Immersive Technology in the Toys Industry

The toy industry can leverage immersive technologies to create innovative and engaging toys that not only entertain but also educate and inspire children. 

Immersive technologies have revolutionised the way children play, providing them with immersive and interactive experiences that blend the real and virtual worlds. VR toys transport children to captivating virtual environments, while AR toys overlay digital elements onto the physical world, creating interactive and engaging play experiences. These immersive technologies have not only enhanced the entertainment value of toys but have also opened up new avenues for interactive learning and imaginative exploration, making them a significant and exciting development in the toys industry.

VR/AR in the Toys Industry


Immersive technologies allow for the creation of interactive and engaging storytelling experiences in the form of VR toys. Children can become active participants in the story, exploring virtual worlds, interacting with characters, and influencing the narrative through their actions.

Interactive Play

AR technology in toys enables children to blend the physical and digital worlds. AR-enabled toys overlay virtual content onto physical objects, creating interactive and dynamic play experiences. Children can engage in virtual games, solve puzzles, or interact with virtual characters within their real-world surroundings.


Immersive technologies have transformed educational toys, making learning more interactive and engaging. VR and AR toys provide children with hands-on experiences, allowing them to explore scientific concepts, historical events, or cultural phenomena through immersive simulations and virtual field trips.

VR Simulations

Immersive technologies offer opportunities for children to conduct virtual experiments and simulations in a safe and controlled environment. VR-based science kits or AR-enabled chemistry sets, for example, allow children to perform virtual experiments, observe reactions, and learn scientific principles.

Physical Interaction

Immersive technologies enable toys that foster physical-digital interaction. For example, toys with sensors or motion tracking can respond to a child’s movements, allowing them to control virtual characters or objects. This integration of physical and digital elements enhances the play experience and encourages active engagement.

Collaborative Play

Immersive technologies facilitate social and collaborative play experiences. Multiplayer VR or AR games and experiences enable children to interact and play together in shared virtual environments. They can collaborate, compete, or explore together, fostering teamwork, communication skills, and socialisation.

Projected Market Value

  • The global market for virtual and augmented reality in the entertainment sector, which includes is expected to reach $45.09 billion by 2025
  • 61% will invest or already invested in VR & AR in 2022
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Immersive Technology in the Toys Industry

Immersive technologies are revolutionising various industries, and the toy industry is no exception. The integration of technologies such as augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) is transforming the way children interact with and experience their toys.

This shift is not only enhancing the playtime experience but also changing the industry’s landscape by bringing innovative products that cater to the evolving preferences and needs of young consumers.

Advancements in AR and VR have paved the way for interactive and engaging toys, allowing children to enter imaginative virtual worlds and connect with their favourite characters in a more immersive manner.

From interactive board games to digital action figures, these emerging technologies give traditional toys a modern twist, offering a blended experience that appeals to today’s tech-savvy generation.

Simultaneously, the inclusion of AI capabilities in toys introduces smarter and more interactive features, such as voice recognition, personalisation, and tailored learning experiences for children.

The toy industry’s future looks promising, with innovative integration of immersive technologies advancing the way children learn and play. As companies continue to adapt to this digital shift, the potential for immersive toys to foster creativity, critical thinking, and intellectual development will undoubtedly play a pivotal role in shaping the industry’s landscape.

Virtual Reality

Virtual reality (VR) has revolutionised the toys industry, offering children a truly immersive and transformative play experience.

VR toys transport children to captivating virtual worlds where their imaginations can run wild. Equipped with VR headsets and accompanying accessories, children can explore fantastical environments, go on thrilling adventures, or engage in simulated activities.

The level of immersion and interactivity provided by VR toys is unparalleled, as children can interact with virtual objects, characters, and environments, giving them a sense of presence and agency.

These toys stimulate multiple senses, including sight and sound, creating a deeply engaging and captivating playtime experience. Whether it’s flying through space, diving underwater, or solving puzzles in a virtual realm, VR toys unlock endless possibilities and fuel children’s creativity, curiosity, and exploration.

Moreover, VR in the toys industry has expanded beyond entertainment, with educational VR experiences allowing children to learn through interactive simulations, virtual field trips, and hands-on experiments.

Virtual reality has truly transformed the way children play and learn, bringing their imaginations to life in ways previously unimaginable.

Augmented Reality

Augmented reality (AR) has made a significant impact on the toys industry, revolutionising the way children interact with their playthings. AR toys blend the real and virtual worlds, enhancing the play experience by overlaying digital content onto physical objects. By using devices such as smartphones or tablets, children can bring their toys to life with interactive and dynamic elements.

With AR toys, children can see virtual characters, objects, or environments integrated into their real-world surroundings, sparking their imagination and creativity. They can engage in interactive storytelling, solve puzzles, or play virtual games, all while physically interacting with their toys.

AR technology adds a new layer of interactivity and engagement, making playtime more immersive and captivating. Additionally, AR toys have educational applications, offering children interactive learning experiences by introducing virtual content that complements their physical toys. Children can explore scientific concepts, historical events, or cultural phenomena through interactive simulations and virtual experiences.

