Connected Toys Market Size & Growth Forecast 2027–2036, By Segments (Age Group, Interfacing Device, Distribution Channel, Application, Technology, Type), Regional Demand Trends (North America, Asia Pacific, Europe), Key Country Insights (U.S., Japan, South Korea, Germany, France, Italy), and Competitive Landscape
Market Size and Growth Outlook
Connected Toys Market size was over USD 16.53 billion in 2026 and is likely to grow at a 20.05% CAGR between 2027 and 2036, surpassing USD 102.78 billion by 2036. The industry revenue for 2027 is calculated at USD 19.32 billion.
Get more details on this report
Request Free Sample ReportConnected Toys Market Intelligence Snapshot
Regional Market Dynamics
- North America held the largest share in 2026, supported by strong consumer spending, mature digital ecosystems, established toy brands, and widespread adoption of app-enabled connected devices.
- Asia Pacific is projected to grow at 22.55% CAGR, driven by rising smartphone penetration, tech-savvy younger consumers, and increasing demand for interactive, digitally enabled toys.
Segment Momentum
- The 9–12 years segment leads with a 42.4% share in 2026 due to stronger engagement with app-connected features, interactive gameplay, and longer usage cycles that appeal to both children and parents.
- Wearables are the fastest-growing device type as they enable motion-based, immersive play experiences and hands-free interaction, expanding connected toys beyond smartphone-only control into more physical engagement formats.
Market Expansion Drivers
- Growing demand for interactive STEM-based toys accelerating connected toy adoption among consumers.
- Integration of AR and AI technologies enhancing personalization and engagement in smart toys.
- Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems.
Leading Market Participants
- Leading companies in the connected toys market include LEGO A/S (Denmark), Hasbro, Inc. (United States), Mattel, Inc. (United States), Spin Master Corp. (Canada), VTech Holdings Ltd. (Hong Kong), Sony Group Corporation (Japan), Sphero, Inc. (United States), UBTECH Robotics Corp Ltd. (China), Wonder Workshop, Inc. (United States), WowWee Group Limited (Hong Kong).
Global Market Forecast Snapshot
Market Outlook
- 2026 Market Size: USD 16.53 billion
- 2027 Estimated Market Size: USD 19.32 billion.
- Projected Market Size: USD 102.78 billion by 2036
- Growth Forecast: 20.05% CAGR (2027-2036)
Regional and Segment Outlook
- Leading Regional Market: North America
- High-Growth Regional Hub: Asia Pacific
- Core Revenue Segment: 9-12 Years (Age Group) | Smartphones (Interfacing Device) | Online Retail (Distribution Channel) | Entertainment (Application) | Bluetooth (Technology) | App-Connected Toys (Type)
- Emerging Opportunity Segment: 6-8 Years (Age Group) | Wearables (Interfacing Device) | Direct Sales (Distribution Channel) | Educational (Application) | Artificial Intelligence (AI) (Technology) | Voice-Activated Toys (Type)
Market Growth Drivers and Industry Trends
Growing demand for interactive STEM-based toys accelerating connected toy adoption among consumers
Growing interest in interactive learning and STEM-oriented play is creating stronger demand for connected toys market offerings that combine entertainment with educational engagement. Parents and consumers are increasingly seeking products that encourage problem-solving, experimentation, and active participation, making digitally enabled toys more attractive than conventional play formats. The ability to incorporate interactive features into educational play supports broader adoption across households looking for engaging learning experiences.
Integration of AR and AI technologies enhancing personalization and engagement in smart toys
The integration of AR and AI capabilities is making the connected toys market more engaging by enabling richer interactions and personalized play experiences. These technologies can support responsive gameplay, adaptive interactions, and digitally enhanced environments, allowing smart toys to deliver experiences that feel more dynamic to individual users. Greater personalization also strengthens the appeal of connected products among consumers seeking technology-enabled entertainment rather than static play experiences.
Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems
Partnerships between toy brands and digital content providers are strengthening the connected toys market by linking physical products with broader digital experiences. Access to complementary content can extend gameplay, introduce new interactive activities, and encourage continued engagement beyond the initial purchase. Such collaborations also allow connected toy offerings to participate in more comprehensive immersive ecosystems, increasing the value of digitally integrated play for consumers.
| Growth Driver | Impact on CAGR | Regulatory Influence | Geographic Relevance | Adoption Rate | Impact Timeline |
|---|---|---|---|---|---|
| Growing demand for interactive STEM-based toys accelerating connected toy adoption among consumers | 2.40% | Moderate | North America, Europe | High | Near Term |
| Integration of AR and AI technologies enhancing personalization and engagement in smart toys | 2.00% | Moderate | Asia Pacific, North America | Medium | Mid Term |
| Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems | 1.70% | Low | Europe, Asia Pacific | Emerging | Mid Term |
Unlock insights tailored to your business with our bespoke market research solutions.
