Summary

South America has growing number of gamers in all categories, which are as many potential prospects for the esports industry. More consumers are gaming in South America, and with this growth in gaming, there is also an increase in revenue. Among the countries with the largest market shares in South America are Brazil, followed by Argentina and Colombia. In these countries traditionally dominated by soccer, e-sports are the second most popular sport. In addition, unlike other emerging markets, South America is also experiencing growth in console sales in recent years. Additionally mobile and PC games are growing as the demand is constantly increasing. This shows the potential of this continent in terms of esport competitions. With more than 530 Million internet users in 2021, South America is the fourth largest regional online markets in terms of users worldwide. South American eSports fans are just as passionate as those who follow traditional sports. The area's mobile eSports sector is incredibly robust since it grew alongside the region's fiercely competitive mobile game business. It's a key factor in the growth of mobile game income. Competitive video games like Mobile Legends: Bang Bang, Garena Free Fire, and Arena of Valor are especially popular in South America. In terms of eSports, these games are well-known for both playing and watching.

According to the research report, “South America Esports Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add USD 111.18 Million market size from 2023 to 2028. One of the causes that will drive the growth of esports in South America has to do with the fact that strong teams have emerged in the region over the last few years, in games like Dota 2, League of Legends, and Counter-Strike: Global Offensive (CS:GO). When people can cheer for a team that’s actually winning on an international level, news spread quickly and the regional fan bases grow faster. This in turn, attracts sponsors and investors, which strengthens the teams and creates an entire ecosystem. Right now, things are going so well in South America that ESL One, one of the largest tournament organizers in esports, had planned to bring a CS: GO Major with a prize pool of 2 Million dollars to Brazil. Unfortunately, due to the on-going global crisis, the event had to be cancelled. But the gesture itself proves that esports in South America is on the rise and offers huge opportunities. Millions of people in audiences and millions of dollars in revenue appear in many articles and news. Brands all over the world are acknowledging this scenery and join to reach that specific and golden target.

According to the report, the South America market is segmented into various parts including sponsorship, media rights, merchandise & tickets, publisher fees, digital and streaming. Among them, sponsorship segment leads the market with more than 54% share in 2022 whereas streaming segment is growing with highest CAGR compared to other revenue streams. Given the importance of Twitch for the gaming community, the number of Twitch app downloads in South American countries can give another interesting angle to understand the popularity of esports across the region. In this respect, Brazil reported the highest figures, with nearly 440 thousand in April 2022. On the other hand, the companies such as Cooler Master and Logitech have collaborated with the sports organizations of Argentina. In 2021, professional gaming is also gaining momentum in South America. Brazil, for instance, had over 1,200 active esports competition players in 2021. Meanwhile, the 2022 closing season of the Liga Southoamérica (LLA) - the main tournament of League of Legends among Spanish-speaking countries in the Americas recorded more than 94 thousand peak viewers. Based on the obtained data, the interest in esports in Brazil was strong within the gaming community in the analytical year, with six in ten players following or watching such competitions. Meanwhile, esports ranked among the most talked about sporting events in Brazil in 2021, receiving the similar score as the English Premier League. Audience in South America will reach up to 180 Million people by 2028.

South America does have esports teams and tournaments; however they don’t seem to gain as much attention as tournaments in other regions do. Games like League of Legends have their own league specific to the region – it’s called the South American League or LLA. The LLA managed to achieve new records – a larger audience than ever before, and a much higher level of competitive play. At the moment, South American pro gaming leagues lag behind others. In the last two years, in particular, more and more brands have taken an interest in sponsoring esports events. In South America, 5G rollout will be gradual. As each country within South 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 South 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.

National tournaments are also on the rise: the Brazilian League of Legends Championship (CBLoL) is one of the largest in the world and the title of the competition, which also defines who will represent the country in the World of League of Legends. The tournament attracts thousands of competitors attending each of the events and millions of fans also through official broadcasts. In fact, one of the most prominent Brazilian teams is sponsored by Flamengo and more and more soccer teams have turned to digital sports with their own teams. As it could not be otherwise, the national championship of Free Fire, one of the most popular mobile games in the country and in the world, has also gained more and more prominence and should grow more in the coming years. Gabriel "FalleN" Toledo is the highest earning Brazilian player with $1,158,490.03 USD in prize money won overall, with $1,150,586.54 USD or 99.32% won from playing in Counter-Strike: Global Offensive tournaments. Javier "Janoz CFI" Munoz is the highest earning Columbian player with $44,474.62 USD in prize money won overall, with $13,500.00 USD or 30.35% won from playing in FIFA 17 tournaments. Also, Free fire esport was the highest awarding game. On the other hand, Thiago "k1nG" Bautista Lapp is the highest earning Argentine player with $1,119,650.00 USD in prize money won overall, with $1,119,500.00 USD or 99.99% won from playing in Fortnite tournaments.

The growth of esports in South America is driven by brands. According to our findings, Pepsi has been the major company to join the League of Legends South American Leaguea region, which is consolidating with the professionalization of the industry and which is blurring the lines between video games, sports, music and popular culture. The soft drink brand found a great opportunity in the growing consumption of video games in the South American region and the impulse of the celebration of Worlds 2022 to associate with the South American League of League of Legends. Another beverage giant that has become associated with the world of esports it was Coca-Cola, which agreed to a multi-year partnership with Riot Games, focusing on mobile games League of Legends Wild Rift and Wild Rift Esports. In the same way, their alliance aims to improve the experience of fans. At the most recent Free Fire World Series 2021 Singapore, three teams from South America competed in the final. Both teams from Brazil, LOUD and Fluxo, finished in the top four; second and fourth, respectively.

Leading Esport Teams in South America: Kaos Latin Gamers, Yon Gaming, Isurus Gaming, Furious Gaming, Rebirth Esports

Tournaments & Leagues in South America: League of Legends, Dota 2, Valorant, Free Fire , PUBG Mobile, 2022 World Championship, FFL Latinoamerica Closing 2022, The International 2022, PUBG Mobile Pro League Americas Championship Fall 2022, Red Bull Home Ground #3 EMEA Qualifier.

Esports Organisations in South America: Isurus, Flamengo Esports, Furia Esports, Imperial Esports, Loud esports, Made in Brazil, PaiN Gaming, Centro Atlético Fénix, Peñarol, Racing Club de Montevideo, Infamous Gaming

Major Sponsor Industries in South America: Coca-Cola, Red Bull, Gillette, Burger King, Motorola, Samsung, Claro, Movistar, Axe, Mastercard

Esport Start-ups in South America: Champions Round, TinkerList,tv, GGs.io are some of the top start-ups across the South America region.

Major Companies present in the market:
Activision Blizzard Inc, Intel Corporation, NVIDIA Corporation, Electronic Arts Inc, Wargaming Public, Rovio Entertainment, alphabet Inc (YouTube), Twitch Interactive, Inc., Facebook, Inc, Beyond The Summit, Riot Games, Inc, Sony Group Corporation, HTC Corporation, Gfinity plc, Nintendo

Considered in this report
• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• South America esport market with its value and forecast along with its segments
• Country-wise esport market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Brazil
• Argentina
• Colombia

By Revenue Streams:
• Sponsorship
• Media Rights
• Merchandise & Tickets
• Publisher Fees
• Digital
• Streaming

By Device Type:
• Mobile (Smartphone, Tablet)
• PC (Laptop, Desktop)
• Gaming Device (Console, Handheld Devices)
• Other (VR, Smart TV, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the esport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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