The future of connected toys

According to Tandem, 2015 was the first year in which consumers showed a continuous interest in connected toys outside of the holiday period, as analysed in this article by Doug Renert and Nick Mayberry. A new trend in demand for toy connectivity has transformed this feature as a fundamental element of play. This change has been witnessed by startups who are now tackling the toy industry, worth $90 billion, for further development. Three segments have been identified and classified according to the level of interest by startup and funds by investors: smartphone-controlled robots have raised the most fundings to date ($200 million), programmable educational toys have received $89 million in funding since 2011 between just two companies (littleBits and Modular Robotics) and finally “toys-to-life”have attracted the least fundings but their estimated revenues for 2018 are the highest.