In this report, the Connected Toys Market has been segmented by Interacting Device, Type of Toy, Usage Purpose, Technology and Geography.

Connected Toys Market, Segmentation by Interacting Device

The Connected Toys Market has been segmented by Interacting Device into Smartphone Connected Toys, APP-Connected Drones, Console Connected Toys, and Tablet Connected Toys.

Smartphone Connected Toys
Smartphone connected toys make up a significant portion of the connected toy market, driven by the widespread use of mobile devices among children and parents. These toys often use Bluetooth or Wi-Fi to link with smartphones, allowing real-time interactions and updates. Around 38% of connected toy users prefer smartphone integration due to its convenience and compatibility.

APP-Connected Drones
APP-connected drones are gaining traction in the toy market, appealing especially to older children and teenagers interested in tech-based play. These drones can be controlled via dedicated apps that offer enhanced features like camera control and GPS tracking. Nearly 25% of the connected toy market consists of app-controlled drones.

Console Connected Toys
Console connected toys integrate with gaming systems like PlayStation, Xbox, or Nintendo, enriching the gaming experience through physical interaction. These toys are popular in gaming households and account for approximately 20% of the connected toys market.

Tablet Connected Toys
Tablet connected toys are tailored for educational and interactive play, especially for younger children. They connect through apps on tablets to deliver engaging content, such as STEM learning games or story-based activities. This segment holds around 17% market share in the connected toy industry.

Connected Toys Market, Segmentation by Type of Toy

The Connected Toys Market has been segmented by Type of Toy into Action Figures, Dolls, and Plush Toys.

Action Figures
Action figures dominate the connected toy segment for interactive play, especially among young boys and pre-teens. These toys often feature motion sensors, voice recognition, and app connectivity to enhance engagement. Approximately 42% of connected toy users show preference for action figures due to their dynamic features and storyline integration.

Dolls
Connected dolls are increasingly popular among young girls, offering features like speech interaction, adaptive behavior, and customizable responses. These toys are often designed for emotional engagement and educational play. They make up about 33% of the connected toys market, driven by growing demand for smart, responsive companions.

Plush Toys
Plush toys have evolved beyond softness to include interactive features like touch sensors, soothing sounds, and sleep tracking. Ideal for toddlers and young children, they focus on comfort while integrating technology for a more immersive experience. This subsegment accounts for roughly 25% of the connected toy market.

Connected Toys Market, Segmentation by Usage Purpose

The Connected Toys Market has been segmented by Usage Purpose into Entertainment and Education.

Entertainment
Entertainment-focused connected toys dominate the market by offering features such as interactive gameplay, augmented reality, and motion-based controls. These toys are designed to enhance fun and engagement through digital interactivity. With around 60% market share, they appeal broadly to children seeking dynamic and tech-driven play experiences.

Education
Education-oriented connected toys are tailored to promote learning through play, incorporating elements like STEM activities, language development, and problem-solving tasks. These toys are favored by parents and educators aiming to make playtime both fun and informative. They represent about 40% of the market, reflecting a strong shift toward smart educational tools in early childhood development.

Connected Toys Market, Segmentation by Technology

The Connected Toys Market has been segmented by Technology into Wi-Fi, Bluetooth, and RFID/NFC.

Wi-Fi
Wi-Fi-enabled connected toys offer real-time connectivity and access to cloud-based content, making them ideal for features like remote updates, live interaction, and voice assistant integration. These toys are widely adopted for their advanced functionality and make up about 48% of the connected toys market.

Bluetooth
Bluetooth technology is commonly used in connected toys due to its low power consumption and easy device pairing. It enables seamless connection to smartphones and tablets, facilitating short-range interactions and offline play. Bluetooth-based toys account for approximately 37% of the market.

RFID/NFC
RFID and NFC technologies are used in toys for touch-based interaction and identity recognition. These toys are especially popular in gaming ecosystems and educational kits, offering unique personalization features. This segment contributes around 15% to the connected toy technology market.

