Europe Smart Toys Market Size, Share, and Growth Forecast for 2024 - 2031

Europe Smart Toys Market Size and Share Analysis

The Europe smart toys market is estimated to increase from US$ 13.5 Bn in 2024 to US$ 30.8 Bn by 2031. The market is projected to record a CAGR of 12.4% during the forecast period from 2024 to 2031.

Toys that combine teaching and enjoyment are becoming immensely popular among parents who understand the key role that early childhood development plays. Smart toys that include state-of-the-art technology offer engaging and instructive experiences that complement the goals of contemporary parents for their kids.

The need for toys that foster abilities like problem-solving and critical thinking is rising as the educational landscape changes. Children enjoy learning due to the immersive characteristics of smart toys, such as Augmented Reality (AR) and interactive storytelling, which create an engaging play experience.

LEGO Hidden Side, for instance, is a unique AR-enabled toy that allows kids to develop physical LEGO sets and then bring them to life through a companion app. The app smoothly blends the real and virtual worlds by superimposing digital ghosts and missions onto the physical model. The U.K. and Germany are among the leading markets in Europe where this product is offered.

 Key Highlights of the Market

• Based on product type, the interactive toys segment will likely generate a share of 36% in 2024 backed by rising usage of smartphones in Europe.
• Educational toys are projected to remain in the second position by accounting for a share of 29.5% in 2024 owing to emphasis on early childhood development.
• By end user, the stripling segment is anticipated to lead by holding a share of 63% in 2024 due to increasing need to develop their cognitive abilities.
• Parents are boosting demand for smart toys that offer customized play experiences tailored to individual child interests and developmental needs?.
• Families are allocating more budget toward toys that promote learning and development, reflecting a shift in consumer priorities.
• Use of AR in toys is becoming more prevalent, allowing for immersive play that combines physical and digital elements.
• Developing eco-friendly smart toys presents a unique opportunity, as consumers increasingly prioritize sustainable products?.

Market Attributes	Key Insights
Europe Smart Toys Market Size (2024E)	US$ 13.5 Bn
Projected Market Value (2031F)	US$ 30.8 Bn
Europe Market Growth Rate (CAGR 2024 to 2031)	12.4%
Historical Market Growth Rate (CAGR 2019 to 2023)	11.3%

Brands Focus on Launching Innovative Toys for Striplings

The stripling (typically ages 0 to 14) segment emerged as the dominant end user in 2024, thereby driving the Europe smart toys market. This demographic has significantly contributed to the rising demand for smart toys, propelling the market to new heights. For example,

• Although this age group makes nearly 15% of the population in Europe, decreased birth rates are causing this share to gradually decline. This percentage is predicted to fall to about 13.6% by 2035, with additional declines anticipated after that.

Smart toys, including educational, robotic, and remote-controlled vehicles, have become increasingly popular among children in this age group. These toys offer engaging, interactive play experiences that promote cognitive and developmental health.

As younger generations become more tech-savvy, demand for innovative, interactive, and educational toys has surged, fueling the rise of smart toys. This trend is anticipated to continue as more brands tailor products to meet the interests and learning needs of the stripling demographic, solidifying their dominant position in the market.

School-going kids, on the other hand, are anticipated to hold a share of nearly 54.6% in 2024. Smart toys, which are frequently made to encourage coding, robotics, and critical thinking, are seen as useful resources to improve learning in a fun and interesting way.

It is because modern parents and educators are becoming aware of the value of offering kids these types of skills. In addition to keeping kids' attention, these toys help them develop their creativity, problem-solving skills, and teamwork.

Interactive Toys Lead as Parents Look for Edutainment Services

The interactive toys segment accounted for around 36% of the Europe smart toys market share in 2024, making it the most prominent contributor. This growth can be attributed to the expansion of edutainment services and increasing use of smartphones. These have become essential tools for interactive gaming. For example,

• LEGO Super Mario combines digital interaction with physical building. Youngsters can use a Mario figure with sensors and a screen that reacts to colors and movements to create courses and play games. In Europe-based markets like Germany and the U.K., the product is well-liked.

Interactive games provide a fun and engaging way for children to learn, offering creative methods for exploring knowledge. These games often involve solving puzzles or riddles within a virtual environment, fostering critical thinking and problem-solving skills.

They also serve as effective educational tools for young children, helping them grasp fundamental concepts such as letters and the alphabet in preschool. As more children engage with smartphones and interactive platforms, this segment is likely to continue driving the market's growth in the forecast period.

Educational toys, on the other hand, are anticipated to hold a share of about 29.5% in 2024. More emphasis on early childhood development and incorporation of technology into education are driving demand for educational toys in Europe.

The value of fostering children's cognitive, social, and emotional development from an early age is becoming apparent to parents. Children may develop their problem-solving, creative, and teamwork skills in an entertaining way with educational toys like STEM kits, puzzles, and interactive learning systems.

