UK Smart Toys Market Insights Forecasts to 2033

• The UK Smart Toys Market Size was valued at USD 0.78 Billion in 2023.
• The Market Size is Growing at a CAGR of 11.22% from 2023 to 2033
• The UK Smart Toys Market Size is Expected to Reach USD 2.26 Billion by 2033

The UK Smart Toys Market is anticipated to exceed USD 2.26 billion by 2033, growing at a CAGR of 11.22% from 2023 to 2033. The growing adoption of smart devices, the growing popularity of digital platforms among children, and the integration of augmented reality (AR) and virtual reality (VR) technologies in smart toys are driving the growth of the smart toys market in the UK.     

Market Overview

A smart toy is an interactive toy that effectively has its intelligence by on-board electronics. Smart toys can offer a range of benefits for children, including cognitive, social, and emotional development. They can encourage learning through play, enhance fine motor skills, improve language abilities, and promote creativity. Additionally, smart toys can provide children with entertainment and stimulation, helping keep them engaged and interested in learning. Educational toys for kids are a great way to engage children in learning activities as most of their education is read-write-based only.  Virtual Reality and Augmented Reality Games are seemingly two of the most promising technologies. Both augmented reality and virtual reality have a huge impact on the gaming domain. Before these technologies, games were just played but now games are experienced. The integration of these latest technologies helps in acquiring a lot of personal and interpersonal skills for the kids.

Report Coverage

This research report categorizes the market for the UK smart toys market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the smart toys market. Recent market developments and competitive strategies such as expansion, product launch, and 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 United Kingdom smart toys market.

Driving Factors

Sensors, connectivity, and other digital technologies create toys that can interact with the internet and other devices. Thus, the growing integration of the Internet of Things (IoT) in toys is enhancing the market demand owing to its enhanced functionality and potential to provide interactive play experiences. By making eco-friendly toys, toy brands can not only reduce their environmental impact but also appeal to environmentally conscious consumers. The 2021 Kids & Family Industry Report shows that 69% of European toy companies are integrating sustainability into their manufacturing processes. As more consumers prioritize environmentally responsible options, smart toys that align with these values gain a competitive edge in the market. These smart home technologies, equipped with voice assistants and automated features, extend their reach to create a child-centric environment and become helpful for busy parents. Owing to the above factors, the rising adoption of integrated smart toys in the UK leads to drive the market growth.

Restraining Factors

The threat to the safety and privacy of children and their parents hamper the market of smart toys. Further, spending excess time with toys may negatively affect the concentration level of children, which results in limiting the thinking capacity of the children. This may lead to impeding the market.

Market Segmentation

The UK Smart Toys Market share is classified into product and distribution channel.

• The interactive games segment accounted for the largest revenue share of the UK smart toys market in 2023.

The UK smart toys market is segmented by product into interactive games, robots, and education toys. Among these, the interactive games segment accounted for the largest revenue share of the UK smart toys market in 2023. The integration of augmented reality technology in interactive smart toys provides a unique and immersive play experience. Thus, the rising need for technological advancement in children's learning leads to enhanced market growth in the interactive segment.

• The offline segment accounted for the largest revenue share of the UK smart toys market in 2023.

Based on the distribution channel, the UK smart toys market is divided into online and offline. Among these, the offline segment accounted for the largest revenue share of the UK smart toys market in 2023. The purchasing of products from offline channels allows children to physically interact with smart toys before making a decision. Offline buying of products offers reassurance as well as reduces uncertainties associated with online purchases.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the UK smart toys market along with a comparative evaluation primarily based on their product 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 product 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 System A/S
• MindWare, Inc
• Dynepic
• Neurala
• LeapFrog Enterprises Inc.
• Sphero, Inc.
• Hasbro
• Lego System A/S
• Arduino
• Mattel, Inc.
• Others

Key Target Audience

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

Recent Developments

• In February 2024, Sega Toys (Shinagawa-ku, Tokyo) announced “KIMIT Ragdoll,” a realistic cat-like pet robot that utilizes AI technology to pursue “cat-likeness”.

Market Segment

This study forecasts revenue at UK, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the UK Smart Toys Market based on the below-mentioned segments

UK Smart Toys Market, By Product

• Interactive Games
• Robots
• Education Toys

UK Smart Toys Market, By Distribution Channel

• Online
• Offline