Connected Toys Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 16.12 Billion |
| Market Size (2030) | USD 42.90 Billion |
| CAGR (2025 - 2030) | 21.63% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Connected Toys Market Analysis
The Connected Toys Market size is estimated at USD 16.12 billion in 2025, and is expected to reach USD 42.90 billion by 2030, at a CAGR of 21.63% during the forecast period (2025-2030).
The growing preference among children for more interactive and self-aligning toys has propelled the market for connected toys. Connected toys are versatile devices that serve multiple purposes. Parents often program these toys to facilitate learning exercises and use them as event trackers to ensure the safety and security of their children. The adoption of connected toys is expected to witness increased demand over the forecast period as parents increasingly prefer connected toys that can assist their children with developing their intellectual level.
- Furthermore, the adoption of STEM (Science, Technology, Engineering, and Math) toys for children's skills enhancement is one of the key factors driving the demand for the connected toys market. These connected toys are being used to enhance professional skills, such as coding and engineering.
- Developing STEM skills among the youngest learners is an economic imperative in the United States. Thus, students starting early in STEM subjects can build strong foundations and begin to enhance the nation's low scores in these areas. According to the National Center for Education Statistics, 64% of fourth graders are below proficiency level in mathematics in most states of the United States. In response, toy companies are increasingly focusing on investing in making their products a suitable means of interactive learning.
- The growing digital trend of connecting common devices to the internet is posing new issues for consumer protection and online security. 'Connected toys' often include a microphone and speaker, as well as an app to process data. While it is undeniable that these high-tech gadgets can bring new life to leisure, they can also present significant problems in terms of privacy protection. Such factors related to privacy are hampering the growth of the market.
- However, the closure of toy shops and departmental stores due to pandemic lockdown restrictions in many countries lowered the connected toy products sale from the stores and hampered market growth.
Connected Toys Market Trends
Smartphone Connected Toys are Expected to Witness Significant Growth
- Smartphones have become increasingly prevalent worldwide, with a significant portion of the population owning or having access to one. This widespread adoption of smartphones created a large user base that can interact with smartphone-connected toys.
- Connected toys, also considered smart toys, are available in various shapes and designs with a common connectivity element, allowing the children to interact with the toy through a smart device or smartphone. Many manufacturers have been producing toy units that can fly using only an app and a Wi-Fi or bluetooth connection.
- With the rapid technological advancements, children's toys are already computerized and connected to the Internet and will continue to witness many more upgrades in the near future. Moreover, an increase in Internet users, coupled with the increased adoption of hand-held devices like smartphones and tablets, is driving the global market.
- Various factors such as direct communication, real-time tracking of children's activities, and personal data storage that includes a child's name, photos, and voice recordings, which helps personalize the toys, are some of the reasons driving the app-based connected toys. For instance, in September 2022, the world of Shell Motorsport came with seven bluetooth-controlled models. Each model can be remote-controlled via a smartphone, with gamification and engagement through the global Shell racing app.
- As artificial intelligence (AI) and robotics have become more affordable than in the past years, the technology has been incorporated into a wide range of children's toys. This not only offers a new interactive experience to the children but also extends the life of toys with multiple features. Such innovations are expected to drive the market over the forecast period.
North America is Expected to Hold the Largest Market Share
- The demand for connected toys in the region is expected to grow in the coming years. This growth will be driven by the continued popularity of technology among children, the growing focus on educational toys and the increasing availability of connected toys in the market.
- North America is expected to dominate the global connected toys market with a significant market share. The rapid adoption of technological advancements in the region, the integration of technology in various learning and leisure gadgets, and the high penetration of connectivity services stand to be key factors driving the market's growth.
- Furthermore, increasing adoption of these toys among toddlers and pre-schoolers in the United States and Canada on account of strong product awareness through e-commerce portals and print and digital media is expected to remain a favorable factor over the coming years.
- The presence of key players, including Mattel Inc., Hasbro, Inc., Sphero, and others in connected toys, is expected to be a major factor driving the market growth in North America. Also, these vendors are making significant developments and innovations in their products and offerings, which will further contribute to the region's growth.
- In February 2022, Hasbro, Inc., a global play and entertainment leader, announced the activation of its purpose-driven brand blueprint strategy with an extensive lineup of new content and products across its iconic portfolio. The company unveiled all-new entertainment and product innovations across key franchise categories, including action, arts & crafts, and gaming brands.
Connected Toys Industry Overview
The connected toys market is fragmented, with numerous players operating in the market. There are both established toy manufacturers and emerging tech companies competing in this market, offering various connected toys and smart devices for children. Various players are adopting strategies like product innovation, mergers, and acquisitions, primarily to extend their product portfolio and remain competitive in the market.
In November 2022, Mattel Inc., the multinational toy manufacturer best known as the maker of Barbie, Hot Wheels, and other iconic toys, acquired Caribu, an app that allows families to read, draw and play games in an interactive video call.
In July 2022, Mattel, Inc. entered into a multi-year agreement with SpaceX to create and market products that inspire children and collectors alike to tap into their inner space explorers. Further, in 2023, Mattel would begin releasing SpaceX-inspired toys under its iconic Matchbox brand. Simultaneously, Astro-inspired collectibles would debut on Mattel Creations, Mattel's collaboration and direct-to-consumer platform.
Connected Toys Market Leaders
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Mattel, Inc.
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Hasbro, Inc.
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Sphero Inc.
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Wonder Workshop, Inc
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WowWee Group Limited
- *Disclaimer: Major Players sorted in no particular order
Connected Toys Market News
- March 2023: The Lego Group recently announced a significant increase in profit after three years, despite experiencing a surge in demand. To meet the growing demand, the company made substantial investments in production capabilities and expanded its reach by opening 155 new branded stores in the previous year. Additionally, the company ramped up production at three of its five factories to ensure an adequate supply of Lego products.
- January 2022: Effective from the 31st of January, LEGO announced the cancellation of VIDIYO products that include a line of music-making toys controlled by a smartphone or tablet.
Connected Toys Industry Segmentation
Connected toys primarily consist of a microphone and speaker and an app to process the data. These toys offer a more personalized experience for children through embedded software that includes speech recognition software. Also, these toys can help parents keep track of the whereabouts of their children.
The connected toys market is segmented by type (smartphonec onnected toys, console connected toys, and tablet connected toys) and geography (North America, Europe, Asia Pacific, and the Rest of the World).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Smartphone Connected Toys |
| Console Connected Toys | |
| Tablet Connected Toys | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
| Smartphone Connected Toys |
| Console Connected Toys |
| Tablet Connected Toys |
| North America |
| Europe |
| Asia |
| Australia and New Zealand |
| Latin America |
| Middle East and Africa |
Connected Toys Market Research FAQs
How big is the Connected Toys Market?
The Connected Toys Market size is expected to reach USD 16.12 billion in 2025 and grow at a CAGR of 21.63% to reach USD 42.90 billion by 2030.
What is the current Connected Toys Market size?
In 2025, the Connected Toys Market size is expected to reach USD 16.12 billion.
Who are the key players in Connected Toys Market?
Mattel, Inc., Hasbro, Inc., Sphero Inc., Wonder Workshop, Inc and WowWee Group Limited are the major companies operating in the Connected Toys Market.
Which is the fastest growing region in Connected Toys Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Connected Toys Market?
In 2025, the North America accounts for the largest market share in Connected Toys Market.
What years does this Connected Toys Market cover, and what was the market size in 2024?
In 2024, the Connected Toys Market size was estimated at USD 12.63 billion. The report covers the Connected Toys Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Connected Toys Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Connected Toys Industry Report
Statistics for the 2025 Connected Toys market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Connected Toys analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
