Stem Toys Market Size and Share
Stem Toys Market Analysis by Mordor Intelligence
The STEM toys market size reached USD 21.4 billion in 2025 and is projected to hit USD 32.07 billion by 2030, reflecting an 8.43% CAGR. Continued government funding for STEM curricula, rising middle-class incomes in emerging economies, and parents’ preference for educational play underpin expansion. Mandatory AI lessons in China and the UAE, a refreshed U.S. Federal Strategic Plan for STEM Education, and Saudi Arabia’s USD 100 billion AI push are ushering in large institutional orders[1]UAE Government, “UAE Centennial 2071,” https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/strategies-plans-and-visions/innovation-and-future-shaping/uae-centennial-2071. Supply chains are also improving; semiconductor lead times have narrowed to 10-15 weeks, lowering production risk for connected products. Meanwhile, the online channel’s reach allows smaller brands to compete globally, accelerating product innovation and sharpening price competition.
Key Report Takeaways
By product type, Building & Construction toys led with 34.85% revenue share in 2024. Robotics & Coding Kits are forecast to expand at an 11.29% CAGR to 2030.
By technology integration, Non-Electronic Traditional toys accounted for 48.29% of the STEM toys market share in 2024. AI-Enabled Smart Toys are advancing at a 10.85% CAGR through 2030.
By age group, products for children aged 9-12 captured 41.35% share of the STEM toys market size in 2024. The 13-17 years segment is projected to grow at a 9.96% CAGR between 2025-2030.
By distribution channel, online retail commanded 39.44% share of the STEM toys market size in 2024 and continues to lead with a 10.28% CAGR.
By geography, Asia-Pacific held 43.29% of the STEM toys market share in 2024, while the Middle East & Africa region is set to register a 9.64% CAGR through 2030.
Global Stem Toys Market Trends and Insights
Drivers Impact Analysis
| Driver | % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing parental emphasis on STEM learning | +1.8% | Global, with early gains in North America, EU, Asia-Pacific | Medium term (2-4 years) |
| Government-led STEM education mandates & funding | +2.1% | National, with early gains in China, UAE, Saudi Arabia, US | Long term (≥ 4 years) |
| Rising disposable incomes in emerging markets | +1.2% | APAC core, spill-over to MEA | Medium term (2-4 years) |
| Integration of robotics & coding within K-12 curricula | +1.9% | Global, with concentration in developed markets | Long term (≥ 4 years) |
| AI-powered adaptive-learning toy features | +0.9% | North America & EU, expanding to APAC | Short term (≤ 2 years) |
| Growing demand for screen-free and experiential toys | +0.4% | Global, with premium market focus | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Growing parental emphasis on STEM learning
Parents increasingly recognize STEM skills as essential for future career success, with 75% of Gen Z expressing interest in STEM careers despite only 29% selecting it as their first choice, indicating a gap that educational toys can bridge. Research from the 2018 National Survey of Science and Mathematics Education reveals that elementary science receives only 18-27 minutes of daily instruction compared to 89 minutes for reading, creating demand for home-based STEM learning tools that supplement limited classroom time. The 2025 toy trends survey indicates 60% of US parents actively seek STEAM skill-building toys, representing a significant shift from entertainment-focused purchasing toward educational value. This trend accelerates as parents witness technology's increasing role in their children's academic and professional futures, driving willingness to invest in premium educational products that demonstrate measurable learning outcomes
Government-led STEM education mandates & funding
National governments worldwide implement comprehensive STEM education policies that create institutional demand for educational toys and learning materials. China's mandatory AI education curriculum, requiring 8+ hours annually starting September 2025, affects millions of students and generates procurement opportunities for robotics kits and coding toys. The UAE's AI curriculum rollout covers 300,000 students across K-12 with partnerships involving G42, AI71, and Mohamed bin Zayed University of Artificial Intelligence, creating structured demand for age-appropriate AI learning tools[2]Carrington Malin, “UAE Moves to Embed AI Learning Across Entire School System,” Middle East AI News, middleeastainews.com. Saudi Arabia's $100 billion AI investment commitment includes educational infrastructure development and teacher training programs that require hands-on learning materials. The Federal Strategic Plan for STEM Education, updated November 2024, emphasizes early childhood STEM exposure and provides funding mechanisms for educational technology procurement, regulatory influence through CPSC safety standards ensures product quality while creating compliance frameworks that favor established manufacturers.
Integration of robotics & coding within K-12 curricula
Educational institutions increasingly embed programming and robotics instruction across grade levels, creating sustained demand for curriculum-aligned learning tools. The Central Board of Secondary Education (CBSE) designated STEM Education as its 2025 annual teacher training theme, partnering with IIT Gandhinagar for 30-hour professional development programs that emphasize hands-on pedagogies. Only 26% of elementary schools and 53% of high schools currently offer programming courses, indicating substantial growth potential as curriculum standards evolve. Students exposed to four or five technology-related topics demonstrate twice the likelihood of pursuing STEM careers compared to peers with limited exposure, validating the importance of early, comprehensive technology integration[3]"Gen Z and STEM Careers: How Exposure Influences Career Choices", STEAM Ahead, https://www.westeamahead.org/blog/2024/8/19/gen-z-and-stem-careers-how-exposure-influences-career-choices. Regulatory influence through educational standards bodies like CSTA and ISTE creates product alignment requirements that benefit manufacturers offering curriculum-compliant solutions.
Rising disposable incomes in emerging markets
Economic growth in developing regions expands the addressable market for premium educational toys, particularly in the Asia-Pacific and the Middle East & Africa. Saudi Arabia's National Semiconductor Hub initiative, backed by SAR 1 billion in deep-tech venture funding, reflects broader economic diversification that increases household spending capacity on educational products. Vietnam's manufacturing sector growth, with foreign direct investment reaching USD 25.35 billion in 2024 and manufacturing contributing over 20% of GDP, creates middle-class expansion that drives consumer spending on children's education. The UAE's Centennial 2071 vision emphasizes human capital development and knowledge economy transition, supported by government programs that increase educational spending and create favorable conditions for STEM toy adoption. Regional space programs in the Middle East, including the UAE's 3 billion AED National Space Fund and multiple CubeSat projects, generate STEM enthusiasm that translates into consumer demand for space-themed educational toys.
Restraints Impact Analysis
| Restraint | % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High price sensitivity & economic-cycle exposure | -1.1% | Global, with higher impact in emerging markets | Medium term (2-4 years) |
| Competition from screen-based digital entertainment | -0.8% | Global, particularly in developed markets | Long term (≥ 4 years) |
| Semiconductor & sensor shortages for smart toys | -0.6% | Global, with manufacturing concentration risk in Asia | Short term (≤ 2 years) |
| Data-privacy concerns in connected toys | -0.4% | North America & EU, expanding globally | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Competition from screen-based digital entertainment
Digital entertainment platforms compete directly with physical STEM toys for children's attention and engagement time. Research indicates that, despite 85% of teens wanting to learn more about STEM to create and invent, 51% may be discouraged due to a lack of understanding or limited exposure to STEM professionals. The EdWeek Research Center survey reveals a perception gap where 59% of STEM teachers believe student motivation decreases from elementary to high school. In comparison, 59% of secondary students report increased motivation, suggesting that engagement strategies must evolve with age-appropriate content. Regulatory influence through platform oversight and screen time recommendations creates opportunities for physical STEM toys that offer hands-on alternatives to digital entertainment while maintaining educational value.
Data-privacy concerns in connected toys
Consumer awareness of data collection practices in smart toys creates market resistance that affects adoption rates for AI-enabled products. The Federal Trade Commission and Consumer Product Safety Commission maintain strict guidelines for connected toys under COPPA regulations, requiring explicit parental consent and data minimization practices. The UK Information Commissioner's Office published comprehensive guidance on connected toys, emphasizing privacy-by-design principles that increase development costs and complexity. These regulatory frameworks create compliance burdens that favor larger manufacturers with dedicated privacy teams while potentially limiting innovation in smaller companies. The UAE's approach of limiting screen time and emphasizing offline learning demonstrates government recognition of privacy concerns and preference for traditional educational methods over connected alternatives.
