The smart toys market is poised for rapid expansion over the next decade as parents and schools increasingly choose connected, STEM-oriented toys that build learning and critical thinking skills. According to Smart Toys Market , a study by Polaris Market Research, the market is forecast to grow from USD 15.10 billion in 2023 to USD 59.74 billion by 2032, registering a CAGR of 16.5% during 2023–2032.

The study assesses market size, segment performance, regional demand, and competitive activity, giving stakeholders a reliable basis for planning and investment.

Report Highlights

• Global market revenue stood at USD 15.10 billion in 2023.
• Revenue is expected to climb to USD 59.74 billion by 2032 at a CAGR of 16.5%.
• By product type, interactive games captured the largest share in 2022.
• Educational toys are projected to expand at the fastest pace over the forecast period.
• North America held the largest regional share in 2022, while Asia Pacific is set to grow the fastest.

Market Overview

Smart toys are interactive, connected products that use sensors, AI, and wireless connectivity to make play more responsive and educational. From coding robots to app-linked games, they help children build problem-solving and creative skills, and they are gaining ground as families seek learning that feels like play.

Browse Insights:

https://www.polarismarketresearch.com/industry-analysis/smart-toys-market

Growth Factors at a Glance

The report evaluates the factors expected to have the greatest influence on the smart toys market, along with the relative strength of their impact over the forecast period.

Trend to Watch: AI-Enabled Companion and Learning Toys

Toymakers are moving beyond simple app connectivity toward AI-driven play. Sega Toys introduced an AI-enabled robotic cat in 2024, while Mattel partnered with OpenAI on AI-powered toys. The shift affects manufacturers, parents, and educators, and could reshape product design and brand competition by 2032.

Segment Insights

The smart toys market is segmented by product type, distribution channel, technology, and region. Key findings from the segmental analysis include:

• By Product Type: The interactive games segment held the largest share in 2022, owing to smartphone penetration and edutainment growth.
• By Distribution Channel: The offline segment led in 2022, as buyers can check toy quality in person; online is projected to grow fastest.
• By Technology: The Bluetooth segment dominated, driven by seamless toy-to-app control and mid-range tablet and smartphone adoption.

Regional Insights

• North America: The largest share in 2022, aided by smart home adoption, strong purchasing power, and large vendors.
• Europe: Rising disposable income in the U.K. and France, alongside AR and VR uptake, supports technology-led toys.
• Asia Pacific: The fastest-growing region, propelled by an expanding middle class and preference for smart educational toys.
• Latin America: Brazil is cited among markets where mid-range smartphones and tablets support Bluetooth-enabled toys; Mexico and Argentina are also covered.
• Middle East & Africa: The report covers Saudi Arabia, the UAE, Israel, and South Africa.

Competitive Landscape

The smart toys market is highly competitive, with rivalry rated high in the report’s Porter’s Five Forces analysis. Participants compete on product innovation, novel designs, and retail and online reach, strengthening positions through launches, collaborations, and acquisitions.

Major companies operating in the market include LeapFrog Enterprises, Mattel, Hasbro, Lego Systems, Robofi LLC, Sega Toys, Tomy Co., Doctor’s Associates, Playmobil, Pillar Learning, Dash Robotics, Bots Alive Robot Toys, Konami Corporation, Indiegogo, Jakks Pacific, and Dream International.

Recent Industry Developments

• June 2025: Mattel partnered with OpenAI to develop AI-powered toys for consumers aged 13 and above, with a focus on safety standards.
• February 2024: Sega Toys introduced KIMIT Ragdoll, an AI-enabled robotic pet developed with Elephant Robotics.

Who Should Read This Report?

The study is designed for toy manufacturers, edtech developers, retailers, investors, and new entrants seeking to understand demand, benchmark competitors, and identify high-growth opportunities.

Outlook

Over the forecast period, the smart toys market is expected to be shaped by deeper AI and IoT integration and rising demand for education-focused products. Companies aligned with these shifts are likely to capture emerging demand. The complete report, Smart Toys  offers detailed forecasts and analysis to support strategic decision-making.

About Polaris Market Research & Consulting, Inc.

Polaris Market Research & Consulting, Inc. is a market research and consulting company offering syndicated research reports, customized research, and consulting services across 20+ industry verticals. Its library of 5,000+ reports helps businesses, investors, and decision-makers understand market size, competitive dynamics, and emerging opportunities in their industries.

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