Stem Toys Market - By Type, By Age Group, By Distribution Channel, Forecast 2024 – 2032

Stem Toys Market Size

The global stem toys market size was valued at USD 5.5 billion in 2023. The market is expected to grow from USD 6 billion in 2024 to USD 13.1 billion in 2032 at a CAGR of 9.1%. STEM toy sets help skill development at a young age and differ from normal toys which help increase leisure activities. Video games, robots, and science toys offer children new ways to spend their free time, which allows them to be more creative.
 

The globalization of new STEM toys also increases interest and buying power for those related products. Parents and teachers are eager to find toys that can help develop a child's critical and creative thinking. Many developers of recreational products, including toys and games, are diversifying their STEM product line. By doing so, they are able to satisfy both the demand for education toys and traditional toys. Furthermore, those companies can widen the audience of children’s toys by putting STEM toys next to video games and action figures, because parents will appreciate the educational aspect of the toys. This allows for a higher sell volume and greater profit margins for the developers of leisure products.
 

Organizations have shifted their focus to creating toys that appeal to children irrespective of their gender, ethnicity or socio-economical background in an attempt to further inclusivity in STEM education. These collaborations between STEM educational providers and manufacturers of recreational products have resulted in the blending of entertainment and learning towards themed products. As the outlook states, the US Department of Commerce estimated a 10.5 percent growth for STEM occupations from 2020-2030 compared to 7.5 percent in non STEM fields.
 

Many STEM toys incorporate advanced technology and materials, making them relatively expensive compared to traditional toys. The higher price point may limit accessibility for lower-income families. Additionally, despite growing awareness of the importance of STEM education, not all parents fully understand the benefits of STEM toys or how to integrate them into their children's learning experiences. Educating parents about the value of STEM toys and providing resources for effective implementation can be a challenge. Despite efforts to create inclusive STEM toys, there's still a prevalence of gender stereotypes in toy marketing and design. This can discourage children, especially girls, from engaging with STEM toys, leading to a narrower market segment.
 

Stem Toys Market Trends

• STEM toys combine play and education.” They enable children to learn while they enjoy themselves. This is the reason why many parents prefer toys which serve a dual purpose of fun and education. This integration of recreation and learning gave rise to the STEM approach in the design of leisure products like board games, puzzles, and even sports which, in turn, contributed to the expansion of the entire recreational products industry.
   
• Thus, a new market was created as STEM educators joined forces with recreational manufacturers to design themed products that were both entertaining and educational. Some of these products include board games for scientific discovery, construction sets for engineering, and math puzzles. Such products delight children and also help stimulate their curiosity and STEM knowledge.
   
• Breakthroughs in artificial intelligence (AI) and machine learning have led to the development of smart STEM toys that provide personalized learning experiences for children. The National Science Foundation (NSF) claims children who have contact with STEM reasoning early on develop greater problem solving and critical thinking skills necessary for their future jobs. With the ability to capture such a vast audience, the market for STEM toys has expanded the range of target consumers to include children, teenagers, adults and even non-educational marketers.
   
• Furthermore, the growth trend enables manufacturers to reach out to new demographics, developing products that interest and appeal to specific skill sets. In addition, the Census Bureau of the United States stated that parents with children aged under 18 years spent around $1200 per year in 2022 in educational and other leisure materials, thus, indicating an increase in spending for these purposes.
   

Stem Toys Market Analysis

Based on type, the market is divided into science, technology, engineering, mathematics. Engineering dominated the market, with revenue of USD 1.7 billion in 2023 which is expected to exceed USD 4.2 billion by 2032.
 

• Engineering toys help children learn by enabling them to actively build, create, and experiment. This is especially valuable for teaching STEM because this form of instruction is multi-sensory, active, and problem-centered.
   
• Furthermore, these toys often facilitate group work, as children can attempt to build structures or complete various engineering challenges collaboratively, which also develops their communication and cooperative skills.
   
• Along with helping children socially, many engineering toys involve construction, assembly, and other manipulative activities which encourage the development of children’s spatial skills. These abilities are important for geometry and even more advanced fields like architecture and mechanical engineering.
   

Based on age group, the stem toys market is categorized into 0–3 years, 3–8 years, 8–12 years, 12+ years. In 2023, the 3-8 years segment accounted for a market share of about 38% and is expected to reach market share of 42% by 2032.
 

• STEM toys specifically developed for children between 3-8 years of age are created with a goal in mind; to enhance cognitive development from a young age. All kids are exceptionally curious about everything around them, STEM toys try to solve that curiosity with hands on experience which enhances critical thinking, problem solving, creativity and many more skills.
   
• Furthermore, children age 3-8 can grasp new concepts easily through play time. Learning becomes more effortless with STEM toys and STEM concepts start becoming fun and easy, blocks, puzzles, and rigorous experimentation open the world of science and engineering in a very fascinating way.

North America dominated the global stem toys market, generating about USD 1.8 billion in 2023 and is expected to reach USD 4.2 billion by 2032.
 

• In North America, education is highly valued and parents along with educators work towards preparing children for careers in technology and innovation by emphasizing on STEM subjects. STEM toys are viewed as instruments for propelling learning even at an early age.
   
• Moreover, Governments and educational institutions in North America tend to fund projects that increase the popularity of science, technology, engineering, and mathematics education. Such funding includes allotments for STEM programs in schools and campaigns seeking the production and use of STEM toys.
   
• The United States, in particular, is known for its large economy and high rates of disposable income making them the largest market for educational toys and materials. However, in North America, some major companies in the toy industry, which include stem focused toy manufacturers, have already established themselves and started funding STEM toy marketing in the region for a percentage of the market share.
   

