AI is transforming the consumer market at an unprecedented pace. Statista predicts that the global AI industry will exceed $1.8 trillion by 2030. With the rise of large-scale models like ChatGPT and DeepSeek , AI is shifting from algorithmic concepts to real-world applications. Industries such as consumer electronics, education, toys, and smart home devices are experiencing explosive growth in AI-powered products.
Compared to traditional smart toys, AI-enhanced products are not merely "functional upgrades"—they deliver new experiences in education, companionship, and emotional value.
This article provides a comprehensive overview of the AI product boom—from market trends and popular products to personalized customization—and explores the role of Cheertone, helping readers better understand how AI is driving transformation in the toy and consumer electronics industries.
In the past , AI primarily remained at the "algorithm" and "scientific research" stage, focusing on areas like speech recognition, image recognition, and large-scale model training. From 2022 to 2024, products like ChatGPT, DeepSeek, and Doubao reached the masses, transforming AI from a "concept" into "consumable applications." An increasing number of AI capabilities were integrated into consumer products in education, healthcare, finance, retail, and toys through API/SDK , spawning a vast array of innovative products through the " AI big model + X product " model.
These expanding product categories include:
In its sub-sectors, data from MarketsandMarkets shows that the size of the smart AI toy market is expected to reach US$42.15 billion in 2025 and will grow to US$224.75 billion by 2034 , with an average annual compound growth rate of 20.48%. AI products for children's education and emotional companionship have become the main growth drivers.
Image Source: Market Research Future
Factors driving this growth include:
Parents' emphasis on education: With the upgrading of educational concepts, parents pay more attention to AI toys that can provide personalized learning experiences to help children develop good learning habits, especially STEAM (science, technology, engineering, art and mathematics) educational toys.
Young consumers' demand for companionship and emotional interaction: With the increase in urbanized living and single-person households, the demand for companionship is not only physical, but also emotional satisfaction.
Declining technology costs and open-sourcing of large models: The low cost and open source nature of models like DeepSeek and Tongyi Qianwen have lowered the barrier to entry for AI toy manufacturers. Multimodal models integrating speech, vision, and tactile sensors are proliferating. Lightweight AI chips are also beginning to support edge computing for smaller hardware.
Overall, AI products are moving from "functionality" to "emotional value" and "educational value", and will become the strongest growth engine for the consumer electronics and toy industries in the next 5-10 years.
Currently, popular AI products are emerging in an endless stream, primarily in three key areas: companionship, education, and trendy IP. These products are more than just "animal toys"; they offer personalized learning and entertainment through technologies like voice recognition, emotion sensing, and learning algorithms.
Emotional companionship is the most popular area for AI toys, focusing on "healing" and "emotional interaction." These toys emphasize emotion recognition and companionship, helping users establish emotional connections through anthropomorphic interactions.
Such as Ropet Ai pet robot (simulated pet experience), Poketomo pocket smart partner ( portable AI emotional companionship experience ) , and TCL Ai Me smart companion robot ( the world's first split-type AI companion robot).
Through voice recognition, touch sensing and facial expression feedback, they meet the needs of different groups of people for companionship and emotional support, covering children, young people living alone and elderly users.
Image: Ropet Ai - Source: Ropet Official Website
Image: Poketomo Pocket Smart Partner - Source: Sharp Official Website
Image: TCL Ai Me smart companion robot - Source: TCL Official Website
Numerous startups are rapidly entering this space, and even Sony continues to enhance the AI interaction capabilities of its Aibo robot dog. Will companion AI become a standard feature for urban youth and children, just like mobile phones?
AI educational toys are becoming a new choice for parents, emphasizing personalized learning and interactive experiences. These products combine AI technology's personalized education and emotional interaction capabilities. Emotion detection capabilities allow for interaction based on a child's emotional state, enabling "learning through play" and serving as personalized educational companions.
Products include the Roybi Robot (the world's first AI language education robot), the Dr. Luka AI Learning Camera (which uses photos to learn about everything) , the Fisher-Price Interactive Learning Robot (which combines early childhood education with fun), and the Ling All-in-One Learning Partner for Children (a pocket-sized robot for learning and emotional support). These products cover a variety of scenarios, including language learning, STEAM education, and early childhood education, providing tailored learning content for children.
International giants such as Lego and VTech have also been actively deploying in this field.
The integration of AI with trendy toys and virtual idols is becoming a hot topic, giving rise to the new category of "smart trendy toys." Examples include Ultraman AI interactive toys , Fuzozo virtual idol derivative toys , Alpha AI Smart toys (Pleasant Goat and Big Big Wolf), and Robosen MINI ROBOT Series (licensed from Disney and Pixar IP).
This type of product not only quickly opens up the market with the help of the fan effect of the IP itself, but also enhances interactivity and immersion through AI empowerment, enhances social communication capabilities, and meets the personalization and collection needs of young consumers.
