{"id":771,"date":"2025-10-22T10:33:14","date_gmt":"2025-10-22T02:33:14","guid":{"rendered":"https:\/\/www.stationerytrade.com\/?p=771"},"modified":"2025-10-22T10:33:15","modified_gmt":"2025-10-22T02:33:15","slug":"ai-toys-usher-in-the-industrys-golden-era","status":"publish","type":"post","link":"https:\/\/www.stationerytrade.com\/index.php\/2025\/10\/22\/ai-toys-usher-in-the-industrys-golden-era\/","title":{"rendered":"AI Toys Usher in the Industry\u2019s \u201cGolden Era\u201d"},"content":{"rendered":"\n
In the 2025 consumer market, AI toys are reshaping the industry landscape at an astonishing pace. They have become a new consumption hotspot across all age groups and are ushering in a \u201cgolden era\u201d for the AI toy sector. Products that satisfy children\u2019s dual needs for education and entertainment, emotional companion collectibles favored by Generation Z, and memory-assistant devices serving older adults\u2014powered by multimodal interaction and affective computing\u2014are breaking the traditional boundaries of toy usage and laying a solid product and technology foundation for this new era.<\/p>\n\n\n\n
Since the start of this year, Securities Daily reporters have frequently encountered AI toys in supermarkets, retail outlets and at industry conferences. These devices, resembling \u201ctech sprites,\u201d not only engage children in lively conversations and tell stories vividly, but also possess powerful memory capabilities\u2014accurately remembering a speaker\u2019s voice and preferences and transforming into thoughtful intelligent companions. Today, they have firmly claimed premium shelf space in many toy stores and become the undisputed \u2018new favorites\u2019 among children.<\/p>\n\n\n\n
AI toys not only provide unprecedented novelty for users but also create fresh development opportunities for the toy industry. According to consultancy IMARC, the global AI toy market is projected to grow from USD 18.1 billion in 2024 to USD 60 billion by 2033, representing a compound annual growth rate of roughly 14% from 2024 to 2033. For a sector traditionally viewed as mature, this paints a promising \u2018blue ocean.\u2019<\/p>\n\n\n\n
Market Boom<\/strong><\/strong><\/h2>\n\n\n\n
All-Age Appeal Fuels a New Wave of Consumption For parents born in the mid-1980s and 1990s, AI toys have rightly earned the reputation of \u2018screen-free educational wonders\u2019\u2014they can practice English with children in an engaging way, set puzzles and challenges that encourage logical reasoning, and respond quickly to children’s questions. These toys, which combine technological sophistication with edutainment attributes, help children acquire knowledge in a relaxed atmosphere while quietly opening parents\u2019 wallets. Data from JD.com corroborates this trend: in the first half of 2025, sales of AI toy products surged sixfold quarter-on-quarter, with year-on-year growth exceeding 200%, demonstrating explosive market momentum.<\/p>\n\n\n\n
The audience for AI toys is not limited to children; it also covers today’s main consumption cohort\u2014Generation Z. Office worker Zhang Qingyu (pseudonym) carefully selected an AI toy priced at RMB 499 on an e\u2011commerce platform. Although pricier than ordinary toys, she felt it represented excellent value. \u201cIt feels soft and comfortable to the touch and has a pair of lively, playful eyes as if it could really speak. Sometimes when work stress builds up and I don\u2019t want to talk to people but feel lonely, I\u2019ll chat with it. It tells all kinds of funny jokes to cheer me up; it feels like having a \u2018soulmate\u2019 who understands me,\u201d she said.<\/p>\n\n\n\n
This \u2018warm\u2019 experience allows AI toys to transcend traditional entertainment boundaries. Psychologist Zhang Rongxin told Securities Daily that, under the deep penetration of digital technologies, AI toys not only provide emotional solace for young people but also serve as important carriers of emotional companionship, health management and cognitive maintenance for middle-aged and elderly groups. Their value lies not only in technological innovation but also in human-centered design that reshapes intergenerational relationships\u2014creating solutions that deeply integrate technology and humanity, and bringing more warmth and care into people\u2019s lives.<\/p>\n\n\n\n
At present, AI toys have expanded their market positioning from children to all-age groups, and e-commerce platforms have become important sales channels. During this year\u2019s \u201c618\u201d shopping festival, one AI toy new release sold out rapidly after launch.<\/p>\n\n\n\n
The product\u2019s success stemmed from its precise capture of Generation Z’s companionship needs. It uses multi-affective models to sensitively perceive emotional fluctuations in a user\u2019s tone, employs a \u201cdelayed response that simulates human thinking rhythm\u201d to avoid mechanical impressions, and can remember key information mentioned by users to proactively respond in subsequent interactions.<\/p>\n\n\n\n
