The global STEM toys market size to cross USD 9.5 billion by 2025, growing at a CAGR of 7% during the forecast period. The analysis of the market forecasts that the industry will witness 1.5X times growth during the forecast period. The market is expected to observe significant growth because of the emergence of robotics, STEM-based courses, the need for cognitive and mental development, and the rise in millennial spending for nostalgia. However, the market is heading toward sustainable growth due to the rise in sustainability practices in the global STEM toys market. Manufacturers, distributors, retailers, and buyers are paying attention to the concept. Sustainable platforms such as exchange platforms and toy subscriptions can be focused on in the coming years. Global toy fairs are more likely to increase the awareness and scope for sustainable materials in the near future, which could have a high impact on the global toy industry.
- The 8–12 age group segment is expected to be the fastest-growing segment with a CAGR of over 7% during the forecast period.
- The increasing popularity of high-end construction and engineering, circuits and electricity, DIY projects, robotics & coding, AI, and sensor-based interactive toys are increasing the 12+ years age group segment's market growth.
- Online channels are estimated to be the fastest-growing distribution agencies during the forecast period, with a 7.56% CAGR.
- The STEM toys market in Europe is projected to reach a revenue share of over $2 billion by 2025 on account of the rise in interest in scientific and educational toys along with e-learning, the quick adoption of premium products, and the increasing preference for sustainability and eco-friendly materials.
GLOBAL STEM TOYS MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Age Group
INSIGHTS BY CATEGORIES
The technology segment is expected to grow at a CAGR of over 7%. The growth in educational robots, coding, and smart STEM toys is expected to drive the segment. Technological toys are highly preferred among kids and pre-teens, especially among boys. Coding and programming toys are also increasingly aimed at 3–5 years children. APAC is the fastest-growing region for the segment.
The science segment is expected to pose an absolute growth of 44% during the forecast period. Europe and North America are likely to grow at impressive growth rates. Gravity, lighting, physical laws, chemical projects, and geographic exploration are the major themes contributing to revenue generation in the segment. Vendors are recommended to capitalize on the segment by offering the highly preferred fictional and movie characters based on the regional preference to get wider acceptance.
Like board games, engineering toys are used for the development of strategic and building skills among teenagers and are expected to grow at a CAGR of close to 7%. Owing to a strong culture of playing building games in countries such as India, Brazil, and Mexico, the growth is expected to be prominent in APAC and Latin America. The rise in the number of theme-based construction kits is driving the demand in western countries. The segment has emerged as one of the high-demand segments during the 2020 pandemic. The construction segment is highly preferred for developing engineering and building skills. Sustainability and eco-friendliness can be a major trendsetter and considered as the next big opportunity in the segment. The mathematic segment is expected to account for over 7% of the global revenue by 2025. APAC is the fastest-growing market in the region. It is expected to continue during the forecast period due to China's high production and consumption in countries across the APAC region. The interest in numerical and analytical toys is generally high among kids in the region.
INSIGHTS BY AGE GROUP
The 8–12 age group segment is estimated to be the fastest-growing segment during the forecast period. Vendors prioritize their offerings and promote products toward this age group because of the development of skills and diversified field of strategies. Parents consider 8–12 years as an ideal age for utilizing STEM education toys that support academics. LEGO, Hasbro, and Mattel are major vendors in the STEM education market, catering to this group by developing blocks, engineering sets, scientific and electronic toys. The 3-8 years segment accounted for over 31% of the total share in 2019. The boom of smart and connected toys is expected to support the segment. Further, the dominance of electronic and technology-oriented products is well utilized. Therefore, the segment is expected to reach over $3 billion by 2025. The segment consists of educational toys and games ideal for countries where the scope of STEM-related professions is high. They are popular in Asia, especially in China, Europe, North America, and GCC, owing to high internet penetration levels. The 0–3 years segment is expected to grow at a CAGR of close to 6% during the forecast period. APAC is estimated to emerge as the fastest-growing region. China is expected to dominate the market, with Malaysia, Thailand, and Singapore expecting to lead the STEM toys market growth. Basic math sets, science kits, subject-based exploration STEM kits for kids, and simple construction sets are major revenue generators in the segment.
INSIGHTS BY DISTRIBUTION
Online channels consist of websites and third-party sellers that sell games via online stores. They are estimated to be the fastest-growing distribution channels during the forecast period. The growth in digital gaming platforms has indirectly influenced the growth of the online purchase of games. Moreover, the concept of toy subscription features from Amazon has been a gamechanger in online distribution models. Amazon, eBay, Best Buy, JD.com, and Alibaba are online retailers.
The specialty stores segment includes companies’ own brick-and-mortar stores. Stock availability and personalization of services are the major driving factors for the dominance of specialty stores over other retail formats. The franchising of specialty stores from major vendors continues to be a successful business model over the years.
The sale of STEM toys through retail stores such as supermarkets has always been a norm globally. Science and experimental kits and mathematical and numerical sets are more popular segments of the channel. These stores generally sell products at a single price point and are popular among customers that prefer to purchase non-branded and low-priced STEM products. The easy accessibility of these stores helps them satisfy the customer's immediate requirements. Departmental stores offer medium-to-high-priced STEM toys. The departmental stores channel is expected to be prominent in the APAC region. By intensifying growth prospects through domestic and global brands, departmental stores compete with the other retail formats.
INSIGHTS BY GEOGRAPHY
North America was the largest STEM toys market with a share of contributed over 33% in 2019. Factors such as a high spending power among millennials, inclination toward interactive electronic games, and high urbanization drive the growth of the educational toys market in North America. The US is the largest market in the region, followed by Canada, offering a high scope room for growth in the coming years. The toy community in the US is highly dedicated to manufacture and distribute learning toys that are safe, fun, valuable, and comply with the country's rigorous standards and regulations. When it comes to the gaming industry, there is a cultural disparity between North Americans and Europeans. Traditionally, North Americans used to enjoy light board games such as collectible card games and tabletop board games that are based on the luck or chance factor. The region was less inclined toward tabletop board games, which are cooperative and competitive in nature and involve critical thinking. However, the scenario has changed in the last three years as the demand for fun, engaging, and learning toys increases among kids and teenagers.
INSIGHTS BY VENDORS
LEGO, Hasbro, and Mattel are enjoying a strong position in the global science, technology, engineering, and mathematics toys market. However, the market still consists of small yet key vendors such as Ravensburger, Spin Master, Learning Resources, Sphero, and Melissa & Doug. With a sufficient number of vendors across all regions, the consumer's choice has been elaborated, making the competition more intense. The STEM toy market can be more versatile in nature, keeping pace with the latest market trends, and the competition is highly crucial for market success. Smaller vendors tend to reduce their games' prices, forcing established vendors to slash their retail prices or suffer losses. The expansion of competition across regions further leads to shorter life cycles of products in the market. The emergence of more and more vendors has led to the frequent introduction of new products.
The STEM toys market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
By Age Group
- 0–3 years
- 3–8 years
- 8–12 years
- 12+ years
- Supermarkets & Hypermarkets
- Departmental Stores
- Specialty Stores
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa