Connected Toys Market Size

Connected Toys Market Analysis

The Connected Toys Market size is estimated at USD 13.25 billion in 2024, and is expected to reach USD 35.27 billion by 2029, growing at a CAGR of 21.63% during the forecast period (2024-2029).

• 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.
• With the lockdown, school closures, and social distancing measures in place, children and families spent the most time at home. This led to an increased demand for toys and entertainment products, including connected toys, as they offered interactive and engaging experiences for children. Also, COVID-19 accelerated the adoption of digital technologies across various sectors. As families sought ways to keep children entertained and engaged at home, there was an increased demand for connected toys that integrated technology, such as augmented reality, virtual reality, etc.
• 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.