Smart Toys Industry Overview
The global smart toys market size is expected to reach USD 34.13 billion by 2028, based on a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 16.5% from 2021 to 2028. The rise in disposable income, coupled with the growing demand for coding skills, is fueling the growth of the market. The growing importance of coding and STEM learning in schools and other organizations is propelling the demand for smart toys. The use of educational robots in classrooms for storytelling and play-to-learn interactive tablet toys help in delivering superior gaming and learning experience to students and players.
Key players in the market are utilizing TV media and famous cartoon characters to capitalize on branded content to improve the entertainment value. The inclusion of social media and OTT platforms provides companies in the market to garner a larger consumer base in the market. Dora the Explorer and Sesame Street are some of the famous cartoons that are interactive.
Further, key players like Mattel Inc. and Hasbro Inc. have reported an increase of 4% increase in revenue in the last quarter of 2020. The lockdown orders in several parts of the world led to the majority of time spent with family, thereby increasing the sales of board games and cards. Companies in the market optimized the use of online retailing by providing discounts and offers to consumers to increase revenue. For instance, as per Spielwarenmesse, a fair organizer has reported that several independent retailers during the pandemic shifted to online operations to survive during the pandemic.
Smart Toys Market Segmentation
Grand View Research has segmented the global smart toys market based on product, distribution channel, and region:
Based on the Product, the market is segmented into Interactive Games, Robots, and Educational Robots.
- The interactive games segment held the largest revenue share of over 85.0% in 2020 owing to the growth of edutainment services, coupled with high smartphone penetration. Interactive games are a fun way to learn and explore creative knowledge in a new way. Interactive games challenge players to solve puzzles in a virtual setting.
- The educational robotssegment is anticipated to expand at the fastest CAGR over the forecast period. Smart robot toys are useful for boosting creativity, problem-solving ability, communication, and teamwork. These robots are usually operated through remote control or can be operated through a smartphone or a tablet. Key players in the market are introducing robots that are compatible either through Android or iOS devices.
Based on the Distribution Channel, the market is segmented into Online, and Offline.
- The offline channel segment accounted for the largest revenue share of over 60.0% in 2020. The changing landscape for distribution channels has increased the competition among both online and offline retailers. Consumers opting for smart toys are demanding immersive experiences from brands. One of the key players in the smart toy industry, Hasbro is partnering with retailers such as Target and Walmart to expand its business.
- The online segment is expected to register the fastest CAGR of 17.0% over the forecast period. E-commercechannel provides consumers with several options. During the pandemic, the sales of educational toys were affected and several toymakers had to shift their operations virtually. The availability of toys online allows key players to diversify by adopting social advertising of their products and utilizing TV media to cater to a larger consumer base.
Key Players Market Share Insights
The key players in the smart toy industry depict a strong geographical presence. Key players in the industry are adopting e-commerce and social media platforms to expand their consumer base. Recent developments in the market primarily include new product launches, mergers and acquisitions, and the opening of new stores to increase customer reach. For instance, in 2020, Mattel Inc. partnered with Universal Brand Development to launch Netflix TV series based on Spirit Riding Free. The partnership is expected to aid Mattel to extend their range of toys in the Spirit Riding Free category.
In another instance, in February 2018, Hasbro entered into an agreement with Netflix to create play experiences for kids based on the Netflix show super monster. The agreement will help the company to produce a wide range of toys under the Playskool brand. In December 2020, Lego Group announced to open its first Lego retail store in Salt Lake City in Utah, the U.S. The store provides immersive experiences for the customers with the inclusion of a wide range of toys. Some prominent players in the global smart toys market include:
- Playmobil
- Pillar Learning
- Sega Toys Co. Ltd.
- LeapFrog Enterprises Inc.
- Mattel Inc.
- Hasbro Inc.
- Lego System A/S
- Robofi LLC
- Tomy Co. Ltd.
- Doctor's Associates Inc.
Order a free sample PDF of the Smart Toys Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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