North America: The U.S. dominated the stem toys market with revenue of around USD 1.4 billion in 2023 and with a CAGR of 9.2% for the forecast period of 2024 to 2032. In the recent past, the need for STEM (Science, Technology, Engineering, and Mathematics) toys in the US Market has evolved tremendously as a result of several major factors which show a social and educational development. One of the primary demand drivers is the rising appreciation regarding the significance of childhood education for future academic and professional endeavors. Parents, teachers, and politicians have started paying more attention to nurturing skills vital for the 21st century – solving problems, critical analysis, and creativity.
 

Europe: Germany dominated the market with a market share of 22% in 2023 and with a CAGR of 8.7% for the forecast period of 2024 to 2032. The German parents, educators and politicians are increasingly realizing the importance of developing critical thinking, problem solving, and digital skills in children as early as possible, and consider STEM toys as a aid towards achieving this goal. In Germany, where advanced manufacturing, automotive, and engineering are central to the economy, STEM’s ability to teach coding, robotics, engineering, and other technical disciplines in an interesting way makes these toys very attractive. STEM toys further prepare children for careers in these sectors by providing them with some hands-on experience in applying STEM concepts and nurturing an interest in technology at a young age.
 

Asia Pacific: China spearheaded the market with revenue of around USD 900 million in 2023 and is growing at a CAGR of 9% for the forecast period of 2024 to 2032. As China continues to prioritize innovation and technological advancement as pillars of its future economic success, there has been a growing recognition of the importance of early STEM education. Parents, educators, and policymakers are placing increasing importance on fostering critical thinking, creativity, and problem-solving skills in children from an early age. STEM toys are viewed as an ideal tool to achieve these educational goals, offering children the opportunity to explore scientific concepts, engineering principles, and technology in a playful, engaging, and hands-on way.
 

Stem Toys Market Share

• The top 7 companies in the home improvement market include Hasbro, K’NEX, LEGO Group, Mattel, Melissa and Doug, ShanTou LianHuan Toys and Crafts, Spin Maste and they collectively held a share of 11% in the market.
   
• Hasbro: Over the years, Hasbro has evolved to become one of the largest companies in the toy industry. This is due to its vast range of products. Moreover, it is expanding to the stem dolls segment via its several educational toy lines. Some of the brands under Play-Doh and NERF which have associated learning components, such as creativity and problem solving, are on the STEM related list. Even though Hasbro's market share in this section is much weaker than that of big players like LEGO, the company’s extensive distribution and strong branding allows it to have a considerable impact in the global educational toy market, which is enabling it to strengthen its position in STEM toys.
   
• K’NEX: K’NEX is known around the world for its construction toys which enable children to build complex structures and models. As K’NEX has achieved significant growth in the STEM toys segment, K’NEX’s focus is on STEM construction doll products that teach engineering skills, spatial reasoning, and creativity to children. K’NEX is popular among parents and teachers looking for constructive educational toys. K’NEX may be a smaller player among household names like LEGO but it enjoys a dominant niche in the stem market, particularly in construction and engineering toys.
   
• LEGO Group: LEGO is one of the top brands in the toy market and perhaps, the most powerful. They are well-known for their construction blocks, LEGO has successfully branched out into STEM-based products including LEGO Mindstorms which gets children interested in coding and robotics as well as LEGO Boost, which enables children to build and program with motors. With the strong educational and international presence, plus its focus on creativity, engineering, and technology, the company has been able to seize great share of the market. The comprehensive product offering and LEGO’s status as a leader in educational play provides the company with unparalleled market share in the STEM segment.

Stem Toys Market Companies

Major players operating in the stem toys industry include:

• BanBao
• Bandai
• Gigotoys
• Goldlok Toys
• Guangdong Loongon
• Guangdong Qman Culture Communication
• Hasbro
• K’NEX
• LEGO Group
• Mattel
• Melissa and Doug
• ShanTou LianHuan Toys and Crafts
• Spin Master
• TAKARA TOMY
• Vtech
   

These prominent companies are proactively involved in strategic endeavors including mergers & acquisitions, facility expansion, and partnerships to diversify their product offerings, expand their customer reach, and solidify their market position. Together, the top five mentioned companies collectively occupied around 10% to 15% of the global market share in 2023. They consistently allocate resources to research & development, enhancing their products and integrating innovative technologies to maintain a competitive edge.
 

Stem Toys Industry News

• In January 2024, Team Genius Squad, a toy brand started by an 11-year-old entrepreneur, announced the launch of its new range of STEM toys. The new product range was made available in Whole Foods market stores.
   
• In January 2024, Spin Master acquired the Melissa & Doug organization, to create extraordinary plays and toys for children.
   
• In November 2023, VTech launched the new infant, toddlers, and pre-school toys such as story time with sunny, style and glam on unicorn, drill, and learn workbench, and race and discover driver.
   
• In December 2022, Funphix Toys, a U.S.-based kids toys brand, updated its website to assist consumers in finding new educational toys. The brand provided a discount of 20% on its building set toys to celebrate the website launch.
   
• In April 2022, LeapFrog Enterprises, Inc., an Emeryville, a US based company offering educational toys, added to its infant and preschool product range. The additions include My pal violet smarty paws, ironing time learning set, my pal scout smarty paws, and learn sweep learning addy.

The stem toys market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Million Units) from 2021 to 2032, for the following segments:

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Market, By Type  

• Science
• Technology
• Engineering
• Mathematics

Market, By Age Group

• 0–3 years
• 3–8 years
• 8–12 years
• 12+ years

Market, By Distribution Channel

• Offline
  • Toy stores/specialty stores
  • Supermarkets and hypermarkets
  • Convenience stores
  • Others (departmental stores., etc.)
• Online

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia   
  • Indonesia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA