AI toys spark boom in China’s toy market

The Chinese toy market is undergoing a major transformation fueled by the explosive growth of AI-powered companions and educational gadgets that can chat and learn with children.

The sector is rapidly expanding with new data pointing to a vast high-growth industry.

A recent report by the Shenzhen Toy Industry Association and JD.com projects that the AI toy market in China will surpass $14 billion by 2030. This growth is happening faster than almost any other consumer AI sector.

Industry experts note that this rapid adoption is built on a long-standing Chinese market for educational electronics. Rui Ma, a China tech analyst at AlphaWatch.AI, stated:

“AI devices for children make particular sense in China, where there is already a well-established market for kid-focused educational electronics.

The development of large AI models, such as DeepSeek, is credited with fuelling the current surge. The number of companies entering the space has exploded, with reports indicating over 1,500 AI toy companies operating in China as of October 2025.

Sales of interactive plush toys and learning machines have become a major driver. One popular product, BubblePal, has seen a major sales increase.

Gao Feng, BubblePal’s founder, noted the rapid acceleration, saying that in 2024, “the average monthly sales were only a few thousand units. By January this year, monthly sales had exceeded 20,000 units.”

While the demand is strong, parents are reporting early mixed experiences with the current technology.

However, the market is expected to continue its explosive growth as companies focus on improving AI’s emotional resonance and educational value.