Radio-controlled toys offered by China makers include flying toys, cars and trucks (including miniature and stunt cars), animals and robots, boats and submarines and hobby models.

Production and exports of flying toys have increased exponentially in the past year.
In 2Q 2003, only Taiwan-invested companies were able to manufacture flying toys. This year, however, of the 1,000 RC toy makers in China, approximately 200 manufacture flying toys, and about 20 among them specialize only in flying toys. More manufacturers continue to join the line.

Hobby models is another product segment witnessing substantial growth. While hobby model factories in China are predominantly Hong Kong- or Taiwan-invested, a few China-invested companies have also ventured into the line. Production is dominated by entry-level ready-to-fly (RTF) and almost-ready-to-fly (ARF) airplanes and helicopters.

Cars and trucks continue to comprise the majority of output and exports of RC toys accounting for 70 percent of total volume output. The majority of suppliers think this product category will drive their growth in the next 12 months.

Boats and submarines, and animals and robots are two other categories that are expected to take off.

Growing faster than the entire toy industry
Production of RC toys in mainland China is growing at an average annual rate of 20 percent, which is double the average increase being witnessed by the overall toy industry.

The total value of toy production in China increased about 12 percent in 2003 to US$13 billion, and is expected to increase 8 percent to US$14.1 billion in 2004. In 2005, the industry will see an estimated 11 percent increase to US$15 billion. On the other hand, production of RC toys grew 23 percent to US$1.3 billion in 2003, is estimated to increase 18 percent to US$1.54 billion by the end of 2004, and 21 percent to US$1.86 billion in 2005.

In exports too, the RC toy industry is experiencing higher growth rates than the overall toy industry. Exports of all toys from China increased about 12 percent to US$11 billion in 2003, and are estimated to grow 11 percent in 2004 to US$12.4 billion, and 9 percent in 2005 to US$13.6 billion. By comparison, RC toy exports grew 18 percent to US$1.1 billion in 2003, and will grow an estimated 15 percent to US$1.2 billion in 2004, and 18 percent to about US$1.5 billion in 2005.

Mainland China currently accounts for about 50 percent of the global production of all RC toys, and 75 percent of all low-end and midrange RC toys.

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All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.