STEM Toys Market to grow by USD 8.09 Billion (2024-2028), driven by emphasis on STEM education; Report on AI's impact on market trends - Technavio

NEW YORK, Dec. 3, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global science, technology, engineering and mathematics (STEM) toys market size is estimated to grow by USD 8.09 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.89%  during the forecast period. Growing emphasis on stem education is driving market growth, with a trend towards integration of artificial intelligence (AI) and machine learning (ML) technologies in stem toys. However, high cost of stem toys  poses a challenge. Key market players include 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..

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Market Driver

The STEM toys market is experiencing significant growth due to urbanization and literate parents seeking unique learning experiences for their children. This trend is driven by the integration of engineering, mathematics, gravity, and coding into educational curriculums. Supermarkets, hypermarkets, departmental stores, specialty stores, and online platforms are capitalizing on this trend by stocking educational robots, coding toys, and STEM-focused digital gaming. Toy subscriptions and one-day delivery services are also gaining popularity. The market is fragmented with market players employing both organic and inorganic strategies, including business expansions, acquisitions, and innovation. Geographic segmentation reveals varying consumer interests and material impact in different regions. The ecosystem includes emerging players offering niche offerings, while digital transformations and personalized learning styles are driving innovation. The outlook for the short-term is positive, with steady YOY growth expected. Business resilience and bottom-line management are key concerns for vendors, while research data and analyst support are essential for informed decision-making. The value chain includes toy distribution and toy manufacturing, with alternative products and educational benefits attracting consumer interest. Digital replicators and interactive experiences are enhancing the learning experience, while exploration and experimentation remain fundamental to STEM education. 

The STEM toys market has experienced significant growth with the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies. These advanced technologies have transformed the educational value of toys by offering personalized learning experiences and encouraging critical thinking. AI and ML enable STEM toys to adapt to a child's unique abilities and learning style. For instance, the Cubetto Playset is a coding toy that utilizes AI technology to provide customized learning paths. The toy applies ML algorithms to analyze a child's interactions and adjusts the challenge level accordingly. This innovative approach enhances the potential for experimentation and exploration in STEM learning. 

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Market Challenges

• The STEM toys market is experiencing significant growth due to urbanization and literate parents seeking unique learning experiences for their children. STEM toys, which include engineering and mathematics toys, have a material impact on problemsolving and logical reasoning skills. Supermarkets, hypermarkets, departmental stores, specialty stores, and online platforms are key distribution channels. Engineering and mathematics toys, such as those based on gravity, coding, and educational robots, are popular. Innovation and digital transformations are driving the market, with emerging players offering niche offerings. Geographic segmentation and analysis are essential for business expansions and acquisitions. The value chain includes vendor management, research data, and analyst support. The market is fragmented with YOY growth, personalised learning, and interactive experiences being key trends. Alternative products and educational benefits attract consumer interest. Business resilience is crucial, with bottomline management and one-day delivery important for market players. The outlook is positive for short-term, mid-term, and long-term growth. Digital replicators and vivid images provide instant feedback for experimentation and exploration, catering to different learning styles.
• The global STEM toys market faces a substantial hurdle due to the high cost of these educational products. The advanced technology, premium materials, and extensive research involved in creating STEM toys result in a higher price point. For instance, a robotics kit that enables children to construct and program their robots comes with a premium price tag. The intricate components, sensors, and software included significantly increase the cost, ranging from USD100 to several hundred dollars. This price barrier can restrict market growth and hinder the widespread adoption of STEM toys among a broader consumer base.

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Segment Overview 

This science, technology, engineering and mathematics (stem) toys market report extensively covers market segmentation by  

1. Application 
• 1.1 In-home
• 1.2 In-school
2. Age Group
• 2.1 9-10 years
• 2.2 6-8 years
• 2.3 11-13 years
3. Subjects 
• 3.1 Science
• 3.2 Engineering
• 3.3 Mathematics
• 3.4 Technology
4. Geography 
• 4.1 APAC
• 4.2 North America
• 4.3 Europe
• 4.4 Middle East and Africa
• 4.5 South America

1.1 In-home-  The in-home STEM toy market is experiencing significant growth due to several factors. First, the importance of early STEM education is increasingly recognized, leading to a greater demand for at-home learning resources. In-home STEM toys offer an accessible and engaging way for children to explore STEM concepts, fostering critical thinking, problem-solving, and creativity. Second, the need for educational entertainment at home is driving demand for these toys. With concerns about excessive screen time, in-home STEM toys provide an alternative form of entertainment that is both engaging and educational. These toys offer interactive experiences, challenges, and experiments that stimulate children's curiosity and promote learning in a screen-free environment. Additionally, the convenience and accessibility of in-home learning opportunities are making STEM toys a popular choice for families. Parents appreciate the flexibility of having educational resources readily available at home, allowing children to engage in STEM activities at their own pace and convenience. Popular in-home STEM toys, such as the Snap Circuits Electronics Exploration Kit and the Gravity Maze Marble Run, introduce children to fundamental STEM concepts in a hands-on and engaging manner, making learning fun and enjoyable. These advantages are expected to continue driving demand for in-home STEM toys, contributing to the growth of the in-home segment in the STEM toy market during the forecast period.

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Research Analysis

The STEM toys market is experiencing significant growth due to urbanization and the increasing number of literate parents seeking unique learning opportunities for their children. These toys, which focus on Science, Technology, Engineering, and Mathematics, offer hands-on experiences that foster problem-solving and logical reasoning skills. Sustainability is also a key consideration in the industry, with many manufacturers using eco-friendly materials and educational curriculums aligning with STEM education. STEM toys can be found in various retail channels, including supermarkets, hypermarkets, departmental stores, and specialty stores. Engineering and mathematics-focused toys often incorporate principles of gravity and other scientific concepts. Innovation and digital transformations continue to shape the market, with emerging players offering niche offerings and established companies expanding through business acquisitions. Geographic segmentation and geographic analysis are essential for understanding the market's trends and opportunities. Research data indicates that the Asia Pacific region is expected to dominate the market due to its large population and increasing focus on STEM education. Vendor management is crucial for retailers to effectively manage their supply chains and ensure the availability of these popular items.

Market Research Overview

The STEM toys market is experiencing significant growth due to urbanization and literate parents seeking unique learning opportunities for their children. STEM toys encompass engineering, mathematics, and scientific concepts, often incorporating gravity, educational curriculums, and coding. Supermarkets, hypermarkets, departmental stores, specialty stores, and online platforms serve as key distribution channels. Digital gaming, educational robots, and toy subscriptions are emerging trends. Geographic segmentation and analysis reveal innovation and digital transformations in the market. The ecosystem includes niche offerings from various market players, with some employing inorganic strategies for business expansions and acquisitions. The value chain involves vendor management and research data support. Analysts anticipate continued YOY growth, driven by personalized learning, fundamental thinking, experimentation, and exploration. Alternative products offer educational benefits, consumer interest, and resources, while digital replicators and interactive experiences provide vivid images and instant feedback. The fragmented nature of the market calls for bottomline management and business resilience. The outlook for the short-term and long-term is positive, with a focus on sustainability and problem-solving skills.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• In-home
• In-school
• Age Group
• 9-10 Years
• 6-8 Years
• 11-13 Years
• Subjects
• Science
• Engineering
• Mathematics
• Technology
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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