Connected Toys Market By Interaction Type (Smart Toys, Voice-Interactive Toys, Screen-Free Connected Toys); By Age Group (Toddlers, Preschoolers, Grade Schoolers, Teenagers); By Connectivity Technology (Bluetooth, Wi-Fi, Cellular/LTE, NFC & RFID); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Connected Toys Market will expand at a CAGR of 15.1%, valued at approximately USD 8.2 billion in 2024 and projected to hit USD 18.3 billion by 2030, confirms Strategic Market Research.

 

Connected toys are interactive playthings embedded with technologies such as sensors, Bluetooth, Wi- Fi, AI, and IoT platforms. These toys can connect with mobile apps, cloud services, and other smart devices, enabling personalized experiences that go beyond traditional play. Between 2024 and 2030, their role extends far beyond entertainment — they’re emerging as tools for early learning, developmental tracking, and even therapeutic engagement .

 

Several forces are shaping this market. First, digital-native parents are more open to tech-driven play solutions that combine education with fun. Second, the rise of STEM-based learning has created demand for toys that teach coding, robotics, and problem-solving skills from an early age. At the same time, concerns over screen time are pushing parents toward toys that encourage interactive, physical play blended with digital content .

 

Regulation is another piece of the puzzle. Authorities in North America and Europe are tightening rules around data privacy, child safety, and secure connectivity. Toy makers are now expected to comply with standards like GDPR and COPPA, which directly shape how these toys collect, process, and store user data.

 

Stakeholders in this ecosystem are diverse. Toy manufacturers like LEGO and Hasbro are integrating AI features into classic playsets. Tech companies are supplying cloud infrastructure, voice assistants, and security layers. Parents and educators are driving demand for toys that improve learning outcomes. Meanwhile, investors are betting on startups blending robotics and gamification, particularly in Asia-Pacific, where adoption is accelerating.

 

The shift is clear: connected toys aren’t just about fun anymore. They’re about blending play with purpose — whether that means teaching a five-year-old to code, helping a child with autism practice social interaction, or giving parents real-time feedback on developmental milestones.

 

Market Segmentation And Forecast Scope

The connected toys market is evolving fast, but beneath the innovation lies a structured segmentation that reflects how brands compete — and how families buy. The market breaks down across four key dimensions: By Interaction Type, By Age Group, By Connectivity Technology, and By Region .

By Interaction Type

• Smart Toys (App-enabled, Sensor-based)
  These dominate the category. Think AI-powered dolls, AR-enhanced puzzles, and coding robots. These toys often connect with mobile apps to enable updates, game expansions, or learning analytics.

• Voice-Interactive Toys (AI Assistants, Smart Speakers for Kids)
  Voice-enabled toys are gaining traction, especially in the 3–7 age group. They use NLP (natural language processing) to hold simple conversations, answer questions, and tell stories. Integration with platforms like Alexa Kids or Google Assistant is growing.

• Screen-Free Connected Toys (Wearables, IoT -enabled Plush Toys)
  These toys provide connected experiences without a smartphone screen — ideal for parents limiting screen exposure. Some use motion sensors, touch sensitivity, or haptic feedback to engage children physically.

App-connected smart toys currently lead with over 52% share of the market in 2024, but voice-interactive toys are projected to grow fastest through 2030 due to AI accessibility and ease of use for non-readers.

 

By Age Group

• Toddlers (0–3 years)
  This segment is relatively niche but growing. Most products here focus on sensory development and interactive sound/light play. Connected functions are basic — often limited to music or motion sensors.

• Preschoolers (3–5 years)
  A highly active segment. These kids can use voice commands, mimic instructions, and interact with toys in creative ways. Connected storybooks, AI pets, and STEM starter kits dominate.

• Grade Schoolers (6–12 years)
  This is where connected toys go full throttle. Robotics kits, AR-enhanced learning games, and app-based building sets are in high demand. Many products teach coding, electronics, and math.

• Teenagers (13+ years)
  While not a core target, teens engage with programmable drones, AI gaming bots, and VR-based educational games.

