Brazilian mobile market to jump to $5.2bn gross revenue by 2027 | Pocket

The Growing Brazilian Mobile Market

The mobile market in Brazil is projected to experience exponential growth in the coming years. According to mobile analytics firm Sensor Tower’s latest mobile market forecast, the industry’s gross revenue is expected to increase from $2.8 billion to $.25 billion by 2027. Additionally, the number of downloads is predicted to reach 39.1 billion in the same year.

Sensor Tower’s estimates suggest that Brazil will surpass Australia, the Middle East, and Africa to become the 11th largest mobile market in terms of revenue and the second largest in terms of downloads.

Rapid Revenue Growth

In their report, Sensor Tower highlights Brazil’s remarkable revenue growth. They note that in 2022, Brazil experienced a surge in revenue with a growth rate of 33%, reaching $1.3 billion. This growth can be attributed to increased smartphone penetration and improved internet connectivity in the country. While mobile gaming’s share of revenue has declined slightly, it still remains the largest source of mobile revenue in Brazil.

Implications for the Market

The omission of third-party storefronts in Sensor Tower’s analysis may present limitations, particularly in markets like China where Google Play is unavailable. However, for markets like the US where the iOS App Store and Google Play dominate, Brazil could emerge as a significant player.

Chinese companies such as Tencent and NetEase have shown interest in the Brazilian market, choosing it as a launch destination for their new games. For instance, Tencent’s Honor of Kings, the world’s largest MOBA, experienced success in Brazil after encountering licensing issues in the domestic Chinese market. The Brazilian market offers advantages such as limited political baggage and a younger demographic, making it an attractive target for Chinese game companies.

Brazil itself has a thriving mobile game industry, with 38% of all titles developed within the country specifically for mobile platforms. The country also hosts notable events such as the BIG Games Festival, which continues to draw significant interest from both domestic and international audiences.

The decline of the US mobile market revenue for three consecutive years, as reported by Sensor Tower, contributes to Brazil’s rising prominence. However, Africa continues to struggle to reach $1 billion in gross revenue. Nevertheless, increased attention on the African market could result in initiatives to improve mobile and internet penetration, fostering wider adoption of mobile games.

The Shifting Market Landscape

Bringing together the emergence of Brazil, the decline of the US, and the interest from China, it is clear that significant shifts are expected in the mobile gaming market rankings. Publishers and developers may need to reassess their assumptions as Brazil has the potential to become an increasingly important emerging market, alongside MENA (Middle East and North Africa) and SEA (Southeast Asia).

Note: Based on the list of top 50 mobile game makers in 2022, Tencent and NetEase were included. Stay tuned for the updated list for 2023.