Connected Toys Market Anticipated Valuation Exceeds USD 65.22 Billion by 2032 | CAGR of 22.6%

The global connected toys market size is expected to reach USD 65.22 billion by 2032, according to a new study by Polaris Market Research. The report “Connected Toys Market Share, Size, Trends, Industry Analysis Report, By Application (Education, Entertainment, and Other Applications); By Age Group; By Distribution Channel; By Region; Segment Forecast, 2023 – 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

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Surge in the number of parents and children enhancement with the internet usage worldwide which successfully combines the fun and education together and allow parents to monitor their kids’ activities coupled with the growing adoption of technology, mathematics, and engineering toys, are major factors propelling the market growth.

Moreover, the increasing popularity and prevalence of STEM toys, that are being used for enhancing professional skills like coding and engineering and focus on key players on developing innovated toys, will further create lucrative growth opportunities for the market. For instance, in January 2023, WowWee, introduced MINTiD Dog-E, a groundbreaking smart and app-connected robot toy with audio sensors, life-like movements, touch sensors, and a persistence of vision. The Dog-E companion app enable multiple users in a family to mint and save their own individual profile with unique look and personality.

With the rapid technological advancements and innovations, children toys are already connected to the internet and computerized and likely to have several new upgrades over the coming years. Additionally, the drastic increase in the number of internet users globally along with the rising adoption of various hand-held devices such as tablets and smartphones, is generating huge demand and growth potential.

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Many connected types are now incorporating technologies like artificial intelligence and VR & AR to enhance their interactive features and offer better and immersive user experiences and some major connected toy companies have started offering subscription-based services that provide access to new content and features over time, as this model allow companies to continuously generating revenue beyond the toy initial purchase.

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Connected Toys Market Report Highlights

  • Entertainment segment led the industry share in 2022, mainly due to rapid adoption of smart toys including tablets, robots, and interactive dolls and integration of features like voice and facial recognition
  • 1-5 years segment held the majority market share in 2022, which is mainly driven by growing prevalence among parents of this age category which help them in engaging tehri child
  • Online segment is projected to register a large CAGR during the study period, on account of consumer inclination towards online shopping
  • North America region dominated the global market with largest share owing to rising investments on large companies towards the development of interactive toys with improved characteristics
  • The global key market players include iRobot Corporation, Digital Dream Labs, Konami Holdings Corporation, The LEGO Group, Hasbro, and Mattel

Key Features and Drivers:

Integration of Digital Technology:
Connected toys leverage digital technology, including sensors, cameras, and wireless connectivity, to offer interactive features such as voice recognition, motion sensing, and app-controlled functionalities. These features enhance the play experience by providing personalized interactions, adaptive learning, and immersive storytelling.

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Educational and Developmental Benefits:
Many connected toys are designed to support children’s cognitive development, creativity, and STEM (science, technology, engineering, and mathematics) skills. These toys offer educational content, interactive lessons, and hands-on activities that promote learning through play, fostering critical thinking, problem-solving, and digital literacy skills.

Parental Control and Monitoring:
Connected toys often come with parental control features and companion apps that allow parents to monitor their children’s play activities, set usage limits, and control access to online content. These features provide peace of mind to parents by ensuring safe and age-appropriate play experiences for their children in the digital environment.


Interactive Play and Entertainment:
Connected toys offer interactive play experiences, including virtual pets, storytelling, games, and music, that engage children’s imagination and creativity. These toys encourage active participation, social interaction, and role-playing scenarios, providing hours of entertainment for children.

STEM Learning and Coding Education:
Many connected toys focus on STEM learning and coding education, introducing children to basic programming concepts, robotics, and engineering principles in a fun and engaging way. These toys often include coding games, programmable robots, and DIY electronics kits that teach computational thinking and problem-solving skills.

Health and Fitness Tracking:
Some connected toys incorporate health and fitness tracking features, encouraging children to stay active and adopt healthy habits. These toys may include activity trackers, fitness challenges, and gamified exercise routines that promote physical activity and well-being while rewarding children for achieving fitness goals.

Polaris Market Research has segmented the connected toys market report based on application, age group, distribution channel, and region:

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Connected Toys, Application Outlook (Revenue – USD Billion, 2019 – 2032)

  • Education
  • Entertainment
  • Other Applications

Connected Toys, Age Group Outlook (Revenue – USD Billion, 2019 – 2032)

  • 1-5 Years
  • 6-8 Years
  • 9-12 Years
  • Teenagers (13-19) Years

Connected Toys, Distribution Channel Outlook (Revenue – USD Billion, 2019 – 2032)

  • Offline
  • Online

Connected Toys, Regional Outlook (Revenue – USD Million, 2019-2032)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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