Market Trends of Latin America Mobile Gaming Industry
This section covers the major market trends shaping the Latin America Mobile Gaming Market according to our research experts:
Growing Number of Smartphone users will drive the demand in the Market
- Based on the Ericsson Mobility Report, by the end of this year, 72% of all regional subscriptions will be on 4G, the leading radio access technology. With more than 56 million new 4G subscriptions added in the current year, 4G subscription growth is robust. However, as people switch to 4G and 5G, 3G subscriptions are falling. In the next two years, several service providers will discontinue their 3G networks to allow for the repurposing of radio spectrum for 4G deployments.
- More than ten countries now provide commercial 5G. To encourage 5G subscription acceptance, service providers are speeding up 5G deployments in the mid-band (3.5 GHz) and low-band. By the end of this year, around 19 million 5G subscribers are anticipated, and a more significant uptake is expected next year.
- The affordability of data plans and the cheapest Internet-enabled handsets across Latin America is influencing the growth of this market in Brazil and other regions. Mobile subscriptions will increase by a CAGR of 2%, and smartphone subscriptions will grow by 3%.
- Additionally, the increasing trend of 5G adoption also supports the growth of mobile games in this market. Global System for Mobile Communications Association (GSMA) expected Latin America to have a 7% 5G connection within the forecast period. Many mobile games, such as Pubg mobile, and Call of duty mobile, require a high-speed internet connection to enjoy a unique gaming experience. Moreover, mobile gaming hardware also focuses on 5G adoption. For instance, the Asus ROG phone, Black Shark 2, changed its equipment to suit the gamer's needs. Hence this 5G adoption will enable the growth of multiplayer mobile games within this region.
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Brazil will have the substantial market share for this market
- Brazil is one of the promising markets in the Latin American region due to its rapid growth of urbanized population and the rising demand for mobile games among its young people. According to the Organisation for Economic Co-operation and Development (OECD) data, 21.3% of the total population represents the young population in Brazil, which is higher than in the United States, Canada, and the United Kingdom. Hence this rapidly growing young population will create substantial market potential for the significant vendors of this market.
- Different government initiatives in this region also support the growth of mobile games for this market. For instance, the Brazilian government has already invested USD 35.25 million to produce and market electronic games for this region. Moreover, the events and different festivals are raising the demand for mobile games in this country. In Brazil's Independent Games (BIG) festival held the previous year, 330 companies were registered to attend the show, whereas 120 came from abroad.
- Furthermore, during the past two years, the gaming population of Brazil is increased by 28% due to the massive growth of smartphone users and increased Internet penetration rates for this country. However, the previous year's Ministry of Science, Technology, Innovation, and Communications announced postponing the 5G spectrum due to the interference issue with the 3.5GHz band and the recent COVID-19 pandemic. Hence this can create a market restraint on mobile gaming in this market.
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