Smart Ai Toys Market | Contrive Datum Insights

Market Overview

Global Smart AI Toys market was valued at USD 12.143 billion in 2022, and is projected to reach USD 36.377 billion by 2030 growing at a CAGR of 14.7 % during the forecast period 2022 to 2030.

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From 2022 to 2030, The fast growth of the Internet of Things has led to a rise in smart, connected gadgets that can be used for many different things. The Internet of Things (IoT), Artificial Intelligence (AI), Smart Devices, and many other technologies are used in smart toys to help children learn and have more fun.At a yearly growth rate of 18.0%, the size of the global smart toys market went from $12.14 billion in 2022 to $13.92 billion in 2023. At least in the short run, the Russia-Ukraine war made it harder for the world economy to get back on its feet after the COVID-19 pandemic. The war between these two countries has caused economic bans on many other countries, a rise in commodity prices, and problems in the supply chain. This has caused prices of goods and services to go up and has hurt many markets around the world. At a CAGR of 14.7%, the market size for smart toys is projected to grow to $36.377 billion by 2030.

The growth of the market in the next few years will be driven in large part by the growing number of people in the middle class and the number of people who own smartphones. Also, customers are more likely to buy technology-driven toys because computers, smartphones, and social media are making people more aware of smart toys.

With built-in software that can recognize words and images, connect to apps, work with RFID tags, and search the web, these toys give kids a personalized way to play. For example, CogniToys' Dino uses Wi-Fi to stay linked and IBM Watson's natural language processing technology to adapt its answers to the child's age and skill level.?

The fast growth of the Internet of Things has led to the rise of smart, connected gadgets that can be used for a wide range of tasks. Smart AI toys use technologies like the Internet of Things (IoT), artificial intelligence (AI), smart gadgets, and more to help kids learn and have fun. The toy gives kids a personalized play experience because it has built-in software that can recognize sound and image, work with apps, read RFID tags, and let kids browse the web. For example, CogniToys' Dino stays connected with Wi-Fi and uses IBM Watson's natural language processing technology to adapt its answers to the child's age and skill level.

One of the main things causing the demand for smart AI toys is the use of STEM (science, technology, engineering, and math) toys to improve children's skills. Smart AI toys improve skills like coding and engineering by letting kids connect with them and learn from their actions. Parents always want to buy their kids things that will help them learn and grow, which will make smart AI toys even more popular. SmartGurlz toys and other firms teach girls how to code. There are many features, like direct and two-way communication that helps personalize the toy, real-time tracking of children's activities, and the ability to keep personal information like the child's name, photos, and voice recordings. Smart AI toy bears are sold by companies like Fisher-Price. You can use the smart AI toys app on your phone to handle the bears. Over the next few years, the market is likely to be driven by these new ideas. During the forecast period, the rise of 5G technology is likely to increase the use of smart gadgets and toys. 

Market Dynamics

Key Trends: Rising and growing power among people

People with more money to spend, especially in emerging economies like India, Canada, Mexico, the Middle East, and other places, are more likely to use advanced technologies like smart home devices and technologies like IoT, AI, and others. For example, the Internet Society says that peak traffic went from being expected to be 28% to being 47%. This is because there are more people working from home, more children learning online, and more people looking for fun and media, among other things.

Technology changes quickly

Technological progress is a constant process that gives rise to new technologies that make it easier for us to do our day-to-day tasks. In the smart toys business, there have been a number of new ideas that help kids develop and explore their creative minds. For example, Innokind, Inc. (US) won the first World Economic Forum Smart Toy Awards for its Intelino Smart Train, which encourages creative play and helps kids learn how to code through customizable tiles and/or an app. The LEGO Group (Denmark) also won for an augmented reality (AR) tool that lets kids make their own songs using LEGO characters and "BeatBits" with different sound effects. Also, the use of technology in schooling is quickly rising, which is likely to keep the demand for smart toys high in the near future.

Drivers: E-commerce is getting more and more popular

It is expected that the growth of e-commerce companies and the popularity of animated movies will lead to new business growth opportunities. Online shopping has seen a lot of rise in the market for smart toys. Because of the internet retail field, customers can buy a lot of different things. People are also becoming more confident in using online payment options because security options for online payments are getting better.

Restraints: Demand for remote learning is slowing the growth of the market

The growth of schooling is expected to slow the growth of the global market for smart toys. Teaching professionals recommend smart toys, especially for kids who are still growing and learning, and use them to teach.

