Basically, smart toys are intelligent toys that can take informed decisions. Underpinned by the Internet of Things (IoT), they are equipped with sensors and connected to the internet or cloud. Such connected toys are fast replacing the traditional toys in the market. And, with the proliferation of products, the global smart toys market is poised to explode in the next couple of years.
A Transparency Market Research report on the global smart toys market finds that it would rise at a phenomenal 36.4% CAGR over the course of the forecast period from 2018 to 2026.
Many things are propelling the global smart toys market at such a breakneck pace. Below we list those, along with the deterrents, molding its trajectory:
- Rising awareness about the uses of smart toys, particularly when it comes to educating children is at the forefront of driving the market. The interactive toys can process information to fine-tune infotainment for children in all age groups.
- The global smart toys market is receiving a major fillip from the changing lifestyles and higher disposable incomes of people too. These days, with both parents stepping out for work daily, the average household income has risen. This, coupled with their limited time has driven up sales in the market. With proliferation of ecommerce platforms, sales are receiving further boost too.
- The global smart toys market is also receiving a major fillip from the continued product innovation. As players in this market expend money on product development, there are new product launches every now and then. Both well-entrenched existing toy companies and startups are expending money on product development these days. This has led to an array of smart toys inundating the market.
- The hi-tech toys, however, come with a price. This is because those can monitor, track, and record children’s behavior. They are exposed to the same risk as any other gadget supported by the Internet of Things (IoT). In fact, in recent years, a handful of toymakers have come under fire for making smart devices for children that can cause major data breaches. They are a massive threat to privacy. Take for instance a company called VTech Electronics. Recently, it had to cough up US$650, 000 for violating Children’s Online Privacy Protection Act (COPPA). This is because it failed to take concrete steps to secure data.
- Such challenges, however, may not majorly hamper the phenomenal growth pace of the global soft toys market. This is because of players coming up with more secure versions underpinned by better technologies.
- With respect to geography, the global smart toys market is currently being led by Europe and North America. This is because of the presence of many key players in the region. Some of the prominent names in North America, for example, are Neurala, Anki, CleverPet, EmoSHAPE, Sproutel, and others. Most of them are headquartered in the U.S. This, combined with the high spending capacity of people in the region has majorly stoked the market. Europe also is home to a good number of smart toys manufacturers providing its market major impetus.
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