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The science, technology, engineering and mathematics toys (STEM) market size is forecast to increase by USD 8.09 billion at a CAGR of 8.89% between 2023 and 2028. The STEM toys market is experiencing significant growth due to the increasing emphasis on Science, Technology, Engineering, and Mathematics (STEM) education worldwide. This trend is driven by the recognition of the importance of STEM skills in today's technology-driven world. Another key trend is the integration of artificial intelligence (AI) and machine learning (ML) technologies in STEM toys, making learning more interactive and engaging for children. However, the high cost of STEM toys remains a challenge for some consumers, limiting their accessibility to a wider audience. Despite this, the market is expected to continue its growth trajectory, driven by advancements in technology and the increasing demand for STEM education.
The STEM toys market is witnessing significant growth due to the increasing urbanization and literate parents' demand for unique learning experiences for their children. These toys, which focus on engineering, mathematics, gravity, and problem-solving, are essential tools for fostering logical reasoning and innovation. The market is segmented based on geography, with each region presenting unique opportunities and challenges. Supermarkets, hypermarkets, departmental stores, and specialty stores are key distribution channels for STEM toys. Sustainability is a crucial factor influencing the market, with eco-friendly and educational curriculums becoming increasingly popular. The ecosystem of STEM toys is dynamic, with emerging players offering niche offerings and digital transformations impacting vendor management.
Research data indicates that the market is expected to experience business expansions and acquisitions, driven by the material impact of STEM education on the development of essential skills. The market's innovation is a response to the growing demand for toys that align with educational curriculums and provide engaging, hands-on experiences. Geographic analysis reveals that each region presents unique opportunities and challenges, requiring tailored strategies for market penetration.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The in-home segment is estimated to witness significant growth during the forecast period. The STEM toys market is witnessing significant growth due to urbanization and the rising number of literate parents seeking unique learning opportunities for their children. In home STEM toys, which include engineering and mathematics-focused toys that can be used within the family environment, are gaining popularity. Factors driving this trend include the increasing importance of early STEM education, the need for educational entertainment at home, and the convenience of learning in a familiar setting. The in home segment is experiencing an increase in demand, with an emphasis on STEM education that fosters problem-solving and logical reasoning skills. Sustainability is also a material impact, as parents look for eco-friendly and educational toys.
STEM toys are available at various retail channels such as supermarkets, hypermarkets, departmental stores, specialty stores, and online platforms. Digital gaming, educational robots, and coding toys are popular offerings in the online segment. Toy subscriptions and one-day delivery services have further boosted the market's growth. The ecosystem includes a geographic segmentation, with emerging players focusing on niche offerings and digital transformations. Innovation and innovation strategies, such as inorganic growth and bottomline management, are key to market players' success. The outlook for the STEM toys market is positive, with short-term and long-term growth opportunities. Business resilience and effective vendor management are crucial for market players to navigate the ecosystem and maintain a competitive edge.
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The in-home segment accounted for USD 7.27 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The STEM toys market in APAC is experiencing significant growth, driven by urbanization and the increasing number of literate parents prioritizing unique learning experiences for their children. China, Japan, South Korea, and India are the leading revenue-generating countries in the region. This growth can be attributed to rising disposable incomes, increasing consumer awareness of STEM toy brands, and the willingness to invest in educational toys. Additionally, the demand for licensed products based on popular movies and television shows is positively impacting the market. Extensive industrialization and economic activities in countries like India and China have boosted household incomes, further fueling the demand for STEM toys.
The regional market is segmented into supermarkets, hypermarkets, departmental stores, specialty stores, and online platforms. Engineering and mathematics-focused toys, including those based on gravity, educational curriculums, engineering robots, coding, and digital gaming, are popular choices. Innovation and digital transformations are key trends shaping the market, with emerging players offering niche offerings. The market ecosystem includes market players employing both inorganic and organic strategies for growth. The short-term outlook is positive, with a steady growth rate expected, while the long-term outlook is optimistic, driven by the material impact of STEM education on problem-solving and logical reasoning skills. Business resilience and bottom-line management are crucial for vendors in this competitive market.
Toy distribution channels, including one-day delivery and offline segments, are evolving to meet the changing consumer preferences. Geographic segmentation and geographic analysis are essential for understanding the market dynamics and identifying growth opportunities.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing emphasis on STEM education is the key driver of the market. The STEM toys market has experienced remarkable growth due to the increasing emphasis on STEM education worldwide. Research data indicates a year-on-year expansion in this sector, driven by the fundamental importance of STEM fields in preparing the next generation for future careers. The value chain of this market is undergoing significant changes, with businesses undergoing acquisitions and expansions to cater to the evolving consumer interest in personalised learning experiences. The fragmented nature of the market is leading to an influx of alternative products, each offering unique educational benefits. Parents and educators are increasingly recognizing the value of STEM toys in fostering experimentation, exploration, and alternative learning styles.
Coding and robotics toys, in particular, are gaining popularity due to their ability to promote fundamental thinking and instant feedback. The digital age has made coding a vital skill, and STEM toys that facilitate this skill development are in high demand. Interactive experiences, vivid images, and instant feedback are key features that make STEM toys an attractive option for consumers. With the help of analyst support, manufacturers are continually innovating to meet the evolving needs of consumers, offering digital replicators, experiment kits, and other resources to make learning fun and engaging.
Integration of artificial intelligence (AI) and machine learning (ML) technologies in STEM toys is the upcoming trend in the market. The global STEM toys market is experiencing significant growth, driven by the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies. According to research data, the market is projected to exhibit a Year-over-Year (YOY) growth rate of over 10% through 2025. This expansion is attributed to the value-added benefits of STEM toys, including personalized learning experiences, fundamental thinking development, and interactive exploration. AI and ML technologies enable STEM toys to adapt to a child's unique learning style and abilities, providing instant feedback and vivid images to enhance the educational experience. For instance, the Cubetto Playset is a coding toy that uses AI technology to analyze a child's interactions and adjust the difficulty level accordingly.
These advancements have led to an increase in consumer interest, with parents and educators recognizing the importance of alternative products that promote STEM learning. The fragmented nature of the market is leading to business expansions and acquisitions as companies seek to capitalize on the growing demand for STEM toys. Analysts support this trend, noting that the educational benefits of these toys are crucial in today's digital age. As the market continues to evolve, we can expect to see more innovative products and resources that cater to diverse learning styles and needs.
High cost of STEM toys is key challenge affecting the market growth. The STEM toys market is experiencing significant business expansions and acquisitions, driven by the increasing value consumers place on personalised learning and fundamental thinking. According to research data, the market is witnessing year-on-year growth, with a fragmented nature that caters to various learning styles and consumer interests. The market offers a wide range of alternative products, from digital replicators that provide interactive experiences with vivid images to hands-on experimentation and exploration. Despite the educational benefits of STEM toys, their high cost remains a challenge. Advanced technology, quality materials, and research involved in their development result in a higher price tag.
This cost can limit the market size and hinder widespread adoption. However, the market continues to attract analyst support, driven by the growing consumer interest in resources that promote alternative forms of learning and instant feedback.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Building Blocks Learning Solutions Pvt. Ltd. - The company showcases an extensive collection of Science, Technology, Engineering, and Mathematics (STEM) toys, catering to the educational and entertaining needs of young learners.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The STEM toys market is witnessing significant growth due to the increasing urbanization and literate parents' focus on unique learning opportunities for their children. These toys, which incorporate elements of science, technology, engineering, mathematics, and often incorporate concepts like gravity and coding, are gaining popularity as they align with educational curriculums and foster problem-solving and logical reasoning skills. The market for STEM toys is diverse, with distribution channels including supermarkets, hypermarkets, departmental stores, specialty stores, and online platforms. The offline segment continues to dominate, but digital transformations, such as online toy subscriptions and one-day delivery, are driving growth in the online distribution segment.
Innovation and sustainability are key factors in the STEM toys market, with emerging players offering niche offerings and market leaders implementing inorganic strategies to expand their reach. Geographic segmentation and analysis are crucial for understanding market trends and opportunities, with the outlook for the market being positive in the short to long term. Business resilience and bottom-line management are essential for vendors in this ecosystem, as they navigate the challenges and opportunities presented by digital gaming, educational robots, and the material impact of the ecosystem.
Market Scope |
|
Report Coverage |
Details |
Page number |
190 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.89% |
Market growth 2024-2028 |
USD 8.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.87 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Building Blocks Learning Solutions Pvt. Ltd., Dilly Dally Kids, Elation Edtech Pvt. Ltd., Elenco Electronics Inc., Evollve Inc., Fat Brain Toys LLC., Franckh Kosmos Verlags GmbH and Co. KG, Fun Express LLC, Funvention Learning Pvt. Ltd., GoldieBlox Inc., Hape International Inc., Hasbro Inc., Innovation First International Inc., Learning Resources Ltd., LEGO System AS, Makeblock Co. Ltd., Makey Makey LLC., Mattel Inc., MobilizAR Technologies Pvt. Ltd., MVW Holdings Inc., Nesta Toys, Piper Learning Inc., PlanToys.com, PlayMonster LLC, Ravensburger AG, Scientifics Direct Inc., SmartGurlz, Smartivity Labs Pvt. Ltd., SND Digital Retails LLP, Sphero Inc., Spin Master Corp., Thimble, Timbuk Toys, Tinkering Labs Inc., and Xinxiang Alpha Manufacturing Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Age Group
8 Market Segmentation by Subjects
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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