Connected Toys Market Globally Projected to Top USD 51.8 Billion by 2034

Connected Toys Market Grows Rapidly Across the Globe

The connected toys market is experiencing a surge in growth, with various regions embracing IoT-enabled toys at an impressive pace.

In the Asia Pacific, countries such as China, Japan, and South Korea are leading the charge, making strides in adopting IoT-enabled toys, positioning themselves at the forefront of this burgeoning industry.

North America continues to dominate the market, holding a significant 38.4% share and generating USD 3.3 Billion in revenue by 2024.

Meanwhile, the Middle East and Africa are witnessing a gradual adoption of connected toys. Government-led initiatives in digital education are playing a crucial role in accelerating growth, particularly in urban areas.

Latin America is also showing promising growth, with countries like Brazil and Mexico making notable strides in the connected toys market.

Europe is witnessing steady growth, driven by investments in interactive learning tools and a strong focus on child data protection.

The connected toys market is expected to reach an impressive USD 51.8 Billion by 2034, reflecting its rapid expansion.

In the realm of innovation, companies such as VirtuWorlds, Aghanim, and EMR Dynamics are making waves. VirtuWorlds, a German firm, is focusing on VR, AR, and mixed reality applications, while Aghanim offers advanced tools for game commerce. EMR Dynamics, a start-up, is integrating digital architectures for supply chains and developing an advanced real-time WLAN system to enhance connectivity in gaming contexts.

Notable developments in the market include Mattel's partnership with OpenAI to launch AI-powered toys integrating advanced generative AI with interactive play in June 2025. Steelbird Baby Toys also invested ₹10 crore to expand its infant toy range, strengthening its position in India's rapidly growing baby care market in July 2025.

Industry experts like Tajammul Pangarkar, CMO at Prudour Pvt Ltd, are making significant contributions to the field, frequently publishing articles in industry-specific magazines and forums, focusing on tech trends, mobile applications, and raising general awareness of technical know-how.

Recent acquisitions, such as Alliance Entertainment's purchase of Handmade by Robots in December 2024, are boosting market presence in the growing collectibles sector.

As the connected toys market continues to evolve, it's clear that innovation, investment, and strategic partnerships will play key roles in shaping its future.