Major Market Segments Covered 

On the basis of  Type

• Smartphone Connected
• Tablet-Connected

Due to the expansion of edutainment services and high smartphone penetration, the interactive games category had the highest revenue share of over 85.0% in 2020. Playing interactive games is a great way to discover new ways to learn and develop creative knowledge. Players are tasked with solving riddles in a virtual environment by interactive games. These games can be used to help young children comprehend letters and alphabets in preschool. The Lego Group also provides LEGO dimensions, which communicate with players using NFC technology. 

Over the forecast period, the market for educational robots is expected to grow at the fastest CAGR. Toys that are intelligent robots can help kids become more creative, problem-solving, communicative, and team-oriented. The majority of the time, these machines can be controlled remotely or with a

On the basis of Application

• Online Stores
• Specialty Stores
• Convenience Stores

In 2020, the offline channel segment's income share was over 60.0% of the total. The competition among online and offline retailers has grown as a result of the shifting landscape for distribution channels. Customers who choose smart toys expect engaging brand experiences. Hasbro, one of the major participants in the market for smart toys, is collaborating with merchants like Target and Walmart to grow its clientele. To minimize delivery and trucking mileage, the business is also making use of its warehouse in the Midwest of the United States. 

Over the forecast period, the online sector is anticipated to have the fastest CAGR, at 17.0%. Customers have a variety of choices thanks to the e-commerce channel. The pandemic had an impact on the sales of educational toys, and several toy manufacturers were forced to practically relocate their operations.

Regional insights

Geographically, the global Smart AI Toys market has been looked at in different parts of the world, like North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. (MEA).

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North America brought in more than 40.0% of all the money. Smart toys are becoming more popular in the region because more and more smart home devices are being bought. According to a study by Acquity Group, the number of smart goods people buy for their homes is on the rise. In the U.S., 30% of people own smart IoT devices. During the next few years, the market in Asia-Pacific is expected to grow the fastest.

Smart toys are becoming more popular in the APAC area because there are more people in the middle class and more people want educational toys. Due to its wide distribution network and high rate of customer engagement, Lego Group has been seeing steady growth in the area. For example, The LEGO Group is growing in Singapore by spending in the growth of the country's digital industry. The key player has teamed up with Singapore's Economic Development Board to expand the company's reach in East Asia. This growth is due to the fact that there are major market players in APAC who have put a lot of money into 3D printing and AI technology for sensing. 

China is the country that brings in the most money for the Asia-Pacific smart toy market. This region's big growth is mostly due to the rise of digitalization, the success of smart toys, and more money going into research and development. Also, the smart toy market in North America is projected to grow a lot during this forecast period, as more people want to use AI security parameters and update their software. This is because the governments of North American countries have put in place strict safety and improvement standards for smart toys.

Scope Of Report

 Key Vendors

• Dream International Ltd.
• Integrity Toys, Inc.
• JAKKS Pacific Inc.
• Kids II, Inc.
• K'NEX Brands, Inc.
• Konami Corporation
• LeapFrog Enterprises, Inc.
• Mattel, Inc.
• Fisher-Price, Inc.
• Playmates Toys, Inc.
• Sanrio Company Ltd.
• TOMY Company Ltd. and others.

• JAKKS Pacific Inc.

JAKKS Pacific, Inc. (NASDAQ: JAKK), with its offices in Santa Monica, California, is a world leader in designing, making, and selling toys and consumer goods.  JAKKS Pacific’s popular proprietary brands include MorfBoard, TP Blaster, Disguise, Moose Mountain, Maui; a wide range of entertainment-inspired products featuring premier licensed properties from the world's leading licensors, inclusive of The Walt Disney Company, Warner Bros., Nintendo, NBC Universal, and more; and C’est Moi, a new generation of clean beauty.  By giving back to the community through JAKKS Cares, the company is making a good difference in the lives of children. 

• Kids II, Inc.

Kids2 is a global consumer goods business that makes products and whole-family solutions to help new parents and families build bright futures through small successes. The top names for infants, babies, and toddlers, such as Baby EinsteinTM, Bright StartsTM, IngenuityTM, Summer, and SwaddleMe, are all part of the Kids2TM brand portfolio. Kids2 is a global company with its headquarters in Atlanta. It has 15 offices on four continents and serves customers in more than 90 countries. It has been making new baby goods for 50 years. Its CEO, Ryan Gunnigle, runs it like an agile start-up, which helps the company grow and become more successful.

• K'NEX Brands, Inc.

K'NEX Brands, the most innovative construction toy business in the world, was started in 1992 to make and sell what has become one of the best integrated construction systems for kids and the STEM building solution for America. K'NEX is known for Building Worlds Kids Love and has won more than 270 foreign awards and honors. It encourages kids to "imagine, build, and play." K'NEX has building toys for every age and skill level that can be used anywhere, from the living room to the school. The K'NEX family of brands includes K'NEX Building Sets, K'NEX Thrill Rides, K'NEX Education, Lincoln Logs, Tinkertoy, K-FORCE Build and BlastTM, Mighty MakersTM, Mario Kart WiiTM, Mario Kart 7TM, Mario Kart 8TM, Super MarioTM, PacManTM, Titanfall, Family GuyTM, Plants vs. ZombiesTM, and more.

• Konami Corporation

Konami Digital Entertainment is one of the biggest digital entertainment companies in the world. It produces games for consoles like the PlayStation 4, Xbox One, and Nintendo Switch, as well as games for mobile devices. Some of the most famous games made by the company are Metal Gear Solid, Pro Evolution Soccer, Silent Hill, DanceDanceRevolution, and Castlevania. Konami also makes the very famous Yu-Gi-Oh! TRADING CARD GAME, of which more than 25 billion cards have been sold all over the world. They are looking for skilled people who love games and have the above skills and experience. 

•  LeapFrog Enterprises, Inc.

LeapFrog Enterprises, Inc. is a leader in making educational fun for kids and a pioneer in the field of education. LeapFrog's award-winning products are made to help every child reach their full potential. They do this by providing the best-in-class education through engaging platforms, content, and toys that use technology. The Learning Path is a place for parents and extended family to go online that is exclusive to LeapFrog. It gives personalized comments on a child's learning progress and suggests products that will help each child learn better. LeapFrog's products and programs help kids of all ages get ready for life and school through the power of play. LeapFrog's products are sold in more than 45 countries, and more than 100,000 U.S. schools have used them. VTech bought LeapFrog in April 2016, and the company is based in Emeryville, California. 

• Mattel, Inc.

Mattel, Inc. is a company with a goal to make new products and experiences for kids that inspire, entertain, and help them grow through play. They play like their future rests on it, which is true. Play is their language, and they talk in a way that is true to their customers by showing them the world as they see and imagine it. Mattel is one of the world's biggest toy companies and has one of the best collections of children's and family entertainment brands. They engage consumers through their portfolio of iconic brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO, Masters of the Universe, Monster High and MEGA, as well as other popular intellectual properties that they own or license in partnership with global entertainment companies. They  have movies and TV shows, games and other digital activities, music, and live events. They work in more than 35 places, and their goods are sold in more than 150 countries with the help of the biggest retail and online shopping companies in the world.

Industry Development

In November 2017: Hasbro, Inc. and Mattel, Inc. made a deal to build engineering facilities for Barbie robots. This robot has AI technology that gives kids six free lessons in coding to help them learn and grow as people.

In March 2017: Peguino Ltd. merged with Arduino TM Group to make IoT-compatible software for toy bricks with Arduino and Raspberry Pi programs built in. This toy brick has infrared data transfer and microphones, OLED displays, and humidity sensors built in.

Market Segmentation

The Smart AI Toys market research report is broken down by type, applications, and region.

On the basis of  Type

• Smartphone Connected
• Tablet-Connected

On the basis of Application

• Online Stores
• Specialty Stores
• Convenience Stores

On the basis of Age

• 0-3 years
• 3-8 years
• 8-12 years

The global Smart AI Toys market Regional insights

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia-Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America

Conclusion

The study report has a lot of information about new trends, drivers, and restraints that can change how the market works in the industry. It goes into detail about each market area, including the products, how they are used, and who the competitors are. The study estimates the potential of the Smart AI Toys market by looking at growth rates (CAGR%), Volume (Units), and Value ($M) data given at the country level for different product types, applications, and industry verticals. The study report has a lot of information. It talks about how toys are getting smarter quickly, with IoT and AI technology being used by different companies. This, along with more research and development for consumer safety, is likely to bring in more customers. This is likely to make the market grow in the years to come. It is a professional and detailed study that looks at the main and secondary drivers, market share, leading segments, and geographical analysis. The study also looks at key players, important partnerships, mergers and acquisitions, and trends in innovation and business policies.