Market Introduction and Trend Analysis

The Europe smart toys market is rapidly evolving due to rising consumer demand for interactive and educational play experiences. Smart toys integrated with IoT, AI, and AR/VR technologies provide children with enhanced learning opportunities, making them increasingly popular among parents. As consumers become more tech-savvy, there is a rising preference for toys that foster cognitive, social, and emotional development.

The market has also seen a surge in online sales, making smart toys easily accessible to parents. Trends indicate a rising focus on eco-friendly, educational, and health-oriented smart toys. These innovations are likely to foster the market in the next ten years, offering personalized and sustainable play options that cater to the changing needs of both parents and children.

Historical Growth and Course Ahead

The Europe smart toys market witnessed a significant CAGR of 11.3% in the historical period from 2019 to 2023. It was fueled by technological developments and rising consumer demand for educational products. The integration of AI, IoT, and AR also transformed the toy industry, providing children with more personalized and immersive play experiences. However, challenges like product safety concerns and high manufacturing costs impacted growth. For example,

• In the U.K., smart toys generally range between US$ 50 and US$ 150, with high-end educational toys often exceeding US$ 200. In Germany, prices average between US$ 40 and US$ 130, with a focus on interactive and STEM-focused toys.

The market is anticipated to maintain a strong growth trajectory, driven by rising adoption of smart devices and continuous technological innovations. Trends such as personalized and health-focused smart toys are anticipated to shape the market's future. These present opportunities for further innovation, ensuring the continued evolution of smart toys that cater to the changing needs of both children and parents.

Market Growth Drivers

Rising Awareness of the Benefits of Smart Learning Toys to Spur Sales

Surging awareness of the benefits of smart learning toys is a significant market growth driver. More parents are now recognizing their potential to enhance children’s cognitive, emotional, and social development. For example,

• Lego Group recently introduced its Lego Boost series. It combines traditional Lego blocks with coding elements, allowing children to program their creations via a tablet.

Smart learning toys integrate unique technologies like AI, IoT, and AR, offering interactive play experiences that adapt to a child’s learning pace. These toys engage children in educational activities such as problem-solving, language development, and creativity, while also making learning fun.

As parents increasingly seek educational products that provide long-term developmental benefits, demand for smart learning toys continues to rise. This shift toward more informed purchasing decisions is fueling market growth. Parents are set to value toys that combine entertainment with learning, ultimately supporting growth of the market.

AI Technology to Gain Traction as it Helps Enhance Toy Interactivity

Increasing use of AI technology to enhance toy interactivity is a key driver of market growth, as it allows toys to engage children in more personalized and dynamic play experiences. AI-powered toys can learn from interactions, adapt to a child’s behavior, and provide customized feedback, making play more engaging and educational. For instance,

• Mattel's Barbie Dreamhouse integrates voice recognition and interactive AI features, catering to the rising demand for toys that provide personalized experiences.

Toys that recognize voice commands, understand emotions, or respond to changes in the environment offer children highly interactive and immersive play. As AI technology evolves, it continues to improve the functionality of smart toys. This makes the toys more intuitive and appealing to parents who seek products that foster creativity, problem-solving, and cognitive development, thereby driving growth of the market.

Market Restraining Factors

Complex Functionalities May Deter Non-tech-savvy Parents

Complex functionalities in smart toys may deter non-tech-savvy users, limiting their widespread adoption. While these toys offer novel features like AI, IoT connectivity, and interactive elements, they often require a certain level of technical knowledge to operate effectively.

Parents who are not comfortable with technology may find it challenging to set up or troubleshoot these toys, reducing their appeal. This complexity can also lead to frustration for both children and adults, especially if user-friendly instructions or intuitive interfaces are lacking. As a result, non-tech-savvy consumers may opt for simple, traditional toys, hindering demand among certain demographics. For example,

• Due to a lack of technological expertise, around 20% of parents in Europe find it difficult to operate smart toys. Growing sophistication of these toys, which frequently incorporate artificial intelligence, internet connectivity, and interactive capabilities, makes this problem much more difficult.

Limited Compatibility with Certain Devices or Platforms to Hamper Demand

Limited compatibility with specific devices or platforms is a significant factor impeding the Europe smart toys market. Various smart toys rely on certain operating systems, apps, or devices such as smartphones, tablets, or gaming consoles for full functionality.

If a toy is not compatible with widely used platforms or the consumer’s existing devices, it can lead to frustration and decreased demand. This issue is particularly relevant for parents who may not want to invest in new devices just to use a particular toy.

Compatibility concerns can further limit a toy’s appeal in areas or households where certain platforms are not very popular. As smart toys often require frequent updates or connectivity to perform optimally, limited cross-platform compatibility can be a leading barrier, reducing their market reach and adoption. For example,

• The popular interactive robot called Anki Cozmo faced challenges with device compatibility as its app initially supported only specific iOS and Android devices. The limited compatibility discouraged some users in Europe who did not own compatible smartphones.

