Global Connected Toys Market to Reach USD 39.7 Billion by 2030

According to the latest market research study published by P&S Intelligence, the global connected toys market is on a remarkable growth trajectory. According to the report, the market is estimated to produce USD 11.8 billion in revenue in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 22.4% between 2025 and 2030, reaching USD 39.7 billion by 2030.

This surge is being fuelled by a rising preference among parents and children for interactive toys that combine entertainment, education, and connectivity. As digital literacy and disposable incomes increase globally, demand for toys that deliver educational value, gamified learning, and personalized play experiences continues to rise.

At the intersection of entertainment, education and technology, the connected toys market is evolving rapidly. Fueled by innovations in AI, augmented reality (AR), voice recognition, and cloud-based services, the market is poised to shape how children learn and play in the coming years — provided that companies successfully balance innovation with safety and educational value.

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Key Insights

• In 2024, the education segment is the major revenue contributor, accounting for 55% of the market, as growing global emphasis on STEM education and digital literacy drives adoption of educational connected toys.
• The entertainment segment is poised to become the fastest-growing application area from 2025 to 2030 (expected CAGR of ~24%), driven by increasing integration of AR/VR, interactive storytelling, role-playing toys, and multi-device social gaming.
• By age group, toys for children aged 6–8 years dominate the market in 2024, contributing around 40% of revenue. This reflects strong parental interest in early STEM education and children’s ability to handle moderately advanced toy interfaces.
• The 9–12 years age group is forecasted to grow the fastest (2025–2030) — with a CAGR of ~25%, as pre-teens increasingly engage in coding, robotics, project-based learning, and smartphone-enabled gaming experiences.
• On the technology front, Bluetooth-enabled toys lead in 2024 (≈ 60% revenue share), thanks to low energy consumption and ease of pairing with smartphones or tablets — practical for battery-operated toys.
• Meanwhile, Wi-Fi–enabled toys are expected to grow rapidly through 2030 (CAGR ~23%), as demand increases for toys with direct internet connectivity, cloud-based updates, real-time multiplayer capabilities, and integration with smart-home ecosystems.
• Distribution channels show that offline sales dominate currently (≈ 60% revenue in 2024), reflecting parental preference for in-store shopping where children can see and physically interact with toys before purchase.
• However, the online channel is emerging as the fastest-growing route (expected CAGR ~26% through 2030), driven by broader product selection, convenience of home delivery, and personalized recommendation engines on e-commerce platforms. 
• Regionally, North America holds the largest market share in 2024 (≈ 40%), reflecting high disposable incomes, early tech adoption, and a strong presence of major toy manufacturers and tech companies. 
• The Asia-Pacific region is projected to be the fastest-growing market during 2025–2030 (CAGR ~27%), driven by a large young population (notably in China and India), rising smartphone penetration, increasing middle-class incomes, and growing parental emphasis on STEM education.
• The market remains fragmented with strong competition among a wide range of players — from global toy giants to niche robotics and smart-toy makers. Major players listed include Mattel Inc., The LEGO Group, Hasbro Inc., Sphero Inc., KONAMI, Basic Fun Inc., Sony Corporation, PlayFusion Ltd., Bandai Namco Entertainment Inc., Wonder Workshop Inc., and WowWee Group Limited. 
• While technological innovation, growing digital literacy among children, rising disposable incomes, demand for gamified and personalized learning, cloud-computing infrastructure, and corporate investments are key drivers, the market also faces challenges — notably high development and production costs. Designing connected toys requires advanced hardware, software, quality control, data-security compliance and ongoing updates, which together increase manufacturing and operational costs.