Esports Culture in South America
19 November, 2024The South American esports industry generated $168.5 million in revenue, with around 334.8 million players in 2023. Industry experts also project the market will be worth over $240.8 million by the end of 2029, recording a 27.2% compound annual growth rate.
While South America hosted its first video game championship in the 1980s, this multi-million-dollar industry only started growing popular in 2010. This impressive growth is also gradually prompting the development of esports labor management policies, despite minimal support from the government and game developers in the region.
Here’s a preview of the esports culture in South America, traversing from Brazil to Mexico and Argentina.
The growing esports culture in Brazil
Brazil has a solid esports market that’s rapidly growing thanks to several factors. For starters, the overlap between video games and sports culture in the country has helped to push esports to the mainstream market. For instance, popular Brazilian football player Neymar Jr has expanded his influence past the soccer field with his noteworthy streaming deal with Facebook Gaming. Neymar is just one in a long line-up of Brazilian sports stars whose influence stretches beyond their physical ability.
The Brazilian government has also embraced the esports industry and has put several policies to support the market growth. Additionally, Brazil has an impressive population of young and tech-savvy people who enjoy playing competitive games online and offline. That includes everything from playing thrilling games at leading online casinos to competing in offline esports competitions like the Intel Extreme Masters Rio and the Brazil League of Legends annual competition.
Argentina’s growing esports culture
The Argentinian esports market is expected to generate $28.1 million in 2024. The market is also expected to record a 19.8% compound annual growth rate from 2024-2030. This growth is driven by the rising gaming culture in the country and the desire for gamers to showcase their skills in their favorite games. However, the lack of proper regulations in Argentina’s market is affecting industry growth since most non-endemic investors and companies have a culture of waiting for proper regulations before investing.
Mexico’s vibrant esports culture
The esports culture is rapidly gaining momentum in Mexico influenced by the increasing number of dedicated teams, passionate players, and an engaged audience. In 2023, over 12 million Mexicans watched professional esports competitions online and approximately 8 million participated actively as players. That represents a 12.4% user penetration rate.
Mexico’s proximity to the United States also allows for cross-border collaborations and competitions, creating unique dynamics in the country’s esports culture. Additionally, the country has a favorable regulatory landscape, with the government recognizing esports as a mainstream sport and supporting competitions and other events.
Bottom Line
South America is one of the fastest-growing esports markets in the world and it’s expected to record a healthy 10% compound annual growth rate from 2024-2030. Brazil and Mexico in particular feature extensive player bases, with 63% and 78% of their respective populations engaged in gaming. The region is also particularly interested in immersive games like Dota 2 and League of Legends, which lead the esports appeal in South American audiences.
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