Segment Analysis
By Product Type: Construction Dominance Meets Coding Innovation
Building & Construction toys maintain market leadership with 34.85% share in 2024, reflecting their fundamental role in developing spatial reasoning and engineering thinking skills. LEGO Group's record 2024 performance, achieving DKK 74.3 billion revenue with 13% growth, demonstrates the enduring appeal of construction-based learning. The segment benefits from cross-generational appeal, with parents recognizing building blocks as foundational STEM tools that develop problem-solving abilities without requiring digital literacy. Educational research confirms that hands-on construction activities strongly correlate with positive STEM dispositions in secondary students, particularly when combined with real-world engineering challenges. Regulatory influence through ASTM F963 toy safety standards ensures product quality while creating barriers to entry that benefit established manufacturers with comprehensive testing capabilities.
Robotics & Coding Kits emerge as the fastest-growing segment with 11.29% CAGR through 2030, driven by curriculum mandates and increasing parental recognition of programming as a core literacy skill. Sphero's Bolt Plus launch in June 2024 at $199 exemplifies the premium positioning of coding toys that combine hardware and software learning [corporate announcements]. The segment benefits from government initiatives like China's mandatory AI education and the UAE's comprehensive programming curriculum, creating institutional procurement opportunities beyond consumer sales. Research indicates that students exposed to robotics and coding activities in informal settings develop STEM career aspirations comparable to those of STEM professionals, validating the long-term impact of these educational tools. Moose Toys' partnership with CrunchLabs and Mark Rober for STEM toy development signals industry recognition of the segment's growth potential and the importance of educator endorsements in driving adoption.
Note: Segment shares of all individual segments available upon report purchase
By Technology Integration: Traditional Foundation Supports Smart Innovation
Non-electronic traditional toys command 48.29% market share in 2024, reflecting persistent parental preference for screen-free learning experiences and concerns about early technology exposure. The UAE's policy limiting screen access until fifth grade and capping AI lesson duration demonstrates government recognition of developmental considerations that favor traditional educational approaches. Building sets category growth for the fifth consecutive year indicates sustained demand for tactile, manipulative learning tools that develop fine motor skills alongside STEM concepts. Educational research supports hands-on, experiential learning as particularly effective for middle-grade students, with out-of-school STEM activities showing strong correlation with increased interest and motivation. Regulatory influence through toy safety standards favors traditional materials and construction methods that have established compliance pathways.
AI-Enabled Smart Toys accelerate at a 10.85% CAGR through 2030, driven by technological advancement and curriculum integration requirements. The semiconductor supply chain stabilization, with 200mm wafer capacity rising 14% between 2023 and 2025, enables more reliable production of smart toy components. However, the segment faces headwinds from data privacy regulations and parental concerns about connected devices. The Consumer Product Safety Commission's proposed stronger labeling and testing requirements for button-cell batteries in electronic toys create additional compliance costs that may slow adoption. Mattel's Minecraft Creator Series partnership, combining physical toys with digital content through unique codes, illustrates successful hybrid approaches that bridge traditional and smart toy categories while addressing privacy concerns through limited connectivity.
By Age Group: Elementary Dominance Faces Teen Acceleration
The 9-12 years age group represents 41.35% market share in 2024, reflecting optimal cognitive development for STEM concept introduction and parental investment in educational tools during elementary school years. Research from selective Israeli primary school STEM programs indicates that students form positive STEM attitudes as early as third grade, with participation declining but interest intensifying as students progress through elementary years. The 2018 National Survey of Science and Mathematics Education reveals that elementary science instruction receives only 18-27 minutes daily compared to 89 minutes for reading, creating home-based demand for STEM toys that supplement limited classroom exposure. Regulatory influence through educational standards emphasizes hands-on learning and engineering design processes that align with manipulative toy formats preferred by this age group.
