The growth, says the firm, is attributed to the increased awareness of technology-led education in children starting at an early age to improve physical, mental, and intellectual skills. Smart toy products are expected to emerge as one of the prominent categories of the Internet of Things (IoT) that leverage speech recognition and cloud computing to improve the learning ability.
The rising concern about kids spending more time on digital devices is expected to promote the utility of smart toys as an alternative in the coming years. In addition, says the firm, the emergence of new smart toys with AI-enabled features will assist in strengthening the creative mind, particularly in pre-schoolers.
Over the past few years, the education value associated with such toys has spurred key industry participants to introduce variants with more advanced voice recognition features and hardware sensors that make the product more intelligent, interactive, and dynamic.
The report is broken down by type of user: Toddlers, pre-schoolers, school-going, and stripling. The toddlers segment is expected to be the fastest growing segment with a CAGR of more than 16.3% from 2017 to 2025. The rising influence of digital education among kids is expected to have a positive impact on the market in the coming years, and such games help toddlers to adopt digital learning from an early age.
In terms of geographic region, the Asia Pacific market is expected to witness the fastest growth with at a CAGR of more than 18.2% from 2017 to 2025. Over the coming years, vendors are expected to focus on low penetrated countries, especially in the Asia Pacific region, with countries such as India and China presenting a considerable growth prospect for the market. Companies are expected to focus on expanding their reach through online platforms, which will also help in increasing their visibility.
Key manufacturers listed in the report include Dream International, Jakks Pacific, Hasbro, Makeblock Co., The Lego Group, Mattel, KNEX