The 6–12 age group is the largest, accounting for over 41% of connected toy sales in 2024.

 

By Connectivity Technology

• Bluetooth
  Used in short-range toys like wearables or musical instruments. It’s power-efficient but limited in scope.

• Wi-Fi
  Enables cloud sync, multiplayer gaming, and real-time learning analytics. Found in advanced toys like smart speakers or robotics sets.

• Cellular / LTE (Emerging)
  Still rare, but a few toys offer SIM card-based connectivity for remote play or voice calling.

• NFC & RFID
  Used mostly in collectible toys or learning ecosystems that trigger specific content when paired with physical tokens.

Wi-Fi-connected toys dominate in terms of complexity and market share, while NFC is seeing niche growth in interactive books and playsets.

 

By Region

The regional breakdown follows distinct maturity curves:

• North America is the largest market thanks to early tech adoption and high per-child toy spending.

• Europe focuses heavily on regulatory-compliant, safety-first products.

• Asia Pacific is growing fastest — fueled by rising middle-class tech spending and the popularity of edutainment in countries like China, South Korea, and Japan.

• Latin America and MEA are catching up through low-cost, app-connected products distributed via mobile-first ecosystems.

 

Scope Note: This segmentation isn’t just theoretical — it drives product strategy. For example, some brands now release different versions of the same toy for Bluetooth (cost-effective) and Wi-Fi (premium analytics). Similarly, age-specific content bundles are helping brands tap into recurring revenue via subscriptions.

 

Market Trends And Innovation Landscape

The connected toys market is no longer about novelty — it’s about differentiation through interactivity, adaptability, and data-smart design. Over the past few years, a few clear trends have emerged that are reshaping how products are developed, marketed, and used at home or in schools.

AI is Driving Contextual Play

We’re seeing a shift from scripted responses to dynamic, learning-based play. New connected toys now feature AI models that adapt to a child’s preferences, learning pace, and even mood.

Some toys now recognize emotional cues based on tone or play behavior. Others evolve through usage, unlocking new skills or games over time.

An executive at a European edtech startup said, “Our connected plush toy starts off as a story companion. But by month three, it’s leading mindfulness exercises for kids struggling with attention span.”

 

Voice Tech is Becoming the New Interface

Instead of relying on screens or buttons, a growing class of connected toys is using voice-first interfaces. It’s especially effective for pre-literate children (ages 3–6), enabling them to control toys through simple verbal commands.

Manufacturers are integrating voice assistants with kid-specific NLP engines — ones that can handle mispronunciations or simplified phrasing.

More importantly, toy companies are developing closed-loop ecosystems where responses don’t require an external platform like Alexa or Google — a move aimed at tightening privacy and parental trust.

 

Gamified STEM Learning is Going Mainstream

Coding kits, smart construction toys, and AI-based learning games have gained mainstream appeal. And it’s not just about learning Java or Python.

New toys now teach logic, pattern recognition, and cause-effect modeling — often disguised as interactive games or challenges. Some offer tiered content levels that grow with the child.

This trend is particularly strong in Asia-Pacific, where academic competitiveness is driving demand for early-tech exposure in elementary years.

 

Privacy-By-Design is No Longer Optional

As toys become smarter, they also become data collectors. Parents — and regulators — are pushing back.

Toys now need to meet stringent privacy and data governance standards, especially in Europe (GDPR), the U.S. (COPPA), and growing parts of Asia.

New product design focuses on local data processing, opt-in voice recording, encrypted communication, and time-bound data retention .

To be honest, toys that can’t clearly explain where data goes — and why — are losing shelf space fast.

 

Augmented Reality is Reinventing Traditional Play

AR is helping breathe life into traditional physical toys — especially books, puzzles, and figurines. Children scan a page, and a 3D character appears. Or a real-world object triggers a digital narrative.

Some toys also integrate AR overlays for physical games, merging the tactile and digital in ways that keep kids engaged longer without screen fatigue.

This hybrid format is opening up new content licensing opportunities — think Marvel AR figurines or Disney character-led AR dance challenges.

