Global Internet-Connected Toys Market Size, Share, and COVID-19 Impact Analysis, By Product Type (Educational Toys, Smart Toys, Interactive Toys, and Others), By Age Group (0-3 Years, 3-5 Years, 5-12 Years, and 12 Years and Above), By Connectivity (Bluetooth, Wi-Fi, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Stores, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033

Global Internet-Connected Toys Market Insights Forecasts to 2033

• The Global Internet-Connected Toys Market Size was Estimated at USD 7.81 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 10.07% from 2023 to 2033
• The Worldwide Internet-Connected Toys Market Size is Expected to Reach USD 20.39 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Global Internet-Connected Toys Market Size is Expected to cross USD 20.39 Billion by 2033, Growing at a CAGR of 10.07% from 2023 to 2033. The internet-connected toys market is propelled by the rising demand for interactive and educational toys.  

Market Overview 

The market that manufactures toys with internet connectivity that enables them to communicate with other equipment and offer improved sports experiences is referred to as the global internet-connected toys market. These toys often use techniques such as the Internet of Things (IoT), Machine Learning (ML), and Artificial Intelligence (AI), which provide entertaining, educational, and interactive features. The market expansion is driven by the increased digitization of childhood experiences as well as the growing need for educational toys that support STEM (Science, Technology, Engineering, and Mathematics) learning. Also, a primary driver of the market's growth is the growing need for interactive and educational toys that can offer kids pleasure and educational opportunities.

Additionally, government initiatives aid the expansion of the market such as, In February 2025, In the Union Budget 2025 address, the Finance Minister announced that the government would present a new program to strengthen the country's toy manufacturing industry. The scheme promotes the ‘Made in India’ brand, the initiatives seek to build clusters, skills, and manufacturing environment for toys that are sustainable, inventive, and of outstanding quality.

Report Coverage

This research report categorizes the internet-connected toys market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the excavator bucket market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the internet-connected toys market.

Driving Factors

The growing disposable income of middle-class families around the world, which has led to an increase in spending on high-end and technologically sophisticated toys, is one of the important growth contributors. Additionally, the market is growing due to the extensive use of smartphones and high-speed internet has made it easy for children to interact with toys associated with the internet, often associated with fellow apps, increasing their appeal to tech-loving children and parents. In addition, internet-connected toys that offer instructional and interactive content are becoming more and more popular, and are expected to significantly impact the market. Furthermore, the global market potential is increased and new development opportunities are introduced by the introduction of internet-connected toys involved in developing and emerging economies. Introduction and interesting internet-connected toys are being developed as a result of cooperation between toy manufacturers, technical firms, and material producers.

Restraining Factors

The internet-connected toys market faces challenges due to internet-connected toys regularly collecting and transmitting data, raising concerns about possible misuse of personal information. High-profile security incidents and unauthorized access incidents have raised these concerns, causing increasing investigations from officials and customers. To reduce these risks, manufacturers must have strong data security procedures and follow relevant laws. If these issues are not resolved, the company's reputation and the decline in customers may be damaged.

Market Segmentation

The internet-connected toys market share is classified into product type, age group, connectivity, and distribution channel.     

• The smart toys segment held a significant market share in 2023 and is estimated to grow at a CAGR of 9.34% throughout the projection period.

Based on the product type, the global internet-connected toys market is categorized into educational toys, smart toys, interactive toys, and others. Among these, the smart toys segment held a significant market share in 2023 and is estimated to grow at a CAGR of 9.34% throughout the projection period. This segment is expanding due to smart toys, which include robots, drones, and interactive dolls, which have gained immense popularity due to their capacity to engage kids in novel ways. In addition, these toys can respond to a child's activities and communicate with their surroundings since they frequently include sensors, cameras, and microphones built in. Furthermore, by combining AI and ML, these toys can learn from encounters and modify their behavior, offering a customized play experience.

• The 5-12 years segment accounted for the largest market share in 2023 and is expected to grow at a CAGR of 9.15% throughout the forecast period.

Based on the age group, the global internet-connected toys market is classified into 0-3 years, 3-5 years, 5-12 years, and 12 years and above. Among these, the 5-12 years segment accounted for the largest market share in 2023 and is expected to grow at a CAGR of 9.15% throughout the forecast period. This segment is growing because they are in a crucial phase in their social and cognitive development, children between the ages are more open to interactive and instructive toys. Additionally, the demand for internet-connected toys that can provide both enjoyment and educational opportunities and the growing acceptance of STEM education, are the main motivators for this age group. Furthermore, manufacturers are continuously innovating to satisfy the changing preferences of kids in this group.

• The wi-fi segment dominated the global internet-connected toys market share in 2023 and is anticipated to grow at the fastest CAGR during the forecast period.

Based on the connectivity, the global internet-connected toys market is divided into Bluetooth, wi-fi, and others. Among these, the wi-fi segment dominated the global internet-connected toys market share in 2023 and is anticipated to grow at the fastest CAGR during the forecast period. This segment is attributed to a prevalent characteristic of internet-connected toys is wi-fi connectivity, which allows them to interact with online information and deliver real-time feedback and updates. Additionally, toys that have wi-fi connectivity can play online multiplayer games, download new material, and link to companion apps. Also, the market driven by, many manufacturers favors wi-fi because of its simplicity of interaction with home networks and capacity to provide a variety of interactive features. 

• The online stores segment held a significant market share in 2023 and is anticipated to grow at a CAGR of 9.17% during the projected timeframe.

Based on the distribution channel, the global internet-connected toys market is divided into supermarkets/hypermarkets, convenience stores, specialty stores, online stores, and others. Among these, the online stores segment held a significant market share in 2023 and is anticipated to grow at a CAGR of 9.17% during the projected timeframe. This segment is fueled by the expanding e-commerce market. In addition, the segment is growing due to the ease of online shopping, a large selection of products, and affordable prices, several customers prefer to shop at online retailers. Additionally, e-commerce systems improve the purchasing experience by providing thorough product descriptions, user reviews, and tailored suggestions. This market is expanding as a result of the growing use of smartphones and the accessibility of high-speed internet.

Regional Segment Analysis of the Internet-Connected Toys Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the internet-connected toys market over the predicted timeframe.

North America is anticipated to hold the largest share of the internet-connected toys market over the predicted timeframe. The market is driven by a robust technology infrastructure and a high level of customer awareness. Additionally, the region's strong market share is a result of its well-established retail channels and high level of disposable income. In addition to a high rate of new technology adoption and a sizable number of top manufacturers, the US market is particularly crucial. It is anticipated that the North American market will continue to expand steadily due to new product introductions and continuous innovation.

Asia Pacific is expected to grow at the fastest CAGR growth of the internet-connected toys market during the forecast period. The market in this area is being driven primarily by rapid urbanization, the expansion of the middle class, and rising educational spending are the main causes of this rise. In addition to growing consumer expenditure on interactive and educational toys, China, India, and Japan are important regional marketplaces. The market's growth in this area is also being aided by the spread of e-commerce and the rising use of smartphones.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the internet-connected toys market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. 

List of Key Companies

• Lego Group
• Mattel Inc.
• Hasbro Inc.
• Ubtech Robotics Inc.
• DXTR Labs
• SmartGurlz Inc.
• Sphero Inc.
• VTech Holdings Ltd.
• LeapFrog Enterprises Inc.
• Playmobil (Brandstätter Group)
• Silverlit Toys Manufactory Ltd.
• Wonder Workshop Inc.
• Spin Master Corp.
• WowWee Group Limited
• Anki Inc.
• Fisher-Price Inc.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)  

Recent Development

• In August 2024, the AI-powered talking toy "Grok," was introduced by musician Grimes and the business Curio. Grok seeks to foster children's creativity and learning via interactive dialogues; nevertheless, preliminary evaluations have indicated that responsiveness and data privacy issues need to be addressed.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the internet-connected toys market based on the below-mentioned segments: 

Global Internet-Connected Toys Market, By Product Type

• Educational Toys
• Smart Toys
• Interactive Toys
• Others

Global Internet-Connected Toys Market, By Age Group

• 0-3 Years
• 3-5 Years
• 5-12 Years
• 12 Years and Above

Global Internet-Connected Toys Market, By Connectivity

• Bluetooth
• Wi-Fi
• Others

Global Internet-Connected Toys Market, By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others

Global Internet-Connected Toys Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa