Smart Toys Market - Snapshot
The global smart toys market is projected to be driven by rise in demand for internet of toys and increasing technology friendly users.The toy industry has adopted high tech advances which helps in the development of kids with the help of educative learning methods through smart toys. Internet of toys refers to a future where toys not only relate to children but are wirelessly connected to each other. Existing toy companies and start-ups are eagerly innovating in this area, as this could become the largest market for them with increasing number of customers. This could also help in the development of science, technology, engineering and mathematics (STEM) skills of students. Hence, internet of toys drives the smart toys market.
Additionally, technological advancement in toys is happening across industries, and the benefits are revolutionary for companies with greater consumer attraction. However, consumers are concerned about data security breaches and non-transparent terms & conditions, which they have to accept in order to access or unlock complete features of the game. These act as restraints for the growth of the smart toys market. The global smart toys market is anticipated to reach US$ 69,932.5 million by 2026 at a CAGR of 36.4% during the forecast period.
Growth in the smart toys market is coupled with quick delivery of toys and making the product available in both online and physical platforms, to gain competitive advantage. This can be made possible through efficient supply chain management systems. Moreover, increase in the number of internet users along with rise in popularity of smartphones and tablets has contributed to the surge in awareness about smart toys.
The online sales channel has become the most popular among consumers across all regions, which is due to the discounted prices and offers that are mostly available online unlike physical stores which offer discounts usuallyin festive seasons or on special occasions. Also, it has been observed that customers find it more convenient to research about a product online, before making a purchase.
Several strategies and approaches have been established to increase the revenue of smart toys over the years, with technological alliances considered to be one of the most promising strategy. Alliances and collaborations are beneficial for both the parties i.e. the technology providers as well as leading players in the toy industry. However, concerns related to data security are on the rise as there are many examples regarding data privacy, security breaches, and a few cases of data breach. Hence, in order to deal with these issues, toy industry players may opt for alliances with tech giants to come up with technologically advanced and secured smart toys. For instance, as Apple, Inc. is well known for its uncheckable servers and significant technological advancements, toy manufacturers form alliances/ integration with Apple or any other tech firm.
Vertical Integration is one of the key business opportunities in the smart toys market. Since toy manufacturers are highly dependent on retailers for the distribution of their products, even a single hiccup could turn the table. A major incident is the bankruptcy of Toys R Us (a U.S. based retailer), which impacted the profits of all the major players in the market. Vertical integration is a great opportunity for the smart toys market. For instance, GP TOYS, a Hong Kong based toy company marks itself out from its larger rivals Mattel, Hasbro, and Lego as it is vertically integrated. According to the management, the key reason for its success is the importance of not only designing and distributing its own toys, but owning its production facilities and shops, which means that the company is involved in every stage of the process and hence is accountable for all the profits.
The global smart toys market has been segmented based on toy type, interfacing device, technology, distribution channel, and age group. The toy type segment has been classified into app- enabled mechanical toys, voice/ image recognition toys, screen less toys, toys-to-life, puzzles, and building games, and health tracking toys/ wearable. The interfacing device segment is categorized into smartphone-connected toys, tablet-connected toys, console-connected toys, and app-connected drones. In terms of technology, the market has been divided into Wi-Fi, Bluetooth, and RFID/ NFC. Based on distribution channel, the market has been bifurcated into online market, specialty stores, and toy shops. The market in terms of age group is segmented as 2-5 years, 6-8 years, 8-12 years, teenagers, and adults. The report provides in-depth segment analysis of the global smart toys market, thereby providing valuable insights at the macro as well as micro levels.
In terms of region, North America is projected to lead the global smart toys market during the forecast period. High technology oriented toys also requires active and flexible IT support, which is available in majority of the companies in the region. North America dominates the global smart toys market primarily due to increase in adoption of technology and high disposable income of the citizens. The market in Europe is also expected to witness strong growth during the forecast period. The smart toys market in Asia Pacific is anticipated to grow at a rapid pace due to increasing technological advancements and rising use of Internet.The markets in Middle East & Africa and South America are expected to witness sluggish growth as compared to North America and Europe, during the forecast period.
The global smart toys market is largely driven by product development and product line enhancements. For instance, Lego came up with Lego Dimensions in 2015, a Lego-themed action-adventure video game, which was a product line enhancement by the group.Key players profiled in the report include Hasbro Inc., Sony Corporation, Jakks Pacific Inc., Mattel Inc., The Lego Group, Playmobil, Kid II, Inc., KNex Industries Inc., Konami Corporation, and Leapfrog Entertainment.