The 13-17 years segment grows fastest at 9.96% CAGR through 2030, driven by career exploration needs and increasing recognition of STEM skills' professional relevance. EdWeek Research Center findings reveal that 59% of secondary students report higher STEM motivation than in elementary school, contradicting teacher perceptions and indicating untapped market potential. Hong Kong secondary student research shows technology and science generate the highest career interest among STEM subjects, with males demonstrating significantly higher engagement in technology and engineering applications. The Lemelson-MIT Invention Index indicates that 77% of teens express interest in STEM careers, with hands-on activities and mentorship ranking as top engagement strategies. Fat Brain Toys' launch of Magshuto magnetic construction toys specifically targeting tweens demonstrates industry recognition of this demographic's distinct preferences for sophisticated building challenges.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: Digital Dominance Drives Market Evolution
Online Retail commands 39.44% market share in 2024 while maintaining the highest growth rate at 10.28% CAGR through 2030, reflecting fundamental shifts in consumer purchasing behavior and parents' preference for detailed product research before educational toy purchases. The COVID-19 pandemic accelerated e-commerce adoption, with parents appreciating the ability to compare educational value, read reviews, and access expert recommendations before investing in premium STEM products. Amazon's prominence in educational toy sales, with solar-powered robotics kits ranking among the top sellers, demonstrates the platform's role in discovery and validation for innovative STEM products. Digital distribution enables smaller manufacturers to reach global markets without traditional retail relationships, fostering innovation and competition in specialized STEM toy categories. Regulatory influence through consumer protection laws creates transparency requirements that benefit online platforms' detailed product information and review systems.
Online Retail's continued leadership at 10.28% CAGR reflects structural advantages in serving the STEM toy market's unique characteristics. Parents purchasing educational toys typically conduct extensive research, comparing curriculum alignment, age appropriateness, and learning outcomes—activities better supported by digital platforms than physical retail environments. The rise of subscription-box models and direct-to-consumer sales enables manufacturers to build ongoing relationships with families, providing curriculum support and progressive learning pathways that extend beyond single product purchases. LEGO's USD 366 million regional distribution center investment in Virginia, operational by 2027, indicates major manufacturers' recognition of e-commerce logistics requirements and commitment to supporting online channel growth. The elimination of de minimis exemptions for low-value imports affects direct-shipping models from international manufacturers, potentially benefiting domestic online retailers and established distribution networks.
Geography Analysis
Asia-Pacific maintains market dominance with a 43.29% share in 2024, driven by comprehensive government STEM education initiatives and substantial manufacturing capacity advantages. China's national education blueprint through 2035 and mandatory AI curriculum implementation create institutional demand that extends beyond traditional consumer markets. LEGO's significant regional investments, including record 2024 performance and continued expansion in Asian markets, demonstrate the region's importance to global STEM toy manufacturers. The region benefits from established supply chain infrastructure, with over 70% of global toy production concentrated in China, though geopolitical tensions drive diversification efforts toward Vietnam and other Southeast Asian countries. Regulatory influence through educational standards bodies in major markets like India (CBSE's STEM education emphasis) and China creates alignment requirements that benefit manufacturers with curriculum-compliant products.
The Middle East & Africa emerges as the fastest-growing region at 9.64% CAGR through 2030, propelled by ambitious government initiatives and substantial infrastructure investments in STEM education. The UAE's AI curriculum mandate covering 300,000 students and Saudi Arabia's USD 100 billion AI investment commitment create unprecedented institutional demand for educational technology and learning materials UAE Government. Saudi Arabia's National Semiconductor Hub initiative, backed by SAR 1 billion in venture funding, signals broader economic diversification that increases household spending capacity on premium educational products. Regional space programs, including UAE's 3 billion AED National Space Fund and multiple CubeSat projects across the region, generate STEM enthusiasm that translates into consumer demand for space-themed educational toys Middle East Space Monitor. The region's focus on developing knowledge-based economies creates favorable regulatory environments for educational technology adoption and procurement.
Competitive Landscape
The STEM toys market exhibits moderate concentration with fragmented leadership across specialized segments, creating opportunities for both established players and innovative startups to capture market share through differentiated offerings. Market leaders like LEGO Group leverage brand recognition and distribution scale, achieving a record 2024 revenue of DKK 74.3 billion with 13% growth, while maintaining innovation through partnerships with Formula 1, NIKE, and educational content creators. However, the industry's moderate concentration score of 4 out of 10 indicates significant white-space opportunities for companies that can address specific curriculum requirements or demographic needs. Technology integration serves as a key competitive differentiator, with companies like Sphero commanding premium pricing through advanced robotics platforms, while traditional manufacturers like Learning Resources expand into coding toys to maintain relevance in evolving educational markets.
Strategic partnerships emerge as the dominant competitive strategy, enabling companies to combine complementary strengths and access new distribution channels. Moose Toys' collaboration with CrunchLabs and Mark Rober demonstrates how traditional toy manufacturers leverage educator credibility and social media influence to penetrate the STEM market. Mattel's Minecraft Creator Series partnership illustrates successful hybrid digital-physical approaches that bridge traditional toy experiences with connected content, addressing privacy concerns while expanding engagement possibilities. Consolidation activities like Scholastic's $182 million acquisition of 9 Story Media Group and Lekolar Group's acquisition of Dutch leader Heutink signal industry recognition of the value in combining content creation, distribution capabilities, and educational expertise. Regulatory influence through educational standards compliance creates competitive advantages for companies with established curriculum alignment and teacher training capabilities, while supply chain resilience becomes increasingly important as manufacturers diversify away from China-concentrated production.
Stem Toys Industry Leaders
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LEGO Group
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VTech Holdings Ltd.
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Sphero Inc.
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Learning Resources Ltd.
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Thames & Kosmos
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2024: Sphero launched the Bolt Plus coding robot at USD 199, featuring advanced programming capabilities and educational curriculum integration, targeting the growing robotics and coding education demand.
- June 2024: Scholastic completed USD 182 million acquisition of 9 Story Media Group, combining Scholastic's IP and publishing reach with 9 Story's production and distribution capabilities to expand children's media and merchandising opportunities globally.
- May 2024: Lekolar Group acquired Dutch education products leader Heutink for approximately EUR 235 million, creating a leading European provider of creative and pedagogical products with expanded manufacturing footprint including Sri Lanka production facilities.
Global Stem Toys Market Report Scope
| Building & Construction Sets |
| Robotics & Coding Kits |
| Science Experiment Kits |
| Math & Logic Games |
| Others |
| Non-Electronic Traditional toys |
| Electronic Toys |
| AI enabled Smart Toys |
| 3-5 Years |
| 6-8 Years |
| 9-12 Years |
| 13-17 Years |
| 18+ Years |
| Supermarkets/ Hypermarkets |
| Online Retail Stores |
| Specialty Stores |
| Others |
| North America | United States |
| Canada | |
| Mexico | |
| Rest of North America | |
| Europe | Germany |
| United Kingdom | |
| Italy | |
| France | |
| Spain | |
| Netherlands | |
| Poland | |
| Belgium | |
| Sweden | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| Australia | |
| Indonesia | |
| South Korea | |
| Thailand | |
| Singapore | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Colombia | |
| Chile | |
| Peru | |
| Rest of South America | |
| Middle East and Africa | South Africa |
| Saudi Arabia | |
| United Arab Emirates | |
| Nigeria | |
| Egypt | |
| Morocco | |
| Turkey | |
| Rest of Middle East and Africa |
| By Product Type | Building & Construction Sets | |
| Robotics & Coding Kits | ||
| Science Experiment Kits | ||
| Math & Logic Games | ||
| Others | ||
| By Technology Integration | Non-Electronic Traditional toys | |
| Electronic Toys | ||
| AI enabled Smart Toys | ||
| By Age Group | 3-5 Years | |
| 6-8 Years | ||
| 9-12 Years | ||
| 13-17 Years | ||
| 18+ Years | ||
| By Distribution Channel | Supermarkets/ Hypermarkets | |
| Online Retail Stores | ||
| Specialty Stores | ||
| Others | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Europe | Germany | |
| United Kingdom | ||
| Italy | ||
| France | ||
| Spain | ||
| Netherlands | ||
| Poland | ||
| Belgium | ||
| Sweden | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| Australia | ||
| Indonesia | ||
| South Korea | ||
| Thailand | ||
| Singapore | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Colombia | ||
| Chile | ||
| Peru | ||
| Rest of South America | ||
| Middle East and Africa | South Africa | |
| Saudi Arabia | ||
| United Arab Emirates | ||
| Nigeria | ||
| Egypt | ||
| Morocco | ||
| Turkey | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What is the current value of the STEM toys market?
The STEM toys market size reached USD 21.4 billion in 2025.
How fast is the market projected to grow?
It is forecast to register an 8.43% CAGR, rising to USD 32.07 billion by 2030.
Which product segment is expanding quickest?
Robotics & Coding Kits are projected to grow at an 11.29% CAGR through 2030.
Which region shows the strongest growth momentum?
The Middle East & Africa region is advancing at 9.64% CAGR, the fastest worldwide.
How concentrated is supplier power?
The market scores 4/10 in concentration, meaning significant room remains for new entrants.
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