Smart Toys Market Report 2026

The smart toys market size has grown exponentially in recent years. It will grow from $25.02 billion in 2025 to $30.51 billion in 2026 at a compound annual growth rate (CAGR) of 21.9%. The growth in the historic period can be attributed to growth in digital-native child demographics, increased spending on educational toys, early adoption of connected play devices, expansion of mobile application ecosystems, rising parental focus on learning outcomes.

The smart toys market size is expected to see exponential growth in the next few years. It will grow to $66.9 billion in 2030 at a compound annual growth rate (CAGR) of 21.7%. The growth in the forecast period can be attributed to growing demand for ai-driven personalized play experiences, increasing integration with augmented reality platforms, expansion of smart toys in remote learning, rising focus on data-driven child engagement, continuous innovation in interactive toy design. Major trends in the forecast period include increasing adoption of connected interactive toys, rising demand for educational smart toys, growing integration of voice and gesture recognition, expansion of app-enabled toy ecosystems, enhanced focus on child engagement and learning.

The growing awareness of technology-led education in the smart toys sector is expected to drive the market's growth in the forecast period. Technology-led education involves integrating instructional technology into school learning environments, making learning more engaging and helping children absorb knowledge more effectively. The educational benefits of such toys have encouraged companies to incorporate advanced e-learning technologies, including sophisticated voice recognition features and hardware sensors, making products more intelligent, interactive, and dynamic. E-learning represents a significant innovation within the smart toys industry. For example, in May 2024, the National Center for Education Statistics, a U.S.-based government agency, reported that 87% of public schools offered tutoring during the 2023-24 school year, with 47% providing two or more types. Specifically, 46% offered high-dosage tutoring, 66% standard tutoring, 24% self-paced tutoring, and 13% on-demand online tutoring. Consequently, the rise of technology-led education is supporting the growth of the smart toys market.

Key players in the smart toys market are focusing on developing technologically advanced products, including artificial intelligence companions, to expand their customer base, drive more sales, and increase revenue. Artificial intelligence companions, which are virtual or digital entities utilizing artificial intelligence, engage and assist users in various tasks and interactions. For example, Toymint, a Canada-based provider of toys, introduced TeddyGPT in April 2023. TeddyGPT is an AI teddy chat that offers an interactive, engaging, and educational experience for children and families. Developed by OpenAI, TeddyGPT combines the charm of a traditional teddy bear with advanced AI features, fostering interactive experiences that encourage communication, companionship, and learning beyond the capabilities of ordinary toys.

In January 2024, Smart Toys and Games, a US-based manufacturer of educational and interactive toys designed to promote learning through play, acquired Jigsaw Puzzles for an undisclosed amount. Through this acquisition, Smart Toys and Games aims to expand its product portfolio, strengthen its market presence in the UK, and utilize local manufacturing capabilities to improve efficiency and drive innovation. Jigsaw Puzzles, an England-based company, specializes in producing a wide range of high-quality jigsaw puzzles for puzzle enthusiasts.

Major companies operating in the smart toys market are The Lego Group, Mattel Inc., Hasbro Inc., WowWee Group Limited, Anki Inc., Sphero Inc., LittleBits Electronics Inc., UBTECH Robotics Inc., Ozobot Inc., Miko Emotix, Fisher-Price Inc., LeapFrog Enterprises Inc., Tomy Company Ltd., DJI Technology Co. Ltd., Wonder Workshop Inc., Innovation First International Inc., Yuneec International Co. Ltd., Spin Master Corp., Bluebee Pals, CogniToys, Tinkerbots Games Ltd., Modular Robotics, Pai Technology Ltd., Makeblock.

North America was the largest region in the smart toys market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart toys market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart toys market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart toys market consists of sales of intelligent toys, connected toys, gaming toys, construction toys, and creative toys.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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