Smart toys are the internet connected gadgets that have their own intelligence and are enabled by the electronics within them that allows them to learn, adapt and act according to a particular environment. These toys are connected to the internet and a smart device that are available for children who are three years old or more.
The Internet is an attractive option for everyone and therefore increasing demand for Internet-connected devices is contributing towards extensive growth smart toys market worldwide as these toys are extremely helpful for both parents and the children. Some of these toys work as an assistant that can wake up the child in the morning, remind them of assignments, answer their questions and get them to bed by time. Parents can analyze the activity of their children through an online dashboard as well. Furthermore, these factors are thereby driving the growth of the global smart toys market at a rapid pace.
Insight by Technology
On the basis of technology, smart toys market is segmented into Bluetooth, wi-fi, RFID and NFC. Among all these segments, RFID technology is anticipated to witness the fastest growth during the forecast period. The growth of this segment is attributed towards extensive adoption of RFID for tracking and tagging of products and also contains a memory chip and antenna to store data. Furthermore, package and inventory tracking are the two most crucial benefits of RFID that is further enhancing the growth of the smart toys market across the globe.
Insight by Type
The smart toys market is also segmented on the basis of type into app-enabled mechanical toys, health-tracking toys or wearable, voice or image recognition toys, screenless toys, puzzles and building games, toys-to-life, and others. Among all these segments, voice or image recognition toys are expected to witness the fastest growth during the forecast period due to the rapid adoption of artificial intelligence in several developed as well as developing economies.
Insight by Distribution Channel
Based upon distribution channel, the smart toys market is segmented into offline stores, toy shops, specialty stores, online stores, and others. Among all these segments toy shop segment contributed the largest revenue in 2017 and online stores are anticipated to witness fastest growth during the forecast period. Increasing awareness pertaining to online stores and extensive demand and sale of products on online platforms are further bolstering the growth of the smart toys market across the globe.
Increasing upgradation in technology, adoption of smart devices along with the explosion of smartphones is the key trend observed in the growth of the smart toys market. All the major players in the toys industry have started utilizing their resources towards research and development activities and manufacture smart toys. Moreover, hotels, restaurants and coaching centers have started utilizing smart toys in order to attract the customers and enhance their market base. Furthermore, it has been observed that the working mothers have started relying on these toys as it helps them to effectively manage their children and attain reasonable satisfaction thereby bolstering the growth of smart toys market across the globe.
The increasing awareness of internet and technology and the increasing disposable income of rational population in both developed as well as developing economies are the key factors driving the growth of the smart toys market. The ability to operate and understand the latest technology is building confidence amongst the customers towards the smart devices. Every smart device is attracting customers to try something new. Moreover, evolving attitude of people is another factor pertaining towards the growth of the smart toys market at an accelerating rate.
The want of the people to provide their children with the latest gadgets is another important factor driving the growth of the smart toy market. Moreover, with the increasing disposable income of the rational population people are looking forward to spend their money for the betterment of their children. As a result, the number of people interested in buying such gadgets is increasing immensely.
The high costs of research and development and lack of acceptance of such technology are major factors hampering the growth of the global smart toys market. Furthermore, protection of the privacy of the consumer is the most challenging factor since toys with artificial intelligence involve risk of losing private or confidential records to the hackers.
Globally industry players are leveraging market growth through the development of innovative solutions in smart toys. The vendors of smart toys are providing various solutions to users such as artificial assistance, source of knowledge, entertainment and are further improving productivity with the help of artificial intelligence.
Geographically, North America is the largest smart toys market as the region is observing rampant adoption for artificial services by households in the U.S. that have significantly contributed towards the revenue growth of this market. The adoption of mobile devices by citizens of the U.S. is thus amplifying the continuous display of information to the users. For instance, it has been estimated that approximately 80% of the adults in this region have started to rely on such toys with artificial intelligence.
Moreover, extensive utilization of artificial intelligence in the corporate sector is another factor pertaining towards the growth of the smart toys market in North America. Smart toys play a significant role as an assistant to kids helping them in their day-to-day schedule and studies. Furthermore, these toys help the parents to analyze the productivity of their children and are reliable for working mothers.
Furthermore, Asia-Pacific is anticipated to grow at the fastest rate in smart toys market during the forecast period. The increasing popularity of artificial intelligence among the large population in the country such as Japan is enabling the country to extensively invest towards these smart toys. Moreover, the country has amended several norms in order to secure the privacy of the customers utilizing this technology.
Key players in the smart toys market are investing heavily in order to improve the quality of the product and developing the latest technologies which are strengthening their position in the market. Moreover, it has been observed that local players are depending upon new technology to develop cost efficiencies in their business operations thus increasing the rivalry in the market to some extent. Some major players in the smart toys market include Sanrio Company Ltd., Konami Corporation, Fisher Playmates Toys, TOMY Company Ltd., Dream International Ltd., Kids II Sanrio Company Ltd., JAKKS Pacific Inc., Integrity Toys, Inc., Mattel, Inc. and Leap-Frog Enterprises Inc.