Interactive toys, which can sense and play with children, are entering the market and are poised to see major growth. While there are numerous markets that will be lucrative for interactive toys, China, the US, the UK and Germany are expected to be among the most enthusiastic adopters. From these markets we can see a pattern of what drives sales of interactive toys, namely high incomes, STEM interest and small hyper-connected households.
The Interactive Toys: What Drives Growth? global briefing offers a comprehensive guide to the Toys and Games market at an international level. It looks at both global and regional level performances as well as providing category and channel analysis. It identifies the leading companies and offers strategic analysis of key factors influencing the industry, new product developments as well as future trends and prospects.
Product coverage: Traditional Toys and Games, Video Games.
Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.
Why buy this report?
- Get a detailed picture of the Toys and Games market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
- What are interactive and STEM toys?
- Key findings
2. Key Factors in the Growth of Interactive Toys
- Toys-to-life and the demand for an interactive playtime
- Interactive toys expected to see high growth
- The UK, the US, Germany and China leading interactive markets
- Key factors stimulating growth in interactive toys
3. High -income households the core Interactive Toys Market
- Higher disposable incomes lead to higher spend on electronic toys
4. High-income Households the Core Interactive Toys Market
- Growth in the upper-incomes can translate to interactive toy sales
- The UK, the US and Germany will see higher-priced products
- China an entry-level market for interactive toys
5. Stem Interest Builds Demand for Interactive Toys
- Core markets for interactive toys lead STEM adoption
- Engineering and mathematics the primary purchase areas
- Computer science increasingly important to core markets
- STEM toy makers embrace interactivity to strengthen their growth
6. Smaller Technology-driven Households Demand Interactivity
- Fewer children per household leads to more single-child homes
- Interactive toys benefits from high tablet and smartphone adoption
- AR/VR adoption could cause a further shift to interactive toys
7. Fertile Markets for Interactive Toys through to 2030
- More markets will have upper-income potential through to 2030
- More countries will see major declines in children per household
- Table 1 d smartphone possession to rise in developing markets
- Potential markets for growth in STEM-based interactive toys
8. Report Definitions
- Data parameters and report definitions
China, the US, the UK and Germany reveal the key factors that lead to growth in interactive toys
Interactive toys is expected to be a major area of growth for traditional toys and games, with China, the UK, Germany and the US leading global sales. While there are numerous similarities in these markets, it is their growing upper-income group, high parental interest in STEM, and an increase in small tech-savvy households that is driving the adoption of interactive toys.
A large and growing upper-income group is a necessary base for the growth of high-priced interactive toys
Interactive toys, due to the numerous sensors and internal AI-driven computers that need to go into them to give them interactive functionality, are inherently priced very high compared with other toys. Markets need both a robust and increasing base of high-income households to make interactive toys viable.
Parental interest in STEM a driving force behind the adoption of interactive toys
Interest in STEM, in particular the technological portion of STEM, is key in the growth of interactive toys. Numerous new interactive toys allow for some amount of coding, which is critical for core interactive toy markets, where parents believe coding is one of the best paths to a successful career for their children.
Small technology-oriented households lead the demand for interactive toys
Within the core interactive toys markets the number of children per household is typically small or in decline, while the adoption of new technology is high. This means there are increasing numbers of single-child households with tech-savvy children in need of a playmate, making interactive toys more attractive.
New countries have the potential to be prime markets for interactive toys through to 2030
The factors of high incomes, STEM interest and shrinking households, which will grow sales of interactive toys in the US, the UK, Germany and China, hold implications for other markets in the future. Markets such as India and Mexico could become prime targets for interactive toys through to 2030.