An Emerging Digital Market In Latin America16 June, 2020
The world has been through a bit of a bad spell as the coronavirus pandemic has led to disruptions everywhere, Latin America is still going through a very difficult time as many countries are still dealing with the impact of the coronavirus, but where many have struggled there is also some good news in an unlikely place as an emerging market continues to strengthen despite the ongoing issues.
This emerging growth has been seen within the digital market, although Mexico is the biggest and fastest growing, the same change has been seen across all of Latin America, seeing year on year growth and expected to a revenue of almost 6.29 billion USD by 2023 – and the growth is expected across multiple platforms. The next generation of consoles may be the primary factor here as it is expected that these consoles may lead the growth in this digital market, although they’re expected to come in the holiday season of this year which is opening a gap for another market, the mobile market.
The introduction of 5G will help massively here, although mobile devices becoming more widespread has definitely led to an increase in the market, and the mobile gaming segment here is expected to grow alongside the console side too – whilst it is expected that consoles may edge out at first, there’s also the possibility the mobile segment will match it or surpass it depending on how quickly 5G can be adopted and implemented too.
The center of this growth may be similar to what has been seen in other regions with mobile gambling at the heart of it – and there may be the necessity for regulation. This has been seen within the, the introduction of an initiative called Gamstop would reduce the participation ability for problem gamers as a self-inclusion alternative, it had recently be made mandatory for operators to register or risk losing their gaming licenses – these ones aren’t UK registered for Max however and provide an alternative space for players, and this is something that may be needed in Latin America to keep the growth under control and prevent any wider scale issues from popping up.
The biggest challenge to overcome currently is that the infrastructure isn’t in place to support this growth – the market is filled with low budget games with advertising restrictions, for the market to continue to succeed as it has done elsewhere this is an area that would need to be improved upon in order to ensure player safety and satisfaction. There’s also the factor of connectivity to overcome too, some parts of Latin America such as Costa Rica still have poor levels of connectivity, and whilst the previously mentioned 5G may be of huge benefit here there may be some restrictions to having the infrastructure in place – if these factors can be overcome, the market will continue to emerge and grow within the region, but even with these restrictions the growth is impressive, especially given the current global climate.
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