Latin America Subscription and Billing Management Market - Growth, Trends, COVID -19 Impact, Forecasts (2022 - 2027)

Latin America Subscription and Billing Management Market - Growth, Trends, COVID -19 Impact, Forecasts (2022 - 2027)

Latin America Subscription and Billing Management Market is expected to register at a CAGR of 4.2% during the forecast period (2022 - 2027). The increasing adoption of digitization and increasing demand for flexibility has given rise to subscription-based businesseas across sectors.

Key Highlights
  • Automation and standardization of the subscription billing process are becoming necessary due to the substantial growth of the customer base. This is in addition to organizations' growing emphasis on maximizing client retention through improved customer experience. As a result, industry usage of subscription billing management solutions is likely to rise during the projection period.
  • Subscription billing solutions typically include tracking capabilities that allow businesses to understand the behavior of customers better and, as a result, boost engagement, customer happiness, and retention. When companies have access to a large amount of consumer data, they may segment clients based on their preferences and decide the best ways to engage each group. This characteristic is expected to drive the growth of the Subscription and Billing Management Market.
  • According to Digital TV Research, in September 2021, it is stated that, by 2026, the Latin America region will have 131 million SVOD subscriptions. This represents a huge increase over the 76 million expected for Latin America region by the end of 2021.
  • Furthermore, Netflix will remain the dominant SVOD operator; Disney, despite a relatively late start, will make great strides in the market in the following years. By 2026, Netflix will have 48.4 million members in Latin America, with Disney+ coming in second with 32.5 million.
  • COVID-19 has had a favorable impact on market growth. Companies of all sizes are rethinking their business strategies for 2021 and beyond. These businesses are implementing subscription management tools with cross-channel visibility to drive normality and make things easier by matching their metrics.
Key Market TrendsSignificant Adoption Is Expected in the Media and Entertainment Industry
  • The media and entertainment sector is a prime example of rapid digital transformation, constantly innovating technology and developing new ways to generate and distribute subscription-based digital products. Advertisers, publishers, broadcasters, and others are adopting the subscription-based business model to keep up with the continually expanding demand.
  • The subscription video-on-demand (SVOD) streaming scene is fast expanding due to the expansion of media providers like Netflix, Amazon Prime, Eros Now, Hulu, Hotstar, and others. In addition, new entrants like Disney+ and Apple TV+, as well as Claro Video and HBO Max, fuel market expansion.
  • Hence, the broadcast platforms, media corporations, and advertising companies are rapidly deploying subscription billing management solutions with an aim to integrate revenue processes into one streamlined customer-focused experience