The American toy industry is worth more than $22 billion annually, and virtually every sub-segment is ripe for IoT innovation. The demand for smart toys is there, thanks to a combination of tech savvy households, Hollywood creations, youth consumer trends, and the prevalence of smart appliances and devices (Amazon Echo). The current generation of children is accustomed to—and expects—‘intelligent’ playthings. This shift in expectations has caused a steep decline in some traditional toys (such as model trains), and forced others (such as dolls) to adapt. The good news is this paradigm shift isn’t simply tech for tech’s sake—smart toys offer significant benefits beyond being, well, toys. And that can enhance your bottom line.