Key Market Opportunities

Emergence of AI-based Educational Toys for Personalized Learning

Expansion of AI-based educational toys for personalized learning offers a transformative opportunity in the Europe smart toys market. By utilizing AI, these toys adapt to individual children’s learning speeds, preferences, and developmental milestones, providing customized educational experiences. Features such as real-time feedback, interactive problem-solving, and adaptive challenges not only enhance cognitive abilities but also maintain high levels of engagement.

The level of personalization resonates with parents seeking toys that blend entertainment with impactful learning. As AI technology accelerates, its deep integration into educational toys is likely to open new markets, appealing to tech-savvy families and fostering innovation. This trend is set to bolster substantial growth and diversification in the smart toys business.

Integration with Wearable Technology to Offer an Immersive Experience

Integration of smart toys with wearable technology presents an exciting future opportunity, offering a more immersive and interactive play experience. Wearable devices such as smartwatches, fitness trackers, or Augmented Reality (AR) glasses can enhance the functionality of smart toys.

The devices often enable real-time data exchange, motion tracking, and personalized feedback. This integration allows the toys to adapt to the child’s movements, physical activity, or even biometric data, creating a dynamic and engaging experience.

• The European Commission-funded ‘PlusMe’ project, which created a wearable interactive teddy bear, is a noteworthy example. The toy has sensors that can sense touch and react by producing lights, sounds, and vibrations, among other multimodal input.
• It was developed as a therapy tool to help kids with Autism Spectrum Disorder (ASD) become more socially engaged and communicate better.
• Using a control tablet, therapists can modify its responses to suit each patient's needs. During trials in Italy, the prototype has demonstrated encouraging results in generating children's interest and interaction.

Wearable-enabled smart toys can combine physical and digital play, encouraging active participation and promoting health and fitness. Additionally, AR-based wearables can create imaginative, interactive environments that blend virtual and real-world experiences. As wearable technology becomes highly accessible, its integration with smart toys is anticipated to push innovation and extend market potential.

Competitive Landscape for the Europe Smart Toys Market

The competitive landscape in the Europe smart toy market is changing rapidly as consumer tastes move toward more technologically sophisticated and interactive play options. Businesses in this market are using cutting-edge technologies like Augmented Reality (AR), machine Learning (ML), and Artificial Intelligence (AI) to produce toys that foster cognitive growth and offer engaging experiences.

International firms like Lego Group, Mattel Inc., and Hasbro Inc., as well as niche tech-focused toy producers such as Anki and WowWee, are key participants in the Europe smart brain toys industry. Additionally, a few local businesses like Playmobil and Silverlit are diversifying their product lines to include smart toys. These companies compete in branding, collaborations, and digital content integration in addition to product innovation.

Recent Developments in the Europe Smart Toys Market

• In May 2024, leading Belgium-based puzzle and game firm Smart Toys and Games welcomed the Wow Toys brand and staff to the surging Smart family by announcing the acquisition of Wow Toys company (NAD Developments). The company's development and presence in the U.K. are further enhanced by the acquisition of Smart, which is known for award-winning brands like SmartGames, IQ, Happy Cube, The Genius Square, GeoSmart, and SmartMax.
• In February 2024, Germany-based Just Play, a leading toy brand, launched its new range of furReal interactive pets across renowned retailers in the U.K. under license by Rhode Island-based Hasbro. Last year, the two businesses agreed to a global master toy licensing deal for the furReal brand. Newborns, Wag-a-lots, Walk-a-lots, and My Minis are among the realistic pets in the collection, which was made to accommodate various play styles. Children can take care of their newborn puppy or kitten by brushing, feeding, and swaddling them.

Europe Smart Toys Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	Germany France U.K. Italy Spain Russia Türkiye Rest of Europe
Key Market Segments Covered	Product Type Technology End User Distribution Channel Country
Key Companies Profiled	Lego Group Mattel, Inc. Hasbro, Inc. VTech Electronics Ltd. Fisher-Price (Mattel) DreamWorks Animation SKG, Inc. LeapFrog Enterprises, Inc. Sphero, Inc. Tech Will Save Us WowWee Group Ltd. LittleBits (Sphero) Anki, Inc. Yulu Toys Modular Robotics, Inc. CogniToys
Report Coverage	Market Forecast Company Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Market Segmentation

By Product Type

• Educational Toys
• Interactive Toys
• Remote-controlled Toys
• Augmented Reality Toys
• Robot Toys
• Others

By Technology

• IoT-based
• AI-based
• AR/VR-based
• Bluetooth-enabled

By End User

• Toddlers
• Pre-schoolers
• School-going
• Stripling

By Distribution Channel

• Offline
• Online

By Country

• Germany
• France
• U.K.
• Italy
• Spain
• Russia
• Türkiye
• Rest of Europe

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