Many major IP manufacturers, such as Mattel, are also entering the AI trendy toy space. Although specific products have not been fully disclosed, their ambitions are clear. From Disney and Marvel to Pokémon, nearly all major IPs are exploring AI toy formats. Will top trendy toys like Labubu integrate with AI in the future? This is something worth looking forward to.
To better understand the value of AI toys, we've selected two of the above products to analyze their specific functions and how they operate.
If you imagine a " pet that you carry with you ," Poketomo is probably the closest answer.
Launched by Sharp, this pocket-sized smart toy targets all age groups, addressing the modern need for anytime, anywhere emotional companionship. Simply put, it's an AI electronic pet that fits in your pocket.
Image: Poketomo Pocket Smart Partner - Source: Sharp Global
Its biggest highlights are portability and personified interaction. Inspired by meerkats, the design is palm-sized and boasts a built-in battery for extended outdoor use. As the first product to be released using Sharp's independently developed CE-LLM model , Poketomo features personalized voice conversation capabilities, initiating interactions and expressing emotions through the changing LED light ring on its abdomen.
Even when away from the user, Poketomo can be used for text chats via the mobile app. Despite its advanced conversational AI, Poketomo deliberately downplays its utility. Sharp clarified at the product launch that it is not a voice assistant, but rather a companion focused on emotional support. It records user interactions, including frequented locations and conversation topics, and continuously learns to better understand user preferences. Even if voice communication isn't convenient for users, text chats are still possible via the mobile app.
This design approach reflects Sharp's unique insight into people's emotional needs: in a fast-paced world, people need a portable companion that provides emotional value without social pressure. Poketomo does not aim to solve specific problems but focuses on offering emotional comfort, setting it apart from other AI products.
Unlike Poketomo's "companionship" focus, Dr. Look AI Learning Camera enters the market from an educational angle. Designed for children aged 3 and above during their critical enlightenment period, its core innovation combines AI with photo recognition—"point, shoot, and learn."
Image: Dr. Look AI Camera - Source: Dr. Look Official Website
Features:
It's more like an always-on teacher , answering questions instantly. While reducing the pressure on parents to help with homework, it empowers children to be more proactive in their learning, rather than passively accepting it. Its combination of entertainment and education aligns with the current trend of "edutainment."
The emergence of these products is redefining the boundaries between "toys" and "learning tools." They allow children to combine toy time with learning time, and parents are more willing to pay for such products.
In summary, although these two types of products have different positioning, they both rely on a solid " iron triangle ":
However, integrating these three pillars is a significant challenge for any company.
2025 marks the first year of AI products. Faced with explosively growing market demand, how can companies participate in this blue ocean market? From initial idea to product launch, strong capabilities are needed to realize these innovations. This is where professional manufacturers like Cheertone come in.
Cheertone, a global manufacturer of smart children's toys, boasts over 20 years of experience, partnering with numerous supermarkets and brands across Europe, North America, and Asia. We consistently adhere to a R&D philosophy that integrates entertainment and education (STEAM), emphasizing the value of "learning through play." With an in-house R&D team, we offer integrated hardware and software solutions and end-to-end ODM/OEM services from 0 to 1.
Customized R&D capabilities
Strict quality control and certification support
Rapid iteration and market response
Unlike traditional foundry manufacturing, we integrate R&D and manufacturing. We offer a complete supply chain, from chip-level design and software development to injection molding and assembly. This vertical integration model has shortened product development cycles by 40% and reduced costs by over 25%.
"Most customers initially come to us for cost advantages, but they ultimately choose long-term partnerships because we can provide technical solutions that exceed their expectations."
We have always been paying attention to development trends in the field and invest 10% -15% of our operating income in research and development every year. In the past two years, we have focused particularly on AI voice interaction, affective computing, and machine learning.
This technological foresight enables us to help customers reduce the risk of innovation. While other manufacturers are still catching up with the previous generation of technology, Cheertone has already started planning the next generation product roadmap for customers.
Amid current trends, we have encountered many ideas for custom AI products this year. We are currently developing a high-end smart emotional companion doll for children for a client in the Middle East. From concept design to engineering prototype, our two parties have mutually complementary strengths in many areas. We focus on hardware solution design and optimization, as well as the implementation of AI interaction features. Based on our deep understanding of the local market and culture, we provide guidance on user needs, language habits, and content localization.
The project is currently in the joint development stage. Both parties maintain close communication and are constantly adjusting and optimizing details to prepare for subsequent stages.
AI technology is reshaping the global toy and consumer electronics industries. With the influx of more brands and companies, more AI products will be launched. It's foreseeable that AI toys will become an everyday choice for more families and a key driver of continued growth for the entire industry.
How can you seize this opportunity? It belongs to every company with vision, high-quality IP, or a strong brand. You don't need to build an AI army alone--you just need a trustworthy partner like Cheertone with full-stack capabilities.
We welcome your ideas. Let's explore and create new AI products together.