 

Subscription Models Are Gaining Traction

Much like streaming platforms, connected toy ecosystems are moving toward recurring revenue models. Parents now buy the hardware once, then pay monthly for new stories, games, or lessons.

Some of these platforms even use usage analytics to recommend content or adjust learning levels.

This may lead to lower upfront costs and better monetization, but also creates pressure on developers to keep content fresh and relevant.

 

Bottom line: Innovation in connected toys is no longer about flashy features. It’s about designing adaptive ecosystems — ones that are personalized, private, and purposeful. The real winners? Brands that turn toys into trusted learning companions — not just one-time gadgets.

 

Competitive Intelligence And Benchmarking

The connected toys market sits at the intersection of play, pedagogy, and technology — and the companies competing here reflect that hybrid DNA. While traditional toy giants still dominate global shelf space, they’re now competing head-to-head with edtech startups, consumer electronics firms, and even content streaming platforms. What sets the winners apart? Not just sensors or flashy designs — but ecosystems, trust, and content that scales.

LEGO Group

Still one of the most trusted names in toys, LEGO has fully embraced digital play through its LEGO Education and SPIKE Prime platforms. These kits blend classic brick-building with coding interfaces via app-based environments.

LEGO’s strength lies in modular design — letting kids build hardware and then bring it to life with simple drag-and-drop coding. They’ve also formed partnerships with Apple and Google Classroom to integrate their platforms into STEM curriculums.

LEGO isn’t trying to out-tech startups — it’s winning by combining physical engagement with educational outcomes teachers and parents can trust.

 

Hasbro

Hasbro has evolved beyond toy shelves by licensing connected versions of its most popular franchises. It has invested in AR board games, voice-controlled characters, and interactive plush toys that sync with companion apps.

In recent years, Hasbro has partnered with several AI developers to embed machine learning models in dolls and figures — enabling them to respond differently depending on a child’s past interactions.

Their competitive edge? A huge IP portfolio. They can roll out connected versions of brands like Transformers or My Little Pony faster than startups can launch new characters.

 

Sphero

A standout in the edtech space, Sphero focuses on coding-enabled robots designed for classrooms and home learning. What started as a remote-controlled ball has now become a platform for teaching STEM skills .

Their robots — like the Bolt and RVR — are programmable in both block-based and JavaScript environments. They’re used in over 40,000 schools worldwide and are increasingly adopted for after-school programs.

Sphero’s strength lies in its educational partnerships and teacher support systems — including lesson plans and assessment tools.

 

VTech Holdings

VTech has carved out a massive niche in screen-free, sensor-based learning toys. Their products are often voice-enabled, music-integrated, and aimed at preschool development.

VTech’s advantage is its price-accessibility — dominating in both developed and emerging markets. They’ve built trust over decades in the early-childhood space and now offer toys with limited AI capabilities that keep privacy risk low.

They also lead in integrating parent dashboards that track developmental milestones based on usage — a key selling point for educators and caregivers.

 

Anki (acquired IP, now fragmented)

Anki’s robot Cozmo and its follow-up Vector became cult hits for combining cuteness, AI, and emotion. While the company shut down in 2019, its assets were acquired and repurposed by several startups, many of which now use Cozmo’s IP to build AI companions for neurodiverse children and senior care.

The brand still represents what many in the market aim for: AI with personality, emotional response, and long-term engagement .

 

Mattel

Mattel has taken a cautious but steady path into connected play. Its Fisher-Price Smart Cycle and Barbie Hello Dreamhouse introduced early forms of gamified fitness and voice-based home control. The company is now focused on augmenting popular dolls and playsets with companion apps that don’t require always-on connectivity.

They’ve also doubled down on content licensing, bringing interactive Netflix series and AR storybooks into their IP ecosystem.

Mattel’s strategy? Augmented play — not fully digital, but enough to keep products relevant in a hybrid toy world.

 

Emerging Players Worth Watching

• PlayShifu (India): Specializes in AR-enabled educational kits; growing fast in Asia and North America.

• Miko : AI-powered robots with conversational skills tailored for kids aged 5–10.

