Connected Toys Market Size, Share, and Analysis, By Technology (Bluetooth, WLAN, NFC, and Others), By Distribution Channel (Supermarkets & Hypermarkets, Specialty Toy Shops, Online Stores, and Others), By Age Group (0-3 Years, 3-5 Years, 5-12 Years, and Above 12 Years), and Regional Forecast, 2024-2032

The rising children population's demand for smart technology-based interactive play kits & toys is mainly driving the connected toys market growth. In addition, the increasing popularity of WIFI and Bluetooth technology-based puzzles, building & construction sets, and other educational toys among school students further accelerates the product demand globally.

• According to the data released by the Toy Association, sales of building sets in the U.S. increased from USD 2.29 billion in 2020 to USD 2.67 billion in 2021.

Furthermore, the continual provision of the interactive, WIFI, and Near Communication Field (NFC) technology-based toys by the key manufacturing companies, such as Mattel Inc., Hasbro Inc., and others, is likely to influence kids toward buying such items, thereby favoring the global market growth.

• For instance, in 2019, Mattel Inc. launched an NFC technology-based 'Hot Wheels id’, a play kit of cars and trucks for the next generation of children.

Additionally, governmental assistance in spreading awareness regarding the toy industry-related entrepreneurship opportunities is expected to support the connected toys market development.

• For instance, in January 2021, the Government of India launched 'TOYCATHON 2021’, a hackathon event for students, teachers, and start-up entrepreneurs in India. The event aimed to increase the number of toy manufacturers and develop the overall Indian toy industry.    

Nowadays, Lego Group, Hasbro Inc., and other prominent toy manufacturing companies launch various promotional campaigns to build their brand image and increase product reach. These companies' efforts will increase the connected toys demand globally.

• For instance, in October 2020, the Lego A/S, a KIRKBI A/S-owned connected toy manufacturing company, launched 'The Little Red Brick’, a campaign to increase its brand image and enter the Indian toy industry.

Impact of COVID-19 on the Connected Toys Market

During the COVID-19-related lockdown restrictions, parents prefer giving their children Science, Technology, Engineering, and Math (STEM) toys and gadgets to motivate them to stay indoors and improve their educational learning experiences. This aspect has resulted in a significant increase in consumer demand for smart educational toys and favored the market growth amid the pandemic.

• For instance, Mattel Inc., an American connected toys manufacturer, reported 2% jump in its overall sales revenues and reached USD 4,583.7 million in 2020.

However, the closure of toy shops and departmental stores due to COVID-19 related lockdown restrictions in many countries has lowered the connected toy products sales from these stores and hampered the market growth.

Key Insights

The report will cover the following key insights:

• Consumer buying behavior related to connected toys


• Overview of the toys industry


• Supply chain & regulatory analysis


• Key industry developments (merger & acquisition, product innovation, and partnership & expansion)


• Impact of COVID-19 on the connected toys market

Analysis by Technology

The Bluetooth segment holds a major market share due to the users' ease of Bluetooth-based toy usage over other products equipped with other communication technologies. In addition, the cost-effectiveness and low battery consumption of Bluetooth-based toys over counterparts are further likely to support the segmental growth.

Analysis 9by Age Group 

The 5-12 years segment is expected to hold a major market share due to the significant school students' demand for educational and puzzle toys for building their creativity and thinking ability. Furthermore, the growing popularity of sports & recreation-purpose smart toys, such as remote-controlled drones, helicopters, cars, and others among teens, is more likely to accelerate the segmental growth.                   

Analysis by Distribution Channel 

The online stores segment is anticipated to hold a major market share due to the significant consumers' preference for online shopping of toys and games from the comfort of their homes. In addition, continual online toy retailers' provision of discounted toy products and related subscription box services are further expected to accelerate the online stores segmental revenues.    

Regional Analysis

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The largest share of the North American market is attributed to the significant U.S. and Canadian spending on entertainment and leisure-related products and services, resulting in considerable key players' revenue generation from connected toys.

• According to the statistics presented by the Bureau of Labor Statistics (BLS), the United Nations Statistical Bureau, U.S. spending on entertainment-related devices and services reached USD 2.91 million in 2020.  

Furthermore, the growing toy gifting trend among the North American population is expected to support the region's connected toy products revenues.

Key Players Covered

The report includes key players such as Mattel Inc., the LEGO Group, Hasbro Inc., Sphero Inc., PLAYMOBIL, Konami Holdings Corporation, Basic Fun, Inc., Sony Corporation, PlayFusion Ltd, BANDAI NAMCO Entertainment, and Wonder Workshop Inc.

Segmentation

Key Industry Developments

• In July 2019, BANDAI NAMCO Entertainment, a prominent toy manufacturer, in collaboration with a technology firm ISKN, launched 'Tori', a software platform that enables kids to connect their physical toys with smartphones.


• In May 2019, the LEGO Group Inc. launched 'Star Wars', a new connected toy edition in the U.S.