Hong Tao, vice chairman of the China Consumer Economics Society and director of the Business Economics Research Institute at Beijing Technology and Business University, told Securities Daily that current AI toy development focuses on core scenarios such as child education and emotional companionship, and is advancing the development of high cost\u2011performance products. Examples include tactile-feedback interactive toys designed for very young children so that they can experience the charm of technology through touch, or companion robots for older adults with health-monitoring functions that keep constant watch over their physical well-being and quickly capture niche markets.<\/p>\n\n\n\n
\u201cAI toys achieve more realistic interactive experiences through advanced technologies such as voice recognition and emotional computing,\u201d Hong said. \u201cAlthough R&D for AI toys has high technical thresholds, once produced at scale the cost advantages become significant, and prospects are very promising.\u201d<\/p>\n\n\n\n
Capital Deployment<\/strong><\/strong><\/h2>\n\n\n\n
Multiple Forces Collaborate to Build an Industry Ecosystem The rise of AI toys relies on improving intelligence modules and falling application costs as technology matures, is propelled by robust market demand, and is also heavily driven by capital. Since the sector emerged in 2024, the number of related enterprises has surged: Tianyancha data show toy-related company registrations climbed year by year over the past five years and peaked in 2024. Analysts at the China Business Industry Research Institute predict China\u2019s AI toy market will expand to RMB 29 billion in 2025 and reach RMB 85 billion by 2030.<\/p>\n\n\n\n
On the capital side, both deal volumes and financing amounts in the AI toy space have grown substantially this year, with nearly a hundred investment institutions entering the market and many startups successfully closing multiple financing rounds.<\/p>\n\n\n\n
Yan Xianbiao, CTO of Shenzhen Liangxu HuanYou Technology Co., Ltd., told reporters that domestic investment and financing activity in the AI toy field has become increasingly active since last year, and several leading companies secured large financings this year\u2014greatly encouraging entrepreneurs to deepen their efforts. Unlike traditional toys, AI toys place greater emphasis on experiential content and scenario development, offering consumers emotional value and continuous services.<\/p>\n\n\n\n
Corporate deployment shows marked cross-industry trends. For example, publicly listed company Outfit7 launched an AI emotional companion robot in late December 2024, entering the AI companionship market from mobile applications and gaming. Its 2025 interim report indicates the company is building an integrated \u201chardware + content + service\u201d ecosystem based on its proprietary emotional companion model, cutting-edge MoE (Mixture of Experts) architecture, embedded software and intelligent hardware. At present, Outfit7\u2019s AI companion robot primarily generates revenue through hardware sales.<\/p>\n\n\n\n
Zhang Cuixia, chief investment advisor at Jufeng Investment, told Securities Daily that, to seize market opportunities, companies beyond device manufacturers and IP operators\u2014including listed firms engaged in localized AI processing and multimodal interaction technology\u2014have announced projects to apply their products to AI toys. Upstream and downstream firms are pushing toward deeper technology, product IPization and emotionalization, industry collaboration and global market expansion to further enhance product appeal.<\/p>\n\n\n\n
International markets are also active. Recently, Bondu, an AI toy startup based in San Francisco, announced the completion of a USD 5.3 million seed round.<\/p>\n\n\n\n
Behind the capital frenzy lies a deep bet on the commercialization of \u201cemotional value.\u201d Traditional toy industry gross margins typically hover between 20% and 30%, but AI toys have achieved value upgrades through technological empowerment; some mid- to high-end AI toy manufacturers report gross margins exceeding 70%.<\/p>\n\n\n\n
On industry competition and supply chain dynamics, the Qianzhan Industry Research Institute\u2019s report \u201cChina Intelligent Toy Industry Market Outlook and Investment Strategy\u201d states that the domestic AI toy track currently has relatively few participants, low industry concentration and a diversified competitive landscape, with technology iteration and IP competition dominating the market.<\/p>\n\n\n\n