Smart Toys Market: Overview
This report on the smart toys market by Transparency Market Research analyzes and forecasts the data of the market on the basis of primary and secondary research, at the global and regional levels. The report provides an analysis of the industry trends in each of the segments from 2016 to 2026, wherein 2018 to 2026 is the forecast period and 2017 is the base year. The global smart toys market report provides an in-depth and accurate analysis of market revenue across all the segments covered in the scope. It also highlights various drivers, restraints, and opportunities expected to influence market growth during the forecast period. The study provides a complete perspective about the smart toys market and expansion throughout the research study in terms of value (US$ Mn) across North America, Asia Pacific, South America, Middle East & Africa, and Europe. Moreover,the study explains the penetration of each market segment within various regions and how these segments have accelerated the growth of the market.
The overview section of the report analyzes market dynamics such as drivers, restraints, and opportunities that influence the current nature and future status of this market, key indicators, integration challenges, end-user adoption analysis, and trendsof the market. A market attractiveness analysis for every segment has been included in the report to provide a thorough understanding of the overall scenario in the smart toys market. The report also provides an overview of various strategies adopted by key players in the market.
Global Smart Toys Market: Scope of the Report
In terms of solutions, the report segments the market into toy type, interfacing device, technology, distribution channel, age group and geography. The toy type segment has been classified into app- enabled mechanical toys, voice/image recognition toys, screen less toys, toys-to-life, puzzles, and building games, and health tracking toys/ wearable. The interfacing device segment is categorized into smartphone-connected toys, tablet-connected toys, console-connected toys, and app-connected drones. Based on technology, the market is divided into Wi-Fi, Bluetooth, and RFID/ NFC. In terms of distribution channel, the market has been bifurcated into online market, specialty stores, and toy shops. The age group segment is divided into 2-5 years, 6-8 years, 8-12 years, teenagers, and adults. The report provides in-depth segment analysis of the global smart toys market, thereby providing valuable insights at the macro as well as micro levels.
The report also highlights the competitive landscape of the market, positioning all the major players according to their presence in different regions of the world and key developments initiated by them in the global smart toys market. The comprehensive market estimates are a result of in-depth secondary research, primary interviews, and in-house expert panel reviews. These market estimates have been analyzed taking into account the impact of different political, social, economic, and technological factors along with the current market dynamics affecting the global smart toys market expansion.
This report provides all the essential information required to understand the key developments in the global smart toys market and expansion trends of each segment and region. It also includes strategies, financial information, and SWOT analysis under the company profiles section. Additionally, the report provides insights related to trends and their impact on the regional market. Moreover, Porter’s Five Forces analysis provides analysis of bargaining power of buyers, bargaining power of suppliers, threat of new entrants, threat of substitutes, and degree of competition in the global smart toys market. This study provides a comprehensive ecosystem analysis of the global smart toys market, explaining the various participants including technology partners, raw material providers, and distribution channels of the value chain operating in the market.
Global Smart Toys Market: Research Methodology
The research methodology is a combination of primary research, secondary research, and expert panel reviews. Secondary research sources such as annual reports, company websites, broker reports, financial reports, SEC filings and investor presentations, national government documents, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, statistical databases, World Bank database, and industry white papers are usuallyreferred.
Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews on the global smart toys market, across regions. Primary interviews are conducted on an ongoing basiswith industry expertsand participants in order to get the latest market insights and validate the existing data and analysis. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.
Global Smart Toys Market: Competitive Dynamics
The research study includes profiles of leading companies operating in the global smart toys market. Key players profiled in the report include Hasbro Inc., Sony Corporation, Jakks Pacific Inc., Mattel Inc., The Lego Group, Playmobil, Kid II Inc., KNex Industries Inc., Konami Corporation, and Leapfrog Entertainment.
The global smart toys market is segmented as below:
Global Smart Toys Market, by Toy Type
- App- Enabled Mechanical Toys
- Voice/Image Recognition Toys
- Screenless Toys
- Puzzles and Building Games
- Health Tracking Toys/ Wearable
Global Smart Toys Market, by Interfacing Device
- Smartphone-Connected Toys
- Tablet-Connected Toys
- Console-Connected Toys
- App-Connected Drones
Global Smart Toys Market, byTechnology
- RFID/ NFC
Global Smart Toys Market, by Distribution Channel
- Online Market
- Specialty Stores
- Toy Shops
- Cloud Based
- On Premise
Global Smart Toys Market, by Age Group
- 2-5 years
- 6-8 years
- 8-12 years
Global Smart Toys Market, by Geography
- North America
- Rest of North America
- Rest of Europe
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America