Connected Toys Market, Segmentation by Geography

In this report, the Connected Toys Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Connected Toys Market Share (%), by Geographical Region

North America
North America leads the connected toys market with high adoption rates of smart technologies and a strong presence of leading toy manufacturers. The region accounts for approximately 35% of global market share, driven by strong consumer demand and high disposable income.

Europe
Europe follows closely, with growing interest in educational toys and sustainable tech integration. The market benefits from supportive regulations and a tech-savvy population, contributing to around 28% of the total market.

Asia Pacific
Asia Pacific is the fastest-growing region, fueled by increasing urbanization, rising middle-class income, and expanding access to smart devices. The region holds nearly 22% market share, with countries like China, Japan, and India driving demand.

Middle East and Africa
The Middle East and Africa region is witnessing gradual growth, supported by improved internet penetration and a younger demographic profile. Though still emerging, it contributes about 8% to the global connected toys market.

Latin America
Latin America shows potential for growth with increasing interest in digital learning tools and entertainment-based toys. Brazil and Mexico lead the region, which holds nearly 7% of the total market share.

This report provides an in depth analysis of various factors that impact the dynamics of Global Connected Toys Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity

Drivers

• Growing Awareness of STEM Education
• Rise in disposable household income

• Growing demand for personalization trends - The increasing consumer preference for personalized experiences is a major driver of growth in the global connected toys market. Modern parents and children are seeking toys that go beyond basic interactivity by offering customized responses, adaptive learning paths, and user-specific features. Connected toys integrated with AI and data analytics can adjust to a child’s learning pace, interests, and behavior, creating a more engaging and meaningful play experience. This trend aligns closely with broader shifts toward individualized digital engagement across industries.

  As personalization becomes a key differentiator, manufacturers are leveraging technologies such as machine learning, voice recognition, and cloud connectivity to enhance user interaction and retention. The ability to deliver dynamic, tailored content not only improves child development outcomes but also fosters brand loyalty. With consumers increasingly valuing toys that cater to unique developmental needs and preferences, the demand for smart, customizable connected toys is expected to grow substantially, driving innovation and investment in this evolving market.

Restraints

• Limited lifespan of device batteries
• Challenges from regulatory compliance

• Widening digital access divide - The widening digital access divide remains a critical restraint for the growth of the global connected toys market. While these toys rely on internet connectivity, smart devices, and app-based controls to deliver personalized and interactive experiences, not all regions or households have equal access to such infrastructure. Children in rural or economically disadvantaged areas often lack the reliable internet connectivity and compatible hardware required to fully benefit from connected toy functionalities. This disparity limits the market’s reach and creates an uneven user base.

  Moreover, the digital divide reinforces social and educational inequality, as children with greater access to connected technologies gain enhanced cognitive and developmental advantages over their peers. As the cost of smart toys and supporting technologies remains high in many regions, affordability continues to be a barrier for large-scale adoption. Unless there is a concerted effort to bridge this technological accessibility gap, the full potential of connected toys will remain unrealized, especially in developing and low-income markets.

Opportunities

• Collaborations and Partnerships
• Integration with Educational Curricula

• Eco-friendly and Sustainable Toys - The rising consumer awareness of environmental issues presents a significant opportunity for growth in the global connected toys market through the development of eco-friendly and sustainable toys. Parents are increasingly seeking products that align with their values around sustainability, including toys made from recyclable materials, low-energy components, and ethically sourced parts. By integrating smart technology with green design principles, manufacturers can attract environmentally conscious consumers while also contributing to broader sustainability goals.

  Innovations in biodegradable plastics, modular design, and energy-efficient electronics allow companies to create connected toys that are both technologically advanced and environmentally responsible. Brands that adopt transparent sustainability practices and highlight their eco-credentials can differentiate themselves in a competitive market. As regulatory bodies and consumers put greater pressure on the toy industry to reduce its ecological footprint, the shift toward sustainable connected toys offers long-term growth potential and strengthens brand trust among eco-aware families.

Key players in Global Connected Toys Market include:

• Mattel
• Hasbro
• LEGO Group
• Sphero
• Sony
• Playmobil
• Bandai Namco
• KNEX
• Konami
• Wonder Workshop
• PlayFusion
• Anki
• WowWee
• DXTR Labs
• Leka

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis