A prominent real-world example is the TCL AiMe robot, which functions as a family companion by focusing on emotional recognition and adapting its "looks" and responses to different family members. This trend, often referred to as "AI Loves (to) Play," emphasizes deep emotional bonds rather than simple mechanical movement. These devices can help establish sleep habits, manage social anxiety, or provide companionship in single-child households. By learning a child's preferences over time, these AI companions offer a unique, customized play experience that traditional toys cannot replicate, effectively growing and "aging up" with the user to provide long-term developmental support.
- Screen-Free Phygital Interaction
Despite the high-tech nature of smart toys, there is a growing movement toward "screen-free" play that still utilizes advanced digital connectivity. This trend focuses on physical-first experiences where technology acts as an invisible assistant rather than a primary interface. For example, modular building sets now use RFID (Radio Frequency Identification) and Bluetooth to trigger sounds or actions in the physical world without requiring the child to look at a tablet or smartphone. These "tangible user interfaces" allow children to manipulate real-world objects—like rotating a physical block to change a digital character's environment—to maintain focus on tactile, 3D play. Companies are increasingly designing toys with "softer aesthetics" and muted palettes to integrate better into modern homes, moving away from the loud, screen-heavy gadgets of previous years. This approach addresses parental concerns regarding excessive screen time while still providing the benefits of interactive, tech-enhanced learning.
- Eco-Conscious and Sustainable Smart Design
Sustainability is no longer an afterthought but a core design philosophy in the 2026 smart toys market. Manufacturers are increasingly utilizing eco-friendly bioplastics, such as 100% recyclable wheat-straw materials, to house complex electronic components. This trend is driven by a 40% year-on-year increase in consumer demand for responsibly made products. Real-world applications include modular toys designed for longevity; instead of discarding a toy when a child outgrows it, the components can be rebuilt, expanded, or updated with new sensors and modules. Brands like Chengji have introduced pre-stocked lines of bio-plastic interactive toys that meet stringent international environmental regulations. This shift towards "visible sustainability" also includes packaging reduction and the use of solar-powered sensors, aligning the high-tech toy industry with global efforts toward a circular economy. Families are now seeking products that reflect their ethical values without sacrificing the interactive and educational benefits of modern smart technology.
Leading Companies Operating in the Global Smart Toys Industry:
- GmbH
- Kreyonic Inc.
- LeapFrog Enterprises Inc. (VTech Holdings Limited)
- Mattel Inc.
- Pillar Learning
- PlayShifu
- Primo Toys
- ROYBI Robot
- The Lego Group
- WowWee Group Limited
Smart Toys Market Report Segmentation:
By Product:
- Robots
- Interactive Games
- Educational Toys
Interactive Games dominate the smart toys market, accounting for 45% of the share in 2023 due to their engaging and educational nature.
By Technology:
- Wi-Fi
- Bluetooth
- Others
Bluetooth holds the largest market share among technologies, driven by its widespread adoption and ability to enhance interactive experiences in smart toys.
By Interfacing Device:
- Smartphone Connected
- Tablet-Connected
- Others
Smartphone-Connected devices represent the leading segment, accounting for over 50% in 2023, thanks to their advanced connectivity features and portability.
By Distribution Channel:
- Supermarkets and Hypermarkets
- Online Stores
- Specialty Stores
- Others
Online Stores exhibit clear dominance in distribution channels, reflecting consumer preference for convenience and variety in e-commerce platforms.
By End User:
- Toddlers
- Pre-Schoolers
- School-going
- Stripling
Toddlers dominate the market as the largest end user segment, driven by the demand for educational toys that support early learning and development.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America leads the smart toys market, being the largest regional market for smart toys.
Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.
About Us:
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-201971-6302