• Tech Will Save Us (UK): DIY electronic kits focused on STEM; popular in after-school coding clubs .

 

Competitive Landscape Snapshot:

• LEGO and Sphero lead in structured, curriculum-based ecosystems.

• Hasbro and Mattel excel in brand integration and storytelling through interactivity.

• VTech dominates the value segment — balancing tech with simplicity and price.

• Startups are driving personalization, AI interactivity, and emotion-centric design .

The competitive frontier isn’t just who builds the smartest toy. It’s who builds the most trusted relationship with the parent — and the most sustained engagement with the child .

 

Regional Landscape And Adoption Outlook

The connected toys market is global — but the motivations, purchasing power, and regulatory environments vary widely across regions. Some markets are driven by digital learning mandates. Others are led by brand nostalgia or pure novelty. Let’s break down where adoption stands today, and where it’s heading next.

North America

North America remains the largest and most mature connected toys market. Parents here are early adopters of educational tech, and the region has strong infrastructure to support app-based and cloud-connected play.

The U.S. is particularly driven by:

• High per-child spend on learning toys

• Broad integration of connected play into K–6 classrooms

• A consumer base familiar with AI and voice interfaces

However, COPPA compliance and concerns over child data security are shaping how products are designed and sold. Toy makers must show transparency in data handling, voice recording, and third-party access — or risk getting pulled off shelves.

There’s also strong traction in smart toy subscriptions, especially among millennial parents looking for recurring content tied to developmental milestones.

Example: A New York-based preschool switched its analog play kits for monthly connected learning bundles, citing higher engagement and parent satisfaction.

 

Europe

Europe mirrors North America in many ways, but with even more stringent regulatory expectations. The GDPR framework means connected toy manufacturers must design for privacy by default, not as an afterthought.

Markets like Germany, the UK, and the Nordics lead in adoption — particularly in educational robotics and AR storytelling products .

What’s unique in Europe is the emphasis on non-screen-based interactive play. Parents and schools prefer toys that balance digital value with cognitive and motor development.

France and Spain are investing in bilingual AI companions that help kids practice second-language skills. These toys are gaining popularity in immigrant-heavy regions and cross-border education programs.

That said, countries like Italy and Eastern Europe show slower adoption, mostly due to economic constraints and lower broadband penetration outside major cities.

 

Asia Pacific

Asia Pacific is the fastest-growing region by far — and not just because of population. Rising middle-class income, strong smartphone penetration, and a cultural focus on academic achievement are combining to make this market explode.

China, South Korea, and Japan lead in innovation and volume. Chinese brands are producing low-cost, high-tech toys — many with embedded Mandarin AI tutors or math games. Domestic platforms like Xiaomi and Alibaba are also getting into connected toys as part of their smart home ecosystems.

India is also rising quickly. While affordability remains a barrier in rural areas, urban families are embracing STEM kits and smart puzzles. Regional content support (Hindi, Tamil, etc.) is helping with deeper market penetration.

South Korea is investing heavily in emotionally responsive robots for both play and therapy — a niche area that could redefine connected play over the next five years.

Insight: A Korean startup piloted a smart plush that tracks a child’s sleep rhythm and interacts accordingly. It’s now being studied as a sleep aid in pediatric hospitals.

 

Latin America

Connected toys in Latin America are still relatively new but gaining momentum in urban centers. Brazil and Mexico lead the pack, driven by:

• Rising internet and mobile device usage

• Growth of private edtech schools

• Increasing demand for affordable STEM tools

However, price sensitivity is high. Brands entering this region tend to offer Bluetooth-based kits or offline-first toys that don’t rely on always-on connectivity.

Localization is key here. Toys with Spanish and Portuguese support — and culturally relevant stories — outperform generic imports.

 

Middle East & Africa (MEA)

The MEA region is the least penetrated but holds strong long-term potential. The Gulf Cooperation Council (GCC) countries — like UAE and Saudi Arabia — are actively modernizing education, and connected toys are part of broader smart learning initiatives.

Governments are subsidizing STEM-focused kits in public schools, and partnerships with global edtech brands are expanding.

In Africa, toy adoption leans more toward low-power, rugged, and screen-free solutions — often supported by NGOs or international aid programs.

Cloud-connected toys are rare in sub-Saharan regions due to connectivity issues, but offline-first educational kits with local language support are gaining popularity in Kenya, Ghana, and South Africa.

 

Regional Outlook in a Nutshell:

Region	Maturity Level	Key Traits
North America	High	Privacy-first, subscription-based, early adopters
Europe	High	Regulatory-driven, screen-lite, educational
Asia Pacific	Fast Growth	High tech, affordable, multilingual content
Latin America	Moderate	Cost-sensitive, mobile-led, localized stories
MEA	Low–Emerging	Public investment, offline-focused, NGO-driven

 

Bottom line: Regional success in connected toys doesn’t come down to tech alone. It hinges on content relevance, pricing flexibility, and trust in how data is handled. Companies that adjust their go-to-market strategy by geography — not just language — will win the next phase of adoption.

 

End-User Dynamics And Use Case

Connected toys might be marketed to children, but it’s the parents, educators, and caregivers who decide what gets purchased — and why. Across user categories, the expectations vary sharply. Some want screen-free engagement. Others are looking for structured learning. A few are focused on therapy or special needs. But across the board, one thing is consistent: value is judged by more than just fun .

Parents and Caregivers

This is the primary buying group — and easily the most segmented.

• Tech-savvy parents gravitate toward toys with programmable features, educational apps, and analytics dashboards that track developmental progress.

• Safety-first parents seek toys with strong privacy protections, screen-free experiences, or time-limited features.

• Budget-conscious families often prefer modular toys that offer expandable content over time or multi-age usability .

In developed markets, recurring subscription models and app updates help sustain long-term engagement. In emerging markets, durability, battery efficiency, and offline play modes take priority.

Insight: A 2024 parent survey in Canada found that 62% of parents using app-based learning toys wanted weekly content updates — not for novelty, but to keep pace with their child’s development.

 

Schools and Educational Institutions

Schools are becoming major end-users — not just for STEM programs, but also for early literacy, social-emotional learning, and inclusive education .

Classroom-ready connected toys usually feature:

• Multiple-user compatibility

• Teacher dashboards for progress monitoring

• Localized content for regional curricula

• Durability and ease of sanitation (especially post-COVID)

Smart toys used in classrooms must balance entertainment with measurable learning outcomes. As a result, brands that offer bundled lesson plans or LMS integration are gaining ground .

One growing trend is the use of coding robots in after-school programs. These are typically lower-cost, app-controlled bots that teach loops, sequences, and conditional logic.

 

Therapists and Special Education Professionals

This user segment is growing rapidly, especially in North America, South Korea, and the Nordics.

Connected toys are being used in speech therapy, autism spectrum interventions, and developmental delay support. Key features in demand include:

• Customizable speech libraries

• Emotion-recognition and feedback loops

• Haptic feedback or light cues for sensory support

Many therapists prefer toys that work offline or in controlled environments, with no cloud sync required — ensuring data security and minimizing tech distractions during sessions.

 

Retailers and Toy Stores

Retailers — both online and offline — are adapting to a new kind of shelf logic. Connected toys require demo zones, explainer videos, and on-site education.

Brick-and-mortar chains are curating “Smart Toy Aisles” and offering digital test-play experiences through tablets or AR overlays.

E-commerce platforms are pushing bundled product + subscription offers, especially during gifting seasons. Amazon and Alibaba now feature dedicated “Connected Learning” hubs.

 

Use Case Highlight: Early Intervention in Speech Therapy (U.S.)

A pediatric therapy clinic in Seattle integrated an AI-powered voice-interactive plush into its speech development program for children aged 3–6 with delayed language acquisition.

The toy recognized basic words, responded with reinforced phrasing, and allowed therapists to customize prompts based on each child’s needs. Over a 10-week pilot, therapists reported:

• A 22% increase in spontaneous word use

• Reduced anxiety during solo speech tasks

• Higher retention during home practice

Parents could log in to a dashboard showing which phrases or commands the child practiced most, creating a sense of involvement without adding therapist workload.

