Smart AI Toys Market: Current Analysis and Forecast (2024-2032)

Report Description

Smart AI Toys Market Size & Forecast

The Smart AI Toys market was valued at approximately USD 18 Billion in 2023 and is expected to grow at a substantial CAGR of around 26% during the forecast period (2024-2032) owing to the surge in demand for learning enhancement and expansion of IoT capabilities.

Smart AI Toys Market Analysis

Smart AI Toys are interactive playthings that utilize artificial intelligence (AI) technologies to enhance user experience through learning, adaptation, and interaction. These toys are designed to be more engaging and educational than traditional toys, often incorporating features such as voice recognition, machine learning, and connectivity to other devices or the internet. These toys are designed to entertain, educate, and sometimes even act as companions for children, providing personalized experiences that evolve.

The increasing disposable income allows more parents to invest in high-tech educational toys for their children, driving market demand. According to the International Energy Outlook 2023, around USD 10,136 in 2022 and USD 10,677 in 2025 account for world disposable income. There is a growing emphasis on Science, Technology, Engineering, and Mathematics (STEM) education, which supports the adoption of smart AI toys that can engage children in these fields. Moreover, companies are partnering with AI technology firms to integrate advanced algorithms into real-time toy learning interactions. On July 20, 2022, Mattel, Inc. announced that it has entered into a multi-year agreement with SpaceX to create and market products that inspire children and collectors alike to tap into their inner space explorer. In 2023, Mattel will begin releasing SpaceX-inspired toys under its iconic Matchbox brand.

Smart AI Toys Market Trends

This section discusses the key market trends influencing the various segments of the Smart AI Toys market as identified by our research experts.

Interactive Games Smart AI Toys Transforming Industry

Interactive games held a dominant share of the market in 2023. This is mainly due to smart toys enhancing user engagement and providing a more personalized experience. Moreover, the appeal of interactive games extends beyond mere entertainment, and they also contribute to the learning process by introducing educational content in engaging formats. For instance, on June 22, 2023, Hasbro, Inc., a global leader in play, announced that the next era of the cute, cool, and weird Furby interactive toy hit shelves just in time for summer. This Furby features over 600 responses, including phrases, songs, lights, and more. Moreover, these advancements open up new possibilities for innovative gameplay and functionality, attracting both consumers and developers to invest in the market.

North America leads the market in 2023

North America is a significant driver of the Smart AI Toys market. The region boasts a robust consumer base with a strong inclination towards technology-driven products, making it fertile ground for innovation in the toy industry. Moreover, North America is home to many tech giants and startups specializing in AI and robotics, contributing to developing cutting-edge Smart AI Toys. On September 26, 2023, Mattel, Inc., a United States-based company, announced a new version of Pictionary, the original quickdraw game with Pictionary Vs. AI is the first-ever board game to integrate AI technology into its classic gameplay. In this version, all players draw, and the AI guesses, taking the drawing game that fans know and love to new heights. The widespread availability of high-speed internet and the tech-savvy nature of the workforce facilitate seamless execution and participation in Smart AI Toys. As per the World Bank, in 2021, around 92% of North America’s population uses the internet. According to the Federal Communications Commission benchmarks, more than 97% of American’s people had access to high-speed internet in 2021.

Smart AI Toys Industry Overview

The Smart AI Toys market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Mattel, UBTECH ROBOTICS CORP LTD., VTech Holdings Limited., ROYBI Robot, Twin Science, Vanguard Industries Inc. (Moflin), Sphero, Inc., WowWee Group Limited, Wonder Workshop, Inc, Blue Frog Robotics.

Smart AI Toys Market News

On September 20, 2023, UBTECH Robotics announced a strategic partnership with the University of Hong Kong to embark on collaborative research focused on human-like visual perception algorithms and technology for service robots. The research involves the exploration of 3D point cloud data processing and analysis.

On September 12, 2023, VTech, a pioneer in innovative parenting technology, launched a product, the V-Care VC2105 Smart Nursery Baby Monitor, which harnesses unique local AI capabilities providing baby sleep analytics and real-time alerts to help deliver the best monitor on the market.

On August 8, 2023, VTech announced the availability of the new Go! Go! Smart Wheels playsets offer exciting track and vehicle play designed just for toddlers and preschoolers. The new Go! Go! Smart Wheels toys rev up first words and motor skills with innovative SmartPoint technology that drives development and imagination.

On June 22, 2023, Hasbro, Inc., a global leader in play, announced that the next era of the cute, cool, and weird Furby interactive toy hit shelves just in time for summer. This Furby features over 600 responses, including phrases, songs, lights, and more.

On January 4, 2023, WowWee, a China based company, launched Dog-E at CES (Consumer Electronics Show), a global innovator of robotic toys and consumer entertainment products. Dog-E is a groundbreaking robot dog unique to every owner due to over a million combinations of colorful lights, sounds, and personality traits.

Smart AI Toys Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global Smart AI Toys market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Smart AI Toys Market Analysis (2022-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global Smart AI Toys market were the three major steps undertaken to create and analyze the adoption of Smart AI Toys in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Smart AI Toys market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Smart AI Toys market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Smart AI Toys market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as product, distribution channel, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the smart AI toys market. Further, we conducted factor analysis using dependent and independent variables such as product, distribution channel, and regions of the Smart AI Toys market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Smart AI Toys market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Smart AI Toys market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the Smart AI Toys market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global Smart AI Toys market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Smart AI Toys market. Data was split into several segments and sub-segments after studying various parameters and trends in the product, distribution channel, and regions of the global Smart AI Toys market.

The main objective of the Global Smart AI Toys Market Study

The current & future market trends of the global Smart AI Toys market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Smart AI Toys market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of the product, distribution channel, and regions.
• Define and analysis of the regulatory framework for the Smart AI Toys
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the Smart AI Toys market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the Smart AI Toys market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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