Hybrid real/virtual-world toys key to $135 billion market

Augmented reality and app-integrated toys, and those controlled by a mobile gadget are high-growth segments.

Toys that combine the real and virtual worlds will be a key driver as the global toys and games market expands in the next several years toward a market value exceeding $135 billion by 2020, according to a new report by Global Industry Analysts, Inc.

GIA's Toys and Games: A Global Strategic Business Report said augmented reality toys, app-integrated toys and toys controlled by mobile gadgets are "emerging into the new frontiers of growth," as companies look beyond traditional toys. This is in response to consumers' increasingly digital lifestyle and early exposure to technology.

Toy Car RC and Webkinz are just two examples of real/virtual-world hybrids that evolved from classic favorites, toy cars and stuffed animals. In Toy Car RC children 6 years and above get to drive Wheely, a virtual car, around the real world, be it the various rooms of their house or in the park. Webkinz, meanwhile, are stuffed toy animals with a virtual counterpart in Webkinz World where children play games, complete challenges and decorate rooms with their pets.

Such toys are the result of continuous innovation, which will open more growth opportunities in coming years as manufacturers respond to the need for unique toys that not just grab but sustain children's interest.

GIA's report said Europe is the largest toys and game market worldwide while Latin America is the fastest-growing destination with a CAGR exceeding 9 percent over the 2014-20 analysis period.

See a comparison table of video game suppliers on GlobalSources.com