The global Connected Toys Market is projected to grow from USD 9.3 billion in 2023 to USD 24.1 billion by 2028, registering a strong CAGR of 20.7% during the forecast period. The market is being driven by increasing demand for interactive and educational toys, growing adoption of smartphones and smart devices among children and parents, rapid advancements in IoT and AI technologies, and rising consumer interest in personalized and immersive play experiences.
Market Size & Forecast
• 2023 Market Size: USD 9.3 billion
• 2028 Projected Market Size: USD 24.1 billion
• CAGR (2023–2028): 20.7%
• North America: Largest market in 2023
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Key Market Trends & Insights
• North America accounted for the largest share of the connected toys market in 2023.
• By technology, Bluetooth-enabled toys represented a significant revenue-generating segment.
• By type, app-connected toys continue to witness strong consumer adoption.
• Educational and STEM-focused connected toys are among the fastest-growing application categories.
• Online retail remains the leading distribution channel due to wider product availability and increasing digital purchasing behavior.
• AI-powered toys and voice-interactive toys are emerging as high-growth segments within the market.
The connected toys industry is experiencing substantial growth as toy manufacturers increasingly integrate digital technologies into traditional play experiences. Connected toys leverage internet connectivity, mobile applications, artificial intelligence, sensors, and cloud-based platforms to create interactive, educational, and personalized experiences for children. These products are transforming the toy industry by combining physical play with digital engagement and learning opportunities.
Growing investments in smart toy development, digital learning technologies, and child-focused AI applications are accelerating market expansion. Parents are increasingly seeking toys that combine entertainment with educational value, while children are becoming more comfortable interacting with connected devices from an early age. This shift is creating significant opportunities for manufacturers to develop innovative products that enhance cognitive, social, and creative development.
One of the most significant trends shaping the market is the growing adoption of STEM-based connected toys. Robotics kits, coding toys, programmable learning platforms, and AI-powered educational companions are gaining popularity among parents and educators seeking to improve science, technology, engineering, and mathematics learning outcomes. These toys provide hands-on learning experiences while maintaining high levels of engagement and entertainment.
The market is also witnessing increasing integration of artificial intelligence, augmented reality (AR), and virtual reality (VR) capabilities. These technologies enable toys to deliver adaptive learning experiences, voice interaction, emotional recognition, personalized content, and immersive gameplay. As AI capabilities continue to improve, connected toys are becoming more intelligent, responsive, and capable of supporting long-term engagement.
At its core, connected toy technology combines IoT connectivity, cloud computing, mobile applications, sensors, wireless communication technologies, and artificial intelligence. Modern connected toys can interact with smartphones and tablets, respond to voice commands, track learning progress, provide personalized feedback, and connect children to digital content ecosystems that extend play beyond physical products.
A major growth driver for the market is the widespread adoption of smartphones and tablets. Companion applications enable toy manufacturers to offer software updates, personalized experiences, interactive content, and parental control features that significantly enhance product value. Parents are increasingly attracted to connected toys that provide educational benefits while allowing monitoring and customization of children’s activities.
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The rapid growth of IoT and AI technologies has significantly expanded the capabilities of connected toys. Manufacturers are increasingly developing toys that can learn from user interactions, adapt to individual preferences, and deliver personalized educational experiences. Additionally, partnerships between toy companies, technology providers, and content creators are fostering innovation and enabling richer digital ecosystems around connected products.
Looking ahead, the connected toys market is expected to witness strong growth driven by advances in AI-powered play experiences, voice-enabled interaction, educational robotics, AR/VR integration, and smart learning technologies. As parents continue to prioritize educational development and personalized learning, connected toys are expected to become an increasingly important segment of the global toy industry.
Key Connected Toys Company Insights
Some of the leading companies operating in the connected toys market include major toy manufacturers and technology-driven toy innovators focused on smart play experiences and educational technologies.
Key Connected Toys Companies
• Hasbro
• Mattel
• Sony Corporation
• Spin Master
• The LEGO Group
• Sphero
• UBTECH Robotics
• VTech Electronics
• Wonder Workshop
• WowWee Group
Recent Developments
• Growing demand for STEM-focused and coding-based connected toys is encouraging manufacturers to expand educational product portfolios.
• AI-powered connected toys featuring adaptive learning and voice interaction capabilities are witnessing increased adoption.
• Toy manufacturers are integrating AR and VR technologies to create immersive and interactive play experiences.
• Strategic collaborations between toy companies and technology providers are accelerating innovation in smart toy ecosystems.
Regional Insights
North America to Lead the Connected Toys Market
North America is expected to maintain its leading position in the connected toys market due to high consumer spending on educational and entertainment products, widespread adoption of connected devices, strong technological infrastructure, and the presence of major toy manufacturers and technology companies. The region continues to benefit from high awareness of STEM education, increasing acceptance of AI-powered learning tools, and strong demand for innovative smart toys. Furthermore, ongoing investments in digital learning and child-focused technology solutions are expected to support continued market leadership throughout the forecast period.
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