However, in the face of changing consumer behavior and demands, the AI-powered toy industry is undergoing a major transformation, with smart toys that provide interactive experiences for children becoming extremely popular as parents desire to purchase toys that allow their children to learn and develop skills while playing. The AI toy market is currently growing at a significant rate due to the increasing usage of AI-enabled educational applications, talking robots, STEM learning toys, IoT and cloud integration, etc.
According to SNS Insider, the market size of the smart AI toy market is estimated to be USD 18.52 billion in 2025 and is expected to grow to USD 55.23 billion by 2035, with a compound annual growth rate (CAGR) of 11.85% from 2026 to 2035. This primarily includes interactive and educational toys, NLP and machine learning techniques, STEM learning toys, voice-activated toys, toys connected to the Internet of Things, and emotional companion robots.
Leading companies in the global smart AI toy industry:
1. Lego Group
The company offers AI-enabled robotic building blocks, programmable STEM learning systems, and digital learning platforms that incorporate digital coding and smart sensor technology. Its products include Lego educational robots, AI-enabled coding kits, and a learning ecosystem that students can use at home and at school. As of 2025, the company has further improved the Lego educational ecosystem by enabling AI-enabled coding and robotics, gaining a stronger foothold in the smart AI toy market segment.
2. Mattel
Mattel, one of the leading manufacturers of artificial intelligence-enabled toys, develops toys, learning devices, games, and smart companions for well-known brands such as Barbie and Hot Wheels. Conversational AI, personalized learning and app-connected toys characterize the core of the brand. In 2025, Mattel collaborated with OpenAI, a leading generative AI organization, to bring generative AI to future toy products.
3. Hasbro
Hasbro Inc. offers toys that integrate AI technology, gaming products that connect with apps, digitized storytelling software, and voice-enabled features. The company has blended the use of physical toys with digital interaction through AI for use by children and their families. In 2025, Hasbro incorporated the use of AI into its toys by improving app connectivity and digital interactions.
4. UBTECH Robotics
The main products offered by UBTECH Robotics include AI humanoid robots, programming robots, and smart STEM teaching learning robots for use in both educational institutions and home environments. The company’s products include programming robots, AI learning robots, and interactive voice robots for learning purposes. Recently, the company has stepped up its efforts in global education and the advancement of AI robots.
5. Sony Group Corporation
Sony Group Corporation has been offering robots equipped with artificial intelligence that act as corporate pets and provide smart entertainment to users. It features emotionally interactive technology delivered in the form of robot companions and entertainment products that leverage artificial intelligence, sensors, and machine learning. Sony’s latest developments include enhancements to emotion recognition technology, behavioral learning, and adaptive communication technology, further increasing its appeal in the smart companion market.
6. V-Tech Holdings Co., Ltd.
VTech Holdings Ltd is engaged in manufacturing electronic educational toys, AI educational tablets, computer programming software and other interactive smart learning devices for children. VTech focuses on providing affordable and effective educational solutions through AI technology that combines voice recognition and app integration. Additionally, VTech recently added value to its smart learning device portfolio by introducing an improved version of its educational toys with multilingual capabilities and learning customization features.
7. Miko (Emotics)
Miko (Emotix) is a company that builds intelligent tutoring systems through the development of conversational learning robots and emotionally interactive smart toys for children. Miko’s product range includes AI tutors, voice-activated robots, and personalized learning assistants with NLP and emotional intelligence capabilities. The company recently enhanced its learning AI system by incorporating advanced conversational AI, multilingual education, and behavioral learning capabilities.
How will smart AI toys transform learning and child development?
In the coming years, the smart AI toys market will witness high growth due to the increasing use of AI technology in the fields of education, entertainment, and child development. Competition in the market will continue to increase as the use of conversational AI, emotional recognition technology, Internet of Things connectivity, and cloud learning technology increases. Educators and parents are increasingly focusing on personalized learning solutions that provide entertainment as well as education, especially in the areas of STEM and language education.
Meanwhile, improvements in machine learning, edge computing, and computer vision technology are expected to make AI toys more responsive, adaptable, and emotionally intelligent in the future. Companies that focus on developing multilingual, treatment-based, and education-based products will have a strong competitive advantage in the future.
About the author