Chen Xiaohua, executive director of the Education and Science & Technology Research Institute at the China Mobile Communications Association, told Securities Daily that while the traditional toy market\u2014with its mature supply chain and classic IPs\u2014still holds major market share, it is accelerating its shift toward intelligence. For example, Alpha Group and other firms are integrating AI technology into their own IP products. AI toy companies are speeding up product R&D and market expansion, moving beyond basic entertainment functions to emphasize emotional companionship and personalized growth advising, and exploring viable \u201chardware + subscription\u201d service models to extend product lifecycle value.<\/p>\n\n\n\n
Breaking Homogeneity to Find Upgrade Paths AI toys have expanded into multiple product categories\u2014some focusing on IP operations and emotional services, others precisely targeting educational scenarios. This diversified exploration is driving the industry toward higher value\u2011added segments. Nevertheless, the sector also faces a homogeneity dilemma: product designs are converging, many AI features depend on the same service providers, and interaction modalities often lack natural fluidity.<\/p>\n\n\n\n
Technology is the core foundation for AI toys, and competitiveness largely depends on the ability to achieve human\u2011like natural conversation and accurately interpret language and emotions\u2014capabilities that heavily rely on large language models and interaction technologies. Securities Daily\u2019s reporting found that although most AI toys claim to be equipped with advanced large models capable of fluent dialogue, actual question-and-answer interactions are often formulaic, lack emotional warmth, and generally fall short in continuous learning and personalization capabilities.<\/p>\n\n\n\n
Huadong, an AI engineer at Dong Qipeng Electronics Technology Co., Ltd., told reporters that connecting traditional toys to large AI models is just a baseline. On the software side, products need visual and video recognition, voiceprint recognition, long-term memory functions (able to remember users\u2019 statements) and a repertoire of expressions for feedback; on the hardware side, they require eye-contact interactions, radar perception, greeting mechanisms, touch points and tactile feedback. All these AI features are crucial. Future competition will not be just a battle of hardware versus software but a contest in social AI\u2014where AI toys integrate speech recognition, computer vision and haptic feedback to achieve environmental awareness and natural interaction.<\/p>\n\n\n\n
Beyond technological hurdles, AI toys also face a trust crisis concerning information security and privacy protection. These toys often collect children\u2019s voiceprints, facial images, behavior trajectories, and even household environmental data through cameras, microphones and other sensors. The covert collection and potential misuse of such data urgently require strict privacy safeguards. Moreover, excessive reliance on AI toys by minors may impair social skills and emotional cognition development\u2014reducing real interpersonal interaction, creating difficulties adapting to delayed human feedback, or being misled by anthropomorphized emotional expressions.<\/p>\n\n\n\n
\u201cSolving the homogeneity problem in AI toys hinges on innovation,\u201d said Fu Yifu, a special researcher at Suzhou Commercial Bank. He suggested that companies increase R&D investment, deeply explore latent user needs and develop products with unique functions and characteristics\u2014such as AI toys tailored to specific age groups or scenarios. At the same time, attention must be paid to user\u2011experience design to improve ease of use and stability, reducing lag and malfunctions. Strengthening brand building to craft distinct brand images and values is also necessary; brand differentiation can enhance a product\u2019s core competitiveness. In short, AI toys\u2019 core competitive advantages should concentrate on technological innovation, content innovation, user experience and brand value to meet consumer demand for high\u2011quality, personalized products.<\/p>\n\n\n\n
The rise of AI toys is a model of deep integration between technology and the humanities and a natural outcome of industrial upgrading. From explosive market growth and all\u2011age user coverage to capital market enthusiasm and continuous technological breakthroughs, AI toys are reshaping the toy industry landscape with unstoppable momentum and ushering in the industry\u2019s \u201cgolden era.\u201d They are not only a new \u2018blue ocean\u2019 for the toy sector but also a social pressure\u2011release valve for emotional needs. This golden era will make AI toys a bridge connecting technology and humanity, commerce and emotions, and will bring more surprises to people\u2019s lives.<\/p>\n\n\n\n
Declaration: This article comes from Securities Daily.If copyright issues are involved, please contact us to delete.<\/p>\n\n\n\n<\/figure>\n","protected":false},"excerpt":{"rendered":"
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