GVR Report cover Smart Toys Market Size, Share & Trends Report

Smart Toys Market Size, Share & Trends Analysis Report By Product (Interactive Games, Robots, Educational Toys), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2021 - 2028

  • Report ID: GVR-4-68039-906-6
  • Number of Pages: 80
  • Format: Electronic (PDF)

Report Overview

The global smart toys market size was valued at USD 10.11 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 16.5% from 2021 to 2028. A rise in the middle-class population, coupled with the rising smartphone penetration, is a major factor fueling the market growth in the forecast period. Furthermore, the increasing awareness regarding smart toys through tablets, smartphones, and social media platforms is encouraging customers to adopt technology-led toys.

U.S. smart toys market size, by product, 2018 - 2028 (USD Billion)

The Covid-19 pandemic has impacted the toy industry owing to the rising cases and disruption in the supply chain. Additionally, labor restraints impacted the demand for smart toys in the early months of the pandemic. During the pandemic, the support of social media platforms and the influence of the TV and media industry supported the industry growth.

Key players like Hasbro are introducing television series and videos based on famous movies such as Frozen and Mulan. Key players in the industry are increasing the adoption of e-commerce and social media platforms to expand their consumer base. The growing importance of education-based learning is acting as an opportunity for key players to introduce learning toys equipped with technologies such as IoT and Artificial Intelligence (AI).  

Key players operating in the smart toys industry have also 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.

Product Insights

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. These games can also be used in preschool learning for understanding letters and alphabets. Additionally, The Lego Group offers LEGO dimensions, which use NFC technology to interact with players. 

The educational robots segment 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.

Distribution Channel Insights

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 company is also utilizing its warehouse in the Midwest U.S. to reduce delivery and trucking mileage. 

Global smart toys market share, by distribution channel, 2020 (%)

The online segment is expected to register the fastest CAGR of 17.0% over the forecast period. E-commerce channel 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. Parents now have the option of comparing prices and the online channel gives the ability to choose between different retailers.

Regional Insights

In 2020, North America held the largest revenue share of over 40.0%. The rising adoption of smart home devices is driving the demand for smart toys in the region. As per Acquity Group’s study, the consumption of in-home smart products is on the rise in the U.S. 30% of the consumers own smart IoT devices in the country. The market in the Asia Pacific is expected to witness the fastest growth in the forecast period.

A rise in the middle-class population, coupled with the growing preference for educational learning toys, is driving the demand for smart toys in the APAC region. Lego Group has been witnessing a steady demand in the region owing to its wide distribution network and engagement rate with customers. For instance, The LEGO Group is expanding its presence in Singapore by investing in the development of the digital industry in the country. The key player has partnered with Singapore’s Economic Development Board to increase the company’s reach in East Asia.

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.

Smart Toys Market Report Scope

Report Attribute


Market size value in 2021

USD 11.72 billion

Revenue forecast in 2028

USD 34.13 billion

Growth rate

CAGR of 16.5% from 2021 to 2028

Base year for estimation


Historic data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million & CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors and trends

Segments covered

Product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central and South America; MEA

Country scope

U.S.; U.K.; Germany; China; Japan; Brazil; South Africa

Key companies profiled

Playmobil; Pillar Learning; Sega Toys Co. Ltd.; Leapfrog Enterprises Inc.; Mattel Inc.

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global smart toys market report based on product, distribution channel, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • Interactive Games

    • Robots

    • Educational Robots

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

    • Online

    • Offline

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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