UK Smart Toys Market Summary

The UK smart toys market size was valued at USD 834.5 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 11.1% from 2024 to 2030. Market growth is being accelerated by the rising adoption of smart devices and the increasing popularity of digital platforms among children. As access to smartphones, tablets, and connected devices continues to expand, children are naturally inclined toward toys that interact seamlessly with these technologies. The integration of advanced features such as augmented reality (AR) and virtual reality (VR) has further boosted adoption, as these technologies deliver immersive and interactive play experiences that enhance both entertainment and learning.

In 2023, the UK accounted for a 6.75% share of global smart toys revenue, highlighting its strong role in shaping international market trends. One of the key growth drivers is the increasing integration of the Internet of Things (IoT) into toys, allowing for a new dimension of interactive play. IoT-enabled toys can connect with other devices and platforms, creating a more engaging and multifunctional play environment. These features appeal to both children and parents, as they combine entertainment with educational and developmental benefits, while aligning with the digital-first lifestyle of modern households.

Key Market Trends & Insights

• The interactive games segment held a dominant revenue share of 73.67% in 2023, making it the leading category within the UK smart toys market. The incorporation of AR technology into interactive toys has significantly enhanced this segment’s growth. AR allows digital elements to merge with real-world play, creating a unique and immersive experience that fosters creativity, engagement, and learning through fun. Parents are increasingly viewing these products as tools that balance entertainment with educational value.
• By distribution channel, offline sales dominated the UK market with a revenue share of 75.69% in 2023. Physical stores remain a preferred shopping avenue as they provide children and parents the opportunity to test and experience smart toys firsthand before purchasing. The tactile, try-before-buy element is especially important in this segment, where physical interaction helps build consumer confidence and influences purchasing decisions.
• In contrast, online sales are expected to grow at a faster CAGR of 14.1% from 2024 to 2030. The expansion of global e-commerce platforms and cross-border trade, along with growing consumer comfort with online shopping, is contributing to this rapid growth. Online channels also provide greater product variety, competitive pricing, and access to international brands, making them increasingly attractive to parents seeking convenience and a wider range of smart toy options.

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Market Size & Forecast

• 2023 Market Size: USD 834.5 million
• 2030 Projected Market Size: USD 1,681.6 million
• CAGR (2024 - 2030): 11.1%

Key Companies & Market Share Insights

Several leading players are shaping the competitive landscape of the UK smart toys market. LEGO System A/S, a subsidiary of Kirkbi A/S, remains one of the most prominent players, offering an inclusive range of toys and games under its globally recognized LEGO brand. Its portfolio includes traditional brick-building sets, educational products, and interactive play solutions that promote creativity and development through play.

LeapFrog Enterprises Inc. specializes in educational entertainment products that cater to children across different age groups. Its LeapStart interactive system provides skill-building books and activities, while the LeapReader pen supports reading and writing development. The LeapPad series offers child-friendly tablets featuring educational games in a secure digital environment, complemented by the LeapFrog Academy digital learning platform.

Hasbro, Inc. is another major participant, with a broad portfolio across consumer products, entertainment, and digital gaming. Its strong retail presence, supported by its e-commerce site Hasbro PULSE, allows it to reach customers directly while also marketing through traditional retail outlets.

MindWare, Inc. has positioned itself as a direct-to-consumer brand, focusing on "Brainy Toys" that promote creativity and problem-solving. Its offerings include educational games, puzzles, building sets, and robot toys designed to inspire curiosity and cognitive development.

Other notable players in the UK market include Mattel, Inc. and Sphero, Inc., both of which continue to innovate and expand product portfolios to capture the growing demand for smart toys that combine fun with learning.

Key Players

• LEGO System A/S
• LeapFrog Enterprises Inc.
• Sphero, Inc.
• Mattel, Inc.
• Hasbro
• MindWare, Inc
• Dynepic
• Neurala
• Lego System A/S
• Arduino

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Conclusion

The UK smart toys market is experiencing strong growth as children’s increasing use of digital devices and demand for interactive play drive adoption. The integration of AR, VR, and IoT technologies has transformed traditional toys into immersive, educational, and engaging experiences, further fueling consumer interest. Offline retail remains dominant due to experiential benefits, though online sales are set to expand rapidly with the rise of e-commerce. Key players such as LEGO, LeapFrog, Hasbro, and MindWare continue to innovate, shaping market direction through diverse offerings. With parents prioritizing educational value alongside entertainment, the UK smart toys market is well-positioned for sustainable expansion.