Connected Toys Market Size & Growth Forecast 2027–2036, By Segments (Age Group, Interfacing Device, Distribution Channel, Application, Technology, Type), Regional Demand Trends (North America, Asia Pacific, Europe), Key Country Insights (U.S., Japan, South Korea, Germany, France, Italy), and Competitive Landscape

Market Size and Growth Outlook

Connected Toys Market size was over USD 16.53 billion in 2026 and is likely to grow at a 20.05% CAGR between 2027 and 2036, surpassing USD 102.78 billion by 2036. The industry revenue for 2027 is calculated at USD 19.32 billion.

• Base Year Value (2026): USD 16.53 billion
• CAGR (2027-2036): 20.05%
• Forecast Year Value (2036): USD 102.78 billion
• Historical Data Period: 2022-2026
• Largest Region: North America
• Forecast Period: 2027-2036

Connected Toys Market Intelligence Snapshot:

• Regional Market Dynamics:

  • North America held the largest share in 2026, supported by strong consumer spending, mature digital ecosystems, established toy brands, and widespread adoption of app-enabled connected devices.
  • Asia Pacific is projected to grow at 22.55% CAGR, driven by rising smartphone penetration, tech-savvy younger consumers, and increasing demand for interactive, digitally enabled toys.

• Segment Momentum:

  • The 9–12 years segment leads with a 42.4% share in 2026 due to stronger engagement with app-connected features, interactive gameplay, and longer usage cycles that appeal to both children and parents.
  • Wearables are the fastest-growing device type as they enable motion-based, immersive play experiences and hands-free interaction, expanding connected toys beyond smartphone-only control into more physical engagement formats.

• Market Expansion Drivers:

  • Growing demand for interactive STEM-based toys accelerating connected toy adoption among consumers.
  • Integration of AR and AI technologies enhancing personalization and engagement in smart toys.
  • Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems.

• Leading Market Participants:

  Leading companies in the connected toys market include LEGO A/S (Denmark), Hasbro, Inc. (United States), Mattel, Inc. (United States), Spin Master Corp. (Canada), VTech Holdings Ltd. (Hong Kong), Sony Group Corporation (Japan), Sphero, Inc. (United States), UBTECH Robotics Corp Ltd. (China), Wonder Workshop, Inc. (United States), WowWee Group Limited (Hong Kong).

Unlock Complete Insights

Global Market Forecast Snapshot:

• Market Outlook:

  • 2026 Market Size: USD 16.53 billion
  • 2027 Estimated Market Size: USD 19.32 billion.
  • Projected Market Size: USD 102.78 billion by 2036
  • Growth Forecasts: 20.05% CAGR (2027-2036)

• Regional and Segment Outlook:

  • Leading Regional Market: North America
  • High-Growth Regional Hub: Asia Pacific
  • Core Revenue Segment: 9-12 Years (Age Group) | Smartphones (Interfacing Device) | Online Retail (Distribution Channel) | Entertainment (Application) | Bluetooth (Technology) | App-Connected Toys (Type)
  • Emerging Opportunity Segment: 6-8 Years (Age Group) | Wearables (Interfacing Device) | Direct Sales (Distribution Channel) | Educational (Application) | Artificial Intelligence (AI) (Technology) | Voice-Activated Toys (Type)

Market Growth Drivers and Industry Trends

Growing demand for interactive STEM-based toys accelerating connected toy adoption among consumers

Growing interest in interactive learning and STEM-oriented play is creating stronger demand for connected toys market offerings that combine entertainment with educational engagement. Parents and consumers are increasingly seeking products that encourage problem-solving, experimentation, and active participation, making digitally enabled toys more attractive than conventional play formats. The ability to incorporate interactive features into educational play supports broader adoption across households looking for engaging learning experiences.

Integration of AR and AI technologies enhancing personalization and engagement in smart toys

The integration of AR and AI capabilities is making the connected toys market more engaging by enabling richer interactions and personalized play experiences. These technologies can support responsive gameplay, adaptive interactions, and digitally enhanced environments, allowing smart toys to deliver experiences that feel more dynamic to individual users. Greater personalization also strengthens the appeal of connected products among consumers seeking technology-enabled entertainment rather than static play experiences.

Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems

Partnerships between toy brands and digital content providers are strengthening the connected toys market by linking physical products with broader digital experiences. Access to complementary content can extend gameplay, introduce new interactive activities, and encourage continued engagement beyond the initial purchase. Such collaborations also allow connected toy offerings to participate in more comprehensive immersive ecosystems, increasing the value of digitally integrated play for consumers.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Growing demand for interactive STEM-based toys accelerating connected toy adoption among consumers	2.40%	Moderate	North America, Europe	High	Near Term
Integration of AR and AI technologies enhancing personalization and engagement in smart toys	2.00%	Moderate	Asia Pacific, North America	Medium	Mid Term
Expanding partnerships between toy brands and digital content providers strengthening immersive play ecosystems	1.70%	Low	Europe, Asia Pacific	Emerging	Mid Term

Regional Demand Dynamics

North America (Largest Region) vs Asia Pacific (Fastest-Growing Region)

In the connected toys market, North America held the largest share in 2026, supported by strong consumer adoption of smart home technologies, widespread digital connectivity, and high acceptance of interactive children’s products. Demand is reinforced by parents seeking toys that combine entertainment, learning, personalization, and digital engagement. The region also benefits from developed retail and e-commerce channels, established technology infrastructure, and growing interest in educational and STEM-focused play experiences. Increasing attention to data privacy and child safety is further shaping product development, encouraging manufacturers to strengthen security and parental control features.

Asia Pacific is emerging as the fastest-growing regional market, driven by expanding middle-class households, rising smartphone and internet penetration, and increasing consumer interest in technology-enabled learning and entertainment. Rapid urbanization and the expansion of e-commerce are improving access to connected toys across a broader consumer base. Growing investment in digital education and children's technology is also supporting demand, while manufacturers are increasingly incorporating artificial intelligence, voice interaction, and app-based functionality to align with evolving preferences for immersive and educational play.

Key Country Insights

United States

Interactive Learning Innovation

The U.S. connected toys market is driven by demand for educational entertainment that combines digital engagement with physical play. Manufacturers are prioritizing secure connectivity, personalized content, and companion applications that enhance long-term consumer engagement.

Japan

Character-Based Experiences

Japan is integrating connected technologies into toys featuring popular entertainment franchises and interactive storytelling. Japanese companies continue enhancing voice recognition, responsive features, and digital content to enrich children's play experiences.

South Korea

Smart Toy Development

South Korea is advancing connected toys through integration of artificial intelligence, robotics, and mobile applications. Companies in South Korea are developing interactive products that combine entertainment with educational functionality and digital connectivity.

Germany

Safe Digital Play

Germany emphasizes connected toys that comply with stringent safety and data privacy expectations. Toy manufacturers in Germany are investing in secure software platforms and educational features that strengthen consumer confidence and product value.

France

Educational Engagement Focus

France is seeing growing demand for connected toys that encourage learning while maintaining balanced digital interaction. French brands are emphasizing age-appropriate content, parental controls, and secure connectivity to support responsible product adoption.

Italy

Family-Centric Innovation

Italy is expanding connected toy offerings that combine interactive entertainment with educational value for family use. Italian distributors are introducing connected play products featuring intuitive interfaces and multilingual capabilities to appeal to diverse consumer preferences.

Segment Leadership and Growth Trends

 

Age Group Segment Analysis: 9-12 Years (Largest Segment) vs 6-8 Years (Fastest-Growing Segment)

In the connected toys market, the 9-12 years segment held the largest share of 42.4% in 2026, supported by children's greater familiarity with interactive digital experiences and their ability to engage with connected features more independently. Toys designed for this age group can incorporate interactive play, digital connectivity, educational content, and personalized experiences that align with increasingly sophisticated preferences. The combination of physical play with technology-enabled functionality also strengthens their appeal among children and supports continued interest from parents seeking engaging and technology-oriented products.

The 6-8 years segment is experiencing faster adoption as connected play becomes more accessible to younger children. Products designed for this age group can combine simple interactive functions with educational and entertainment-oriented experiences, encouraging early engagement with connected technology. Increasing parental interest in toys that blend learning, creativity, and digital interaction is supporting demand, while improvements in user-friendly interfaces are making connected products more suitable for younger users.

Interfacing Device Segment Analysis: Smartphones (Largest Segment) vs Wearables (Fastest-Growing Segment)

Smartphones represented the largest interfacing device segment in 2026, reflecting their widespread availability and established role as a gateway for controlling and interacting with connected toys. Smartphone-based interfaces allow users to access companion applications, manage toy functions, and engage with digital content through a familiar device. Their broad compatibility and convenience make smartphones a practical choice for households adopting connected toys, while the integration of app-based features expands the range of interactive experiences available to users.

Wearables are gaining traction as connected toy interfaces as consumers increasingly favor more immediate and portable forms of interaction. Wearable devices can enable hands-free engagement and support personalized experiences without requiring continuous access to a smartphone. Their integration with interactive toys also creates opportunities for movement-based activities, responsive play, and more immersive experiences, strengthening their relevance as connected play evolves toward more seamless technology integration.

Report Segmentation
Segment	Sub-Segment	Largest Segment	Fastest Growing Segment
Age Group	0- 5 Years, 6-8 Years, 9-12 Years, Teenagers (13-19 Years)	9-12 Years	6-8 Years
Interfacing Device	Smartphones, Tablets, Consoles & PCs, Wearables	Smartphones	Wearables
Distribution Channel	Online Retail, Offline Retail, Specialty Stores, Direct Sales	Online Retail	Direct Sales
Application	Educational, Entertainment, Fitness and Health, Security and Monitoring	Entertainment	Educational
Technology	Wi-Fi, Bluetooth, Radio Frequency Identification (RFID)or Near Field Communication (NFC), Artificial Intelligence (AI), Augmented Reality (AR)and Virtual Reality (VR)	Bluetooth	Artificial Intelligence (AI)
Type	App-Connected Toys, Voice-Activated Toys, Screenless Connected Toys, Smart Toys with Wearable Integration, Robotics & Programmable Toys, Smart Action Figures and Dolls	App-Connected Toys	Voice-Activated Toys

Competitive Landscape and Market Positioning

Major players in the connected toys market:

1. LEGO A/S (Denmark)

2. Hasbro Inc. (United States)

3. Mattel Inc. (United States)

4. Spin Master Corp. (Canada)

5. VTech Holdings Ltd. (Hong Kong)

6. Sony Group Corporation (Japan)

7. Sphero Inc. (United States)

8. UBTECH Robotics Corp Ltd. (China)

9. Wonder Workshop Inc. (United States)

10. WowWee Group Limited (Hong Kong)

Interactive digital technologies are reshaping engagement experiences in the connected toys market. Continuous innovation is integrating smart features that enhance learning and entertainment value. The market is evolving through immersive play solutions that combine physical interaction with digital connectivity.

Industry Development/News

Company Name	Date	Key Development
LEGO	Feb-26	LEGO introduced its Smart Bricks platform, integrating lights, sound, and sensor technologies into traditional construction blocks. The initiative enhances physical-digital play integration by enabling interactive and sensor-driven building experiences, strengthening LEGO’s position in the evolving connected toys segment through embedded technology capabilities.
Mattel and OpenAI	Jun-25	Mattel entered a strategic partnership with OpenAI to develop AI-enabled toys across major brands, including Barbie. The collaboration focuses on embedding conversational AI and interactive digital capabilities into toys, representing a significant shift toward intelligent, adaptive play systems within the connected toys market ecosystem.
GUND	Sep-24	GUND, a Spin Master company, partnered with Disney to launch a co-branded plush toy collection featuring Disney characters. The initiative integrates licensed character IP with GUND’s product design capabilities, reinforcing the role of cross-brand collaborations in expanding interactive and collectible segments within connected and experiential toy categories.
Sony Interactive Entertainment Europe	Jul-24	Sony Interactive Entertainment Europe collaborated with Spin Master to launch The Shapes Collection, a toy line based on PlayStation Studios intellectual property including God of War Ragnarök and Horizon Forbidden West. The initiative extends gaming IP into physical collectibles, strengthening convergence between digital entertainment ecosystems and toy manufacturing.
Hasbro	Apr-24	Hasbro signed a licensing agreement with Playmates Toys to produce and distribute Power Rangers toys, including a focus on the Mighty Morphin Power Rangers series. The agreement expands Hasbro’s ecosystem of licensed toy production and supports continued commercialization of established entertainment IP within the connected and branded toy segment.
The LEGO Group	Mar-23	The LEGO Group increased production capacity and expanded its manufacturing footprint, including ramping up output across three factories and opening 155 branded retail stores. These operational expansions were implemented to address rising demand and reinforce global distribution and supply capabilities within its construction-based toy ecosystem.
Mattel, Inc.	Jun-22	Mattel expanded its Mattel PlayBack program to include Fisher-Price toys, extending its toy circularity and take-back initiative across additional brands. The program enables product recovery and reuse across Barbie, MEGA, Matchbox, and Fisher-Price lines, strengthening sustainability-linked engagement within the broader toy ecosystem.
LEGO Group and Universal Products & Experiences	May-25	LEGO Group and Universal Products & Experiences launched LEGO sets based on DreamWorks Animation’s Gabby’s Dollhouse: The Movie, targeting children aged four and above. The collaboration extends licensed IP integration into physical construction toys, supporting cross-media commercialization strategies within the connected toys ecosystem.