The global smart toys market is expected to register a CAGR of 28% in the forecast period. Toys play an essential role in the overall development of a child. Technologies like cloud computing, machine learning, artificial intelligence, face detection, etc. are already disrupting almost all sectors with the toy industry also amongst one of them.
- The significant growth is attributed to the increased awareness of technology-led education where smart toys are considered the most effective medium for developing the mental, physical, and intellectual skills of children through the utilization of artificial intelligence.
- Further, augmented reality in toys is gaining traction significantly in recent years. AR games are often used for helping in improving the analytical and reasoning skills of the kids, further proliferating the demand for smart toys.
- Moreover, the upcoming concept of the internet of toys is augmenting the market. Furthermore, the growth of the market is also driven by an increase in disposable income among middle-income groups and changing lifestyles of people.
- However, the high cost of these toys acts as a restraint for the growth of the market. Also, security and privacy have become the major concern for smart toys market. For instance, CloudPets, an Internet-connected soft toy manufactured by Spiral Toys, ceased trade after the claims about the security breach by the company. CloudPets leaked the messages of 2 million of their owners, along with personal details and passwords.
Scope of the Report
A smart toy is a connected toy integrated with technologies like IoT, AI, augmented reality, and cloud computing, etc. which effectively has its intelligence by onboard electronics. These enable it to learn, behave according to the pattern, and alter its actions depending upon environmental stimuli. Typically, it can adjust to the abilities of the player.
Key Market Trends
Technology Awareness helps Connected and App-Enabled Smart Toys is Expected to Drive the Market
- App-Enabled smart toys are expected to dominate the smart toys market as they are easy to use and deploy. Also, with the development of plenty of apps, it is the most sought after toy type. Advances in application programming interface (API) for connected toys is expected to enhance the market growth.
- Various factors such as connected toys, direct communication, real-time tracking of children’s activities, and in the storage of personal data that includes child’s name, photos and voice recordings which helps personalize the toys are some of the factors driving the app-based smart toys market.
- Increase in the number of internet users, coupled with the rising popularity of various hand-held devices such as smartphones and tablets together is driving the awareness and growth of app-enabled smart toys market worldwide. Also, it helps children learn while playing and encourage the development of essential skills like creativity, thinking outside the box, and problem-solving.
Asia-Pacific Expected to Grow Significantly
- The Asia-Pacific region is expected to be the fastest-growing region with North America dominating the market. Over the coming years, vendors are expected to focus on countries such as India and China presenting a considerable growth prospect for the market.
- Companies in the region are focusing on expanding their reach through online platforms, which will also help in increasing their visibility. A trend towards digital learning is visible in emerging economies such as China and India, which is expected to spur growth in the smart toys market.
- Moreover, there is increased spending on R&D facilities of artificial intelligence firms operating in countries such as Japan and South Korea. This is expected to help smart toy manufacturers to establish partnerships to advance their products and gain competitive advantage.
The global smart toys market is fragmented and highly competitive due to the presence of a large number of players worldwide. The vendors are also increasingly adopting advanced technologies to develop innovative products and expand their product portfolio to enhance their global presence. Companies are also focusing on leveraging e-commerce portals and advanced technologies to extend their visibility and gain more consumers.
- June 2019 - Mattel, Inc. recently launched Hot Wheels id. Through innovative vehicle play, Hot Wheels id brings together physical and digital play in a Mixed Play experience with uniquely identifiable vehicles, a smart Race Portal, Smart Track, and digital hub, so that one can build a personalized fleet, measure the performance.
- January 2019 - Makeblock, a leading STEAM education solution provider, announces the official launch of The Neuron Artist Kit to unleash children’s artistic creativity with hands-on optical and electrical science projects and coding experience.
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