DUBLIN--(BUSINESS WIRE)--The "Latin America Mobile Gaming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The mobile gaming market in this region is expected to grow at 10.5% CAGR rate during the forecast period, 2021-2026.
Moreover, the growing internet penetration rate and smartphone users are fuelling the growth of this market. According to a survey of different industry experts, the mobile gaming market in Brazil and Argentina will be USD 1.48 billion and USD 446 million in 2020.
According to the Ministry of Culture Argentina, 70% of the new users are playing video games, whereas almost 60% of them prefer to play games on smartphones. Moreover, during the COVID 19 pandemic, the number of mobile gamers are also increased due to the lockdown situation. Hence, this considerable demand can create substantial market potential for the major vendors in this market.
According to Brazil's largest games association Abragames, the number of gaming companies in this region doubled from 2014 to 2019. Major vendors in this market are also introducing different mobile games to gain some competitive advantage over others. For instance, Activision, in collaboration with Tencent, launched call of duty mobile in North America, South America, Europe, and other regions that had already completed 250 million downloads all over the world.
Key Market Trends
Growing Number of Smartphone users will drive the demand in the Market
The growing number of smartphone users is influencing the growth of this market. According to the Erricson mobility report 2019, the number of smartphone subscribers in Latin America will be 690 million within 2024. This growing number of smartphone users will surge the growth of mobile games in this region.
The internet penetration rate is also influencing the growth of this market in Brazil and other regions. According to GSMA, the number of mobile internet users will increase by 422 million within 2025, and the CAGR growth rate will be 4% during this forecast period. For instance, Playkids introduces kids' favorite shows, characters, and learning games for the educational industry in the Latin American region.
Additionally, the increasing trend of 5G adoption is also supporting the growth of mobile games in this market. GSMA, Global System for Mobile Communication, expected that Latin America would have a 7% 5G connection within 2025.
Many mobile games such as Pubg mobile, Call of duty mobile require a high-speed internet connection to enjoy the unique gaming experience. Moreover, Mobile gaming hardware also focuses on 5G adoption. For instance, Asus ROG phone, Black Shark 2, changed their equipment to suit the gamer's needs. Hence this 5G adoption will enable the growth of multiplayer mobile games within this region.
Brazil will have a substantial market share in this market
Brazil is one of the promising markets in the Latin American region due to the rapid growth of the urbanized population and the rising demand for mobile games among its young people. According to the 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 in this market.
Additionally, different government initiatives in this region are also supporting the growth of mobile games for this market. For instance, the Brazilian government already invested USD 35.25 million in the production and marketing of Electronics games for this region. Moreover, the events and different festivals are also raising the demand for mobile games within this country. In Brazil's Independent Games (BIG) Festival 2019, 330 companies were registered to attend the show, whereas 120 of those 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, in January 2020, the Ministry of Science, Technology, Innovation, and Communications announced to postpone the 5G spectrum due to the interference issue with the 3.5GHz band and for the recent COVID 19 pandemic. Hence, this can create a market restraint of mobile gaming in this market.
Companies Mentioned
- Tapps Games
- TFG Games
- Dynamic Games (Dynamic Games Entretenimento)
- PlayKids Inc,
- Media Design and Creative Entertainment S.A. de C.V.(Ennui Studio)
- Focka Games
- HyperBeard, Inc
- WASHAWASHA SA DE CV
- Konami Holdings Corporation
- Activision Publishing, Inc.
- Riot Games Inc.
- Abstract Digital Works
- AmnesiaGames, Inc.
- Epic Games, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/happsg