Click to get your customized report now.
Regional Demand Dynamics
North America (Largest Region)
In the connected toys market, North America held the largest share in 2026, supported by strong consumer adoption of smart home technologies, widespread digital connectivity, and high acceptance of interactive children’s products. Demand is reinforced by parents seeking toys that combine entertainment, learning, personalization, and digital engagement. The region also benefits from developed retail and e-commerce channels, established technology infrastructure, and growing interest in educational and STEM-focused play experiences. Increasing attention to data privacy and child safety is further shaping product development, encouraging manufacturers to strengthen security and parental control features.
Asia Pacific (Fastest-Growing Region)
Asia Pacific is emerging as the fastest-growing regional market, driven by expanding middle-class households, rising smartphone and internet penetration, and increasing consumer interest in technology-enabled learning and entertainment. Rapid urbanization and the expansion of e-commerce are improving access to connected toys across a broader consumer base. Growing investment in digital education and children's technology is also supporting demand, while manufacturers are increasingly incorporating artificial intelligence, voice interaction, and app-based functionality to align with evolving preferences for immersive and educational play.
| Parameter | North America | Asia Pacific | Europe | Latin America | MEA |
|---|---|---|---|---|---|
| Innovation Hub i Scale Nascent Developing Advanced | |||||
| Cost-Sensitive Region i Scale Low Medium High | |||||
| Regulatory Environment i Scale Restrictive Neutral Supportive | |||||
| Demand Drivers i Scale Weak Moderate Strong | |||||
| Development Stage i Scale Emerging Developing Developed | |||||
| Adoption Rate i Scale Low Medium High | |||||
| New Entrants / Startups i Scale Sparse Moderate Dense | |||||
| Macro Indicators i Scale Weak Stable Strong |
Key Country Insights
Germany 🇩🇪
Safe Digital PlayGermany emphasizes connected toys that comply with stringent safety and data privacy expectations. Toy manufacturers in Germany are investing in secure software platforms and educational features that strengthen consumer confidence and product value.
France 🇫🇷
Educational Engagement FocusFrance is seeing growing demand for connected toys that encourage learning while maintaining balanced digital interaction. French brands are emphasizing age-appropriate content, parental controls, and secure connectivity to support responsible product adoption.
Italy 🇮🇹
Family-Centric InnovationItaly is expanding connected toy offerings that combine interactive entertainment with educational value for family use. Italian distributors are introducing connected play products featuring intuitive interfaces and multilingual capabilities to appeal to diverse consumer preferences.
Japan 🇯🇵
Character-Based ExperiencesJapan is integrating connected technologies into toys featuring popular entertainment franchises and interactive storytelling. Japanese companies continue enhancing voice recognition, responsive features, and digital content to enrich children's play experiences.
South Korea 🇰🇷
Smart Toy DevelopmentSouth Korea is advancing connected toys through integration of artificial intelligence, robotics, and mobile applications. Companies in South Korea are developing interactive products that combine entertainment with educational functionality and digital connectivity.
United States 🇺🇸
Interactive Learning InnovationThe U.S. connected toys market is driven by demand for educational entertainment that combines digital engagement with physical play. Manufacturers are prioritizing secure connectivity, personalized content, and companion applications that enhance long-term consumer engagement.
Segment Leadership and Growth Trends
Connected Toys Market Share (%), by Age Group, 2026
Go beyond the chart, access full insights & data tables
Request Free Sample ReportAge Group Segment Analysis: 9-12 Years (Largest Segment) vs 6-8 Years (Fastest-Growing Segment)
In the connected toys market, the 9-12 years segment held the largest share of 42.4% in 2026, supported by children's greater familiarity with interactive digital experiences and their ability to engage with connected features more independently. Toys designed for this age group can incorporate interactive play, digital connectivity, educational content, and personalized experiences that align with increasingly sophisticated preferences. The combination of physical play with technology-enabled functionality also strengthens their appeal among children and supports continued interest from parents seeking engaging and technology-oriented products.
The 6-8 years segment is experiencing faster adoption as connected play becomes more accessible to younger children. Products designed for this age group can combine simple interactive functions with educational and entertainment-oriented experiences, encouraging early engagement with connected technology. Increasing parental interest in toys that blend learning, creativity, and digital interaction is supporting demand, while improvements in user-friendly interfaces are making connected products more suitable for younger users.
Interfacing Device Segment Analysis: Smartphones (Largest Segment) vs Wearables (Fastest-Growing Segment)
Smartphones represented the largest interfacing device segment in 2026, reflecting their widespread availability and established role as a gateway for controlling and interacting with connected toys. Smartphone-based interfaces allow users to access companion applications, manage toy functions, and engage with digital content through a familiar device. Their broad compatibility and convenience make smartphones a practical choice for households adopting connected toys, while the integration of app-based features expands the range of interactive experiences available to users.
Wearables are gaining traction as connected toy interfaces as consumers increasingly favor more immediate and portable forms of interaction. Wearable devices can enable hands-free engagement and support personalized experiences without requiring continuous access to a smartphone. Their integration with interactive toys also creates opportunities for movement-based activities, responsive play, and more immersive experiences, strengthening their relevance as connected play evolves toward more seamless technology integration.
| Segment | Sub-Segment | Largest Segment | Fastest Growing |
|---|---|---|---|
| Age Group | 0- 5 Years, 6-8 Years, 9-12 Years, Teenagers (13-19 Years) | 9-12 Years | 6-8 Years |
| Interfacing Device | Smartphones, Tablets, Consoles & PCs, Wearables | Smartphones | Wearables |
| Distribution Channel | Online Retail, Offline Retail, Specialty Stores, Direct Sales | Online Retail | Direct Sales |
| Application | Educational, Entertainment, Fitness and Health, Security and Monitoring | Entertainment | Educational |
| Technology | Wi-Fi, Bluetooth, Radio Frequency Identification (RFID)or Near Field Communication (NFC), Artificial Intelligence (AI), Augmented Reality (AR)and Virtual Reality (VR) | Bluetooth | Artificial Intelligence (AI) |
| Type | App-Connected Toys, Voice-Activated Toys, Screenless Connected Toys, Smart Toys with Wearable Integration, Robotics & Programmable Toys, Smart Action Figures and Dolls | App-Connected Toys | Voice-Activated Toys |
Competitive Landscape and Market Positioning
Major players in the connected toys market:
1. LEGO A/S (Denmark)
2. Hasbro Inc. (United States)
3. Mattel Inc. (United States)
4. Spin Master Corp. (Canada)
5. VTech Holdings Ltd. (Hong Kong)
6. Sony Group Corporation (Japan)
7. Sphero Inc. (United States)
8. UBTECH Robotics Corp Ltd. (China)
9. Wonder Workshop Inc. (United States)
10. WowWee Group Limited (Hong Kong)
Interactive digital technologies are reshaping engagement experiences in the connected toys market. Continuous innovation is integrating smart features that enhance learning and entertainment value. The market is evolving through immersive play solutions that combine physical interaction with digital connectivity.
| Company | Market Share | Company Revenue | Revenue CAGR (%) | Product Portfolio | Geographic Presence | Innovation / R&D Focus | Strategic Developments |
|---|---|---|---|---|---|---|---|
| LEGO A/S (Denmark) | |||||||
| Hasbro Inc. (United States) | |||||||
| Mattel Inc. (United States) | |||||||
| Spin Master Corp. (Canada) | |||||||
| VTech Holdings Ltd. (Hong Kong) | |||||||
| Sony Group Corporation (Japan) | |||||||
| Sphero Inc. (United States) | |||||||
| UBTECH Robotics Corp Ltd. (China) | |||||||
| Wonder Workshop Inc. (United States) | |||||||
| WowWee Group Limited (Hong Kong). |
Industry Development/News
| Company Name | Date | Key Development |
|---|---|---|
| LEGO | Feb-26 | LEGO introduced its Smart Bricks platform, integrating lights, sound, and sensor technologies into traditional construction blocks. The initiative enhances physical-digital play integration by enabling interactive and sensor-driven building experiences, strengthening LEGO’s position in the evolving connected toys segment through embedded technology capabilities. |
| Mattel and OpenAI | Jun-25 | Mattel entered a strategic partnership with OpenAI to develop AI-enabled toys across major brands, including Barbie. The collaboration focuses on embedding conversational AI and interactive digital capabilities into toys, representing a significant shift toward intelligent, adaptive play systems within the connected toys market ecosystem. |
| LEGO Group and Universal Products & Experiences | May-25 | LEGO Group and Universal Products & Experiences launched LEGO sets based on DreamWorks Animation’s Gabby’s Dollhouse: The Movie, targeting children aged four and above. The collaboration extends licensed IP integration into physical construction toys, supporting cross-media commercialization strategies within the connected toys ecosystem. |
| GUND | Sep-24 | GUND, a Spin Master company, partnered with Disney to launch a co-branded plush toy collection featuring Disney characters. The initiative integrates licensed character IP with GUND’s product design capabilities, reinforcing the role of cross-brand collaborations in expanding interactive and collectible segments within connected and experiential toy categories. |
| Sony Interactive Entertainment Europe | Jul-24 | Sony Interactive Entertainment Europe collaborated with Spin Master to launch The Shapes Collection, a toy line based on PlayStation Studios intellectual property including God of War Ragnarök and Horizon Forbidden West. The initiative extends gaming IP into physical collectibles, strengthening convergence between digital entertainment ecosystems and toy manufacturing. |
| Hasbro | Apr-24 | Hasbro signed a licensing agreement with Playmates Toys to produce and distribute Power Rangers toys, including a focus on the Mighty Morphin Power Rangers series. The agreement expands Hasbro’s ecosystem of licensed toy production and supports continued commercialization of established entertainment IP within the connected and branded toy segment. |
| The LEGO Group | Mar-23 | The LEGO Group increased production capacity and expanded its manufacturing footprint, including ramping up output across three factories and opening 155 branded retail stores. These operational expansions were implemented to address rising demand and reinforce global distribution and supply capabilities within its construction-based toy ecosystem. |
| Mattel, Inc. | Jun-22 | Mattel expanded its Mattel PlayBack program to include Fisher-Price toys, extending its toy circularity and take-back initiative across additional brands. The program enables product recovery and reuse across Barbie, MEGA, Matchbox, and Fisher-Price lines, strengthening sustainability-linked engagement within the broader toy ecosystem. |
Customize Your Report
Explore examples of how this report can be tailored to different research needs, including custom segments, additional topics or chapters, and related reports. Click a section of the wheel or its numbered marker to explore the available options.
Connected Toys Market — Custom Segments
| Segment | Sub-Segment |
|---|---|
| Monetization Model | One-Time Hardware Purchase, Hardware Plus Digital Content, Subscription-Based Services, Freemium & In-App Monetization |
| Sales Pricing Tier | Economy, Mid-Range, Premium, Luxury |
| Revenue Model | Direct-to-Consumer, Retailer-Led Sales, Platform & Ecosystem Sales, Institutional & Educational Sales |
Connected Toys Market — Custom TOC
| Custom Chapter | Custom Details |
|---|---|
| Digital Play Ecosystem Analysis |
|
| Child Data Privacy Compliance Assessment |
|
| Educational Technology Integration Assessment |
|
Need a different cut of the data?
Request Custom ResearchHow big is the connected toys market?
What is the expected industry size of connected toys by 2036?
How is STEM-focused consumer demand reshaping product adoption in the connected toys market?
How are AI, AR, and content partnerships influencing connected toy ecosystems?
Why does the 9–12 years age group dominate the connected toys market?
Why are wearables becoming the fastest-growing interfacing device in connected toys?
Why does North America lead the connected toys market?
Why is Asia Pacific the fastest-growing region in the connected toys market?
Who are the major participants shaping the connected toys landscape?
Our Clients
"The team demonstrated a great understanding of our business needs, and the reports were tailored to address our specific concerns and objectives."
Infosys
"The report was up-to-date with the latest industry trends and technological advancements. The detailed competitive landscape analysis was quite helpful."
Zebra Technologies
"The data presented in the report was accurate and well-researched. I also found the market dynamics section particularly useful."
Arlo Technologies
Our Research Team & Methodology
Every Fundamental Business Insights report is built by a dedicated vertical research team, validated through a structured primary-and-secondary methodology, and reviewed for accuracy before it reaches you.
Research Team Overview
Prepared by the Smart Technologies Research Team
Delivery
Published
Demand
Available
Support
Trust & Compliance
Research Intelligence
Research Workflow & Quality Assurance
Data Collection
Verified information gathered through primary and secondary research.
Data Triangulation
Cross-validation using multiple independent data sources.
Forecast Modelling
Market estimates developed using historical trends and analytical models.
Analyst Validation
Findings reviewed by domain experts for accuracy and consistency.
Editorial & Quality Review
Final editorial, quality, and compliance checks before publication.
Final Publication
Released after successful completion of the internal review process.
Report Coverage
📊 Market Assessment
- Market Size & Forecast
- Market Segmentation
- Regional Analysis
- Growth Drivers & Challenges
- Market Dynamics
🏢 Competitive Intelligence
- Competitive Landscape
- Company Profiles
- Competitive Benchmarking
- Mergers & Acquisitions
- Market Share Analysis or Key Company Strategies
🔍 Strategic Analysis
- Value Chain Analysis
- Porter's Five Forces
- PESTLE Analysis
- Pricing Trends
- Supply-Demand Analysis
🚀 Future Outlook
- Technology Landscape
- Regulatory Landscape
- Investment & Funding Landscape
- Emerging Opportunities
- Future Market Outlook
Have a question about this report or need a custom scope?
Request Customization