Connected Toys Market Size & Growth Forecast 2026–2035, 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 Growoth Outlook
Connected Toys Market size was over USD 13.93 Billion in 2025 and is likely to grow at a 20.5% CAGR between 2026 and 2035, surpassing USD 89.91 Billion by 2035. The industry revenue for 2026 is calculated at USD 16.53 billion.
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Regional Market Dynamics
- North America held the largest share in 2025, 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 2025 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
Global Market Forecast Snapshot
Market Outlook
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).Regional and Segment Outlook
North AmericaMarket Growth Drivers and Industry Trends
Rising parental interest in educational play is reshaping purchase decisions in the connected toys market, especially as STEM-focused products increasingly combine learning outcomes with app-linked interactivity, coding features, sensors, and adaptive challenges. This demand shifts spending toward toys that can deliver ongoing engagement rather than one-time novelty, encouraging manufacturers to build connected functionality into robotics kits, learning companions, and game-based educational devices. As a result, the connected toys market benefits from stronger repeat usage, higher perceived value, and broader household acceptance, particularly where parents view digital connectivity as part of the toy’s instructional utility rather than merely an entertainment add-on.
Integration of AR and AI technologies enhancing personalization and engagement in smart toys
The integration of AR and AI is changing how products compete in the connected toys market by making play sessions more responsive, individualized, and content-rich. AI-enabled toys can adapt difficulty levels, recognize patterns in user behavior, and generate more relevant interactions, while AR adds a visual layer that extends storytelling and gameplay beyond the physical toy itself. This combination increases the appeal of premium smart toys because engagement is sustained through evolving experiences instead of static features, influencing consumer willingness to choose connected formats that offer software-driven updates, deeper immersion, and a clearer distinction from traditional electronic toys.
Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems
Partnerships between toy companies and digital content owners are reinforcing product ecosystems in the connected toys market by linking physical play with recognizable characters, streaming content, games, and interactive storylines. These collaborations help brands keep toys relevant after purchase through fresh digital experiences, downloadable content, and synchronized media engagement, which can extend product lifecycles and encourage platform-based loyalty. In practice, this model supports market expansion by turning connected toys into gateways for recurring content interaction, making ecosystem depth and content continuity more important in consumer choice and brand positioning.
| 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 |
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Regional Demand Dynamics
North America held the largest regional market share in 2025 for the connected toys market, supported by strong consumer spending on smart entertainment products and broad household familiarity with app-enabled and internet-connected devices. The region’s leadership is strengthened by the presence of established toy brands, mature digital ecosystems, and retail channels that can effectively market, distribute, and support connected play products. In practice, this allows manufacturers to launch higher-value interactive toys more efficiently, while parents show greater willingness to adopt products that combine entertainment, learning, and device-based engagement.
Asia Pacific is advancing at a 22.55% CAGR over the forecast period in the connected toys market, driven by rapid adoption of digital technologies among younger consumers and expanding access to smartphones and connected home environments. Growth is being impelled by rising demand for interactive and tech-integrated play formats across urban markets, where consumers are becoming more comfortable with digitally enhanced children's products. The region’s momentum is also supported by a large child population base and increasing exposure to connected consumer electronics, which together create favorable conditions for faster uptake of smart toy offerings.
| 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 (%), Age Group, 2025
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Request Free Sample ReportWithin the connected toys market, the 9-12 Years segment held a 42.4% share in 2025, reflecting its strong fit with products that combine play, app connectivity, and more advanced interactive functions. Children in this age range are typically more comfortable navigating companion apps, voice features, and connected gameplay systems, which supports higher engagement and repeat usage. The segment’s leadership is also sustained by parent willingness to purchase toys that offer longer usage cycles and richer digital experiences for older children, helping 9-12 Years maintain the leading share position in the connected toys market.
The 6-8 Years segment is emerging as the fastest-growing area of the connected toys market as manufacturers increasingly tailor connected experiences to younger users through simplified interfaces, guided interactivity, and age-appropriate learning features. Growth in this segment is being backed by the practical need for toys that balance entertainment with accessible digital engagement for early school-age children. Compared with older age groups, 6-8 Years is gaining momentum because product design is becoming easier for children to use independently while still aligning with parental demand for interactive and educational play.
Interfacing Device Segment Analysis: Smartphones (Largest Segment) vs Wearables (Fastest-Growing Segment)
Smartphones accounted for the largest share of the connected toys market in 2025, backed by their widespread availability and their role as the primary control point for app-connected toy functions. Their leadership comes from practical everyday use: parents and households already rely on smartphones for downloading apps, managing device settings, and enabling content updates, which makes them the most convenient interfacing device for connected toy ecosystems. This installed familiarity reduces setup friction and supports continued dominance for smartphones in the connected toys market.
Wearables are the fastest-growing interfacing device segment in the connected toys market as toy experiences increasingly expand beyond screen-based interaction into motion, tracking, and real-time engagement. Their momentum is tied to the ability to make play more immersive and physically interactive, which sets wearables apart from conventional app control through smartphones. As connected toy developers seek more seamless and activity-based user experiences, wearables are experiencing stronger uptake because they fit naturally into hands-free and movement-oriented play patterns.
| 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
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 |
|---|---|---|---|---|---|---|---|
| No companies available. | |||||||
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. |
| 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. |
| 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. |
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