This wasn’t just a win for the child. It shortened therapy cycles and reduced repeat sessions — cutting operational costs and improving throughput at the clinic.

 

Bottom line: In connected toys, the end user isn't just the child. It's the adult making the buying decision, the teacher integrating the toy into a lesson, or the therapist turning play into progress. Companies that understand these varied needs — and design accordingly — won’t just build smarter toys. They’ll build smarter ecosystems.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

The connected toys market has been buzzing with innovation, acquisitions, and feature rollouts — many aimed at enhancing educational outcomes or reinforcing data privacy. Here are some notable moves since 2023:

• LEGO Education launched SPIKE Essential App 2.0 (2023)
  The updated app features real-time progress tracking and voice-based instructions, making it more inclusive for early learners and non-readers. It also added compatibility with Google Classroom APIs, simplifying school deployment.

• Miko AI Robot Expanded to 90+ Countries (2024)
  Miko , a voice-interactive learning robot for kids, crossed major international expansion milestones. It added localized language support in Japanese, Arabic, and Spanish, along with GDPR-compliant speech privacy settings.

• Mattel Partnered with StoryToys for AR Book Series (2023)
  Mattel’s Fisher-Price line released a series of physical storybooks paired with AR apps that project characters and narration. The collaboration emphasizes hybrid storytelling without full-time screen use.

• VTech Released KidiCom Chat 2 with End-to-End Encryption (2024)
  In response to rising privacy concerns, VTech upgraded its child messaging device with encrypted messaging and parental filters that exceed COPPA and GDPR baselines.

• PlayShifu Announced $30M Series B Round (2023)
  The India-based edtech brand raised fresh funding to expand its Tacto and Orboot lines globally. Their roadmap includes interactive games tied to National Curriculum Frameworks across the UK, India, and Australia.

 

Opportunities

• Expansion into Therapeutic and Special Needs Markets
  There’s rising demand for connected toys that assist with speech therapy, social-emotional regulation, and neurodivergent learning. These toys don’t just entertain — they enable breakthroughs in non-traditional learning environments.

• Localization and Multi-Language Content
  As connected toys expand into Latin America, MENA, and Southeast Asia, the demand for multilingual voice recognition and culturally relevant content is growing fast. Products that support regional languages will scale faster than those that rely solely on English.

• School Procurement and Edtech Partnerships
  Governments and private school networks are increasingly open to connected toy integration in formal curriculums. Companies that offer teacher training modules, curriculum guides, and LMS APIs will find new growth channels beyond retail.

 

Restraints

• Privacy and Compliance Hurdles
  Toys that use voice, camera, or location services face strict scrutiny. Non-compliance with COPPA, GDPR, or emerging laws in India and Brazil can result in product bans, fines, or bad PR. Even compliant toys must work harder to earn parental trust .

• High Development and Certification Costs
  Building a connected toy today isn’t just about hardware and software. It requires investments in cybersecurity audits, localization teams, cloud storage, and regulatory certifications — all of which eat into margins, especially for startups.

To be honest, the challenge isn’t demand — it’s delivery. Parents are ready. Schools are interested. But if privacy, pricing, and reliability don’t align, even the best ideas won’t survive the long game.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 8.2 Billion
Revenue Forecast in 2030	USD 18.3 Billion
Overall Growth Rate	CAGR of 15.1% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Interaction Type, Age Group, Connectivity Technology, Geography
By Interaction Type	Smart Toys, Voice-Interactive Toys, Screen-Free Connected Toys
By Age Group	Toddlers (0–3), Preschoolers (3–5), Grade Schoolers (6–12), Teenagers (13+)
By Connectivity Technology	Bluetooth, Wi-Fi, Cellular/LTE, NFC & RFID
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, China, India, Japan, Brazil, UAE, South Korea
Market Drivers	- Growing demand for educational and screen-free tech play - Rapid adoption in Asia and multilingual markets - Shift toward subscription-based toy ecosystems
Customization Option	Available upon request