Smart games, AI & robots can revive the toy industry

New toy makers can now deploy emerging technologies. They don't have to worry about legacy investments, since most were importing from China and not manufacturing

The focus on rejuvenating the domestic toy industry has created excitement in a neglected sector.
 

State governments and industry associations are now gearing up for a new phase of growth where domestic toy manufacturing will meet the growing needs of India.
 

There is an advantage in the crisis. New manufacturing units can now deploy emerging technologies. They don’t have to worry about legacy investments, since most were importing from China and not manufacturing.
 

Emerging technologies will have a role to play on two fronts. Firstly, the manufacturing itself can use technologies like Internet of Things and 3D printing to make toys in a more efficient way with scale. In most sectors in India, emerging tech is driving change. Toy makers should follow the same path to build their capabilities. The second is to embed new tech within the toys.

While a lot of gaming happens online and on screens, there is a yearning for physical toys which can be educative and entertaining. In early childcare and education, toys can play a far more important role under the new education policy.
 

Science and art can be taught better with augmented and virtual reality tools. Immersive technologies like holograms can help children play and learn about galaxies and atomic structures of bodies.
 

A recent report by Research and Market is positive on the growth projections. “The 0-3 years segment is estimated to generate over $39 billion by 2025. The APAC region is expected to be the fastest growing region,” the report says. Toys which use new tech will remain popular. “The outdoor and sports segment accounted for the largest revenue in 2019. The growth in RC controlled drones, vehicles, and toys is expected to drive the segment,” says the report.

 

New categories of toys are emerging across the world which Indian players can capitalise on. The focus on science, technology, engineering and maths (STEM) has led to parents preferring smart toys for their children. The “growing popularity of coding robot toys, and rising application of AI in STEM toys will lead to sizable demand in the market,” says Research and Market.
 

The same trend is endorsed by other studies. “The global smart toys market size is expected to grow by $878.60 million during 2020-2024,” according to a report by Technavio Research. “STEM toys are increasingly being adopted in the age groups of 4-8 years and 8 years and above. In the future, jobs in STEM disciplines are expected to experience a sharp increase. Hence, an increasing number of parents are focusing on equipping kids with smart toys and making them future-ready.”
 

Indian parents will be as keen to focus on STEM toys as global parents. A key demand by parents is of screen-free indoor entertainment. Such toys could include mini-3D printers and build-it-yourself robot kits. Some of these are already available in the domestic market but most are manufactured abroad.
 

Hi-tech toys are much of a rage in the Indian market already. A simple search for robotic toys on any e-commerce platform leads to thousands of options that range from Rs 400 onwards.
 

According to Statista, the Indian toy market is estimated at over $38 billion. Its growth will now depend much on how the domestic industry responds to the opportunity created by the restriction on Chinese imports.
 

As they enter the field again, the rules of the game should be decided by new technologies. Using smart tech for smart toys will be the smartest way to revive the sector.