The mobile games market in Latin America is vast and growing, generating $3.5 billion in revenues via consumer spending in 2021, according to Newzoo’s new “Global Games Market Report”. In fact, mobile accounts for 48% of 2021’s games market revenues in the region, and 58% of Latin America’s online population - or 273.4 million people - play mobile games.
Brazil is Latin America’s largest market by both mobile game players and revenue. Its 88.4 million players will help Brazil’s mobile game market generate over $1.0 billion this year. In terms of mobile game revenues, Brazil’s lead is followed by Mexico (which will generate just under $900 million), Argentina, and Colombia. Mobile is also Latin America’s fastest-growing revenue segment, hitting $5.1 billion in 2024.
One major contributing factor to mobile’s impressive player, revenue, and growth figures in the region is the segment’s low barrier to entry, as mobile is becoming even more accessible across Latin America. By the end of 2021, there will be over 351.9 million smartphone users in the region. That already impressive number will cross 400 million in 2023. Owing to Latin America’s stringent imports legislation, console and gaming-PC prices are among the highest in the world, making mobile the most viable option for many gamers in Latin America.
What is more, internet access across the region is currently going through a process of democratization. Internet penetration is on the rise across Brazil, Mexico, Argentina, Colombia, and Chile, connecting and empowering residents and making online gaming viable. Internet availability will be further expanded with 5G implementation. In Latin America, 5G rollout will be gradual, but Newzoo expects most of the region to have access to 5G in the next five years.
By the end of this year, there will be just under 20 million active 5G-ready smartphones in Latin America—a number that will grow fivefold by the end of 2023. As each country within Latin America has its own political, financial, regulatory, and even topographical challenges, 5G will penetrate the region’s markets at different paces.
Improving internet, 5G, and infrastructure will have a knock-on effect on Latin America’s mobile games market, impacting its individual countries differently depending on their size and current infrastructure. For smaller markets such as Colombia, Chile, and Peru, these improvements will spark further growth in the online population and smartphone users, also creating more opportunities for smaller indie developers. In bigger markets such as Brazil, Mexico, and Argentina, 5G will lead to: higher-fidelity mobile games, better multiplayer experiences, and improvements in the competitive aspects of mobile e-sports.