Augmented reality in the toys industry has transformed playtime into a blended and interactive adventure, providing children with endless opportunities for exploration, learning, and imaginative play.

Mixed Reality

Mixed reality (MR) has emerged as a groundbreaking technology in the toys industry, seamlessly merging the physical and virtual worlds to create a truly immersive play experience.

MR toys combine elements of both virtual reality (VR) and augmented reality (AR), enabling children to interact with digital content while maintaining a connection to the real world.

These toys use specialised headsets or glasses that track the user’s movements and overlay virtual objects onto the physical environment. With MR toys, children can see and manipulate virtual objects as if they were part of their real surroundings, blurring the line between imagination and reality. They can build virtual structures, interact with virtual characters, or solve puzzles that blend seamlessly with their physical play environment.

MR toys provide a unique level of engagement, encouraging creativity, problem-solving, and physical interaction. The integration of real-world elements with virtual content opens up a world of possibilities for imaginative play, learning, and social interaction.

Mixed reality in the toys industry offers children a transformative and captivating play experience that combines the best aspects of virtual and augmented reality, fostering innovation and expanding the boundaries of their imagination.

Projection Mapping
Applying Immersive Tech in the Toys Industry

VR Adventure Sets

Companies have developed VR adventure sets that include a VR headset, motion controllers, and interactive accessories. These sets allow children to embark on thrilling virtual adventures, such as exploring a virtual jungle, going on a space mission, or solving mysteries in a virtual world. 

AR Interactive Board Games

AR-enabled board games use a smartphone or tablet to overlay digital elements onto the physical game board. Children can see virtual characters, animations, or interactive elements appear on the board, adding an extra layer of excitement and engagement to the gameplay. 

Mixed Reality Building Sets

MR building sets utilise specialised glasses or headsets to overlay virtual instructions, designs, or interactive elements onto the physical blocks. Children can follow virtual guides, watch their creations come to life with virtual animations, or interact with virtual characters within their real-world construction. 

Benefits & Impact

Enhanced Engagement

Virtual reality (VR), augmented reality (AR), and mixed reality (MR) provide immersive and interactive experiences that capture children’s attention and encourage active participation. These technologies stimulate multiple senses, creating a more engaging and memorable playtime experience. 

Learning through Play

Educational VR, AR, and MR toys offer interactive simulations, virtual field trips, and hands-on experiences that facilitate learning in a fun and engaging manner. By combining digital content with physical objects or environments, immersive technology enables children to explore scientific concepts, historical events, and various subjects in an interactive and immersive way. 

Imaginative Play

VR, AR, and MR toys provide children with virtual worlds, characters, and interactive elements that encourage storytelling, role-playing, and imaginative exploration. Children can create their own narratives, design virtual environments, and interact with virtual objects, fostering their creativity and allowing them to express themselves in unique ways. 

Future Trends and Developments

Immersive technologies in the toy industry offer numerous opportunities for growth, innovation, and creative play. The increasing popularity of devices like VR headsets and AR applications for smartphones opens up new avenues for toy manufacturers to create unique and engaging toys.

The rise of online sales in the toy industry also indicates a shift in consumer preferences, providing opportunities for companies to adopt innovative sales models and deliver interactive or customisable experiences digitally.

Moreover, toy sales in 2020 saw a 16% increase, with the biggest categories being games, puzzles, dolls, action figures, and outdoor play. The growing demand for these types of toys suggests that incorporating immersive technologies can lead to new product lines and revenue streams for the industry.

However, adapting to these changes is not without challenges. Businesses in the toy industry need to shift their models and operations to stay ahead of competitors. This may include investing in infrastructures that rely on sustainable raw materials and developing technologies that ensure compatibility with a wide range of devices and platforms.

As the toy industry continues to evolve, it will be essential for companies to stay informed about emerging trends, understand consumer preferences, and invest in research and development to maintain a competitive edge.

  • Haptic Feedback and Sensory Integration: Future developments in immersive technology may incorporate haptic feedback systems into toys, allowing children to feel physical sensations and textures in virtual environments. This technology could enhance the sense of immersion and realism, enabling children to touch and interact with virtual objects. Additionally, advancements in sensory integration may include olfactory (smell) and gustatory (taste) components, further deepening the sensory experience within virtual and augmented worlds.
  • Gesture Recognition and Natural Interaction: Immersive toys of the future may feature advanced gesture recognition technology, enabling children to interact with virtual objects using natural hand gestures or body movements. This development could eliminate the need for traditional controllers, enhancing the sense of freedom and embodiment within the virtual environment.
  • Spatial Mapping and Environment Interaction: Using depth-sensing cameras or other sensors, toys could detect the surrounding environment and dynamically adjust virtual content accordingly. This development could enable children to create virtual structures that integrate seamlessly with their physical surroundings or facilitate interactive gameplay within their immediate environment.

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