Transparency Market Research (TMR) reports that the global smart toys market is heavily dependent on product innovation, and that an increasing number of players are venturing into the competitive landscape.
Based on toy-type, the global smart toys market gains maximum demand for voice or image recognition toys, accounting for $2,271.7 million in 2017 and projected for a compound annual growth rate (CAGR) of 3.7 percent during the forecast period of 2017 to 2022. This segment is growing at $89.7 million annually over the course of the forecast period, and this absolute growth is larger than the any other segment.
The demand in the smart toys market, a sector born out of industrial and technological convergence, is projected for an impressive CAGR during the forecast period of 2017 to 2022. However, the market for smart toys is still at its early stage, with Sphero BB-8 App-Enabled Droid being the only one that has achieved broad consumer appeal in the toys to life segment, according to TMR. The demand in the global smart toys market will escalate when newer products will make an impression on a wider population.
Smart toys include app-enabled mechanical toys, screenless toys, toys-to-life, puzzles and building games, health tracking toys, wearables, and others. North America is identified as the most lucrative regional market for these toys, promising a revenue worth $2,119.2 million by 2022, according to TMR.
Smart toys goes beyond just being educational toys, as they can recognize speech as well as react to their surroundings in order to provide a comprehensive entertainment and engagement to children between the age group of five to 14. The growth of the global smart toys market is also a reflection of increasing awareness towards the smart toys and the availability of diverse indoor and outdoor sports and educational toys. On the other hand, high cost of these products, the lack of awareness among large masses, particularly in the emerging economies, regulatory issues for overseas distribution, and impending innovations are some of the challenges that are hindering the prosperity of the global smart toys market, says TMR.
According to TMR, a few companies do hold a respectable position in the global smart toys market, such as Activision Blizzard Inc., Fisher-Price Inc., The LEGO Group, Hasbro Inc., LeapFrog Enterprises, Inc., Spin Master Corp, WowWee Group Ltd., and more.