Global Smart Toys Market: Snapshot
During the forecast period of 2017 to 2022, the demand in the global smart toys market is expected to increment at a considerable CAGR, gaining traction from a number of factors such as advancements in artificial intelligence (AI) and the Internet of Things (IoT), changing lifestyle of urban population who have increased their disposable income but losing on time for parenting, and growing awareness regarding the benefits offered by these modern toys, both outdoor and indoor. Though the high cost of these products continues to challenge the prosperity of the global smart toys market, the vendors of this market are depending on innovation to expand their horizons.
Voice and Image Recognition Toys Most Profitable Product Segment
Based on the type of toy, the global smart toys market has been segmented into app-enabled mechanical toys, screenless toys, voice or image recognition toys, toys-to-life, health-tracking toys or wearables, puzzles and building games, and others. In 2017, voice of image recognition toys served 31.1% of the overall demand, which was valued at US$2,271.7 mn. The demand for this segment has been projected to experience a CAGR of 3.7% during the forecast period of 2017 to 2022, reaching a global worth of US$2,720.4 mn by 2022. The voice or image recognition smart toys segment is growing at US$89.7 mn annually over the course of the forecast period, and this absolute growth is larger than any other segment.
Based on interfacing device, the market for smart toys has been bifurcated into smartphones, tablets, consoles, and drones, whereas on the basis of wireless communications technology, the market has been categorized into Wi-Fi, Bluetooth, RFID or NFC, and others.
North America Most Lucrative Region, Though APEJ Projected for Best CAGR
Geographically, the report evaluates the potential of smart toys market in North America, Europe, Latin America, Asia Pacific except Japan (APEJ), the Middle East and Africa (MEA), and Japan. In 2017, North America smart toys market was worth US$1,802.0 mn in 2017, and expanding at a CAGR of 3.3% during the forecast period of 2017 to 2022, the valuation is estimated to reach US$2,119.2 mn by 2022. High adoptability rate of new technology and substantial buying ability of the citizens of developed countries such as the U.S. and Canada are two primary factors aiding to the North America soft toys market.
On the other hand, Europe constituted 23.9% of the overall demand in 2017, the second most prominent chunk of regional demand in the global smart toys market. However, Asia Pacific except Japan is projected to experience an above-average CAGR of 3.9%, the best among all regions. APEJ makes for a vastly population region, which includes a high percentage of children between the age of five to 14. In countries such as India and China, disposable income is increasing among the urban populations and the pool of prospected customers is escalating. The overall revenue in the APEJ smart toys market is estimated to reach a net worth of US$1,619.6 mn by 2022. Japan smart toys market is expected to create absolute dollar opportunities of US$56.1 mn between 2017 and 2022.
Competitors Engaged in R&D to Develop Niche Products
Fisher-Price Inc., Activision Blizzard Inc., The Hasbro Inc., Genesis Toy Co. Ltd, Spin Master Corp, Seebo Interactive Ltd, LeapFrog Enterprises, Inc., Wow Wee Group Ltd, Reach Robotics Ltd, and SmartGurlz ApS are some of the key companies currently holding a prominent position in the global smart toys market. Most of these players are investing heavily on research and development activities, as new and niche products helps them garner more sales. Though the market is currently in nascent stage, advancements in the field of IoT and AI are expected to open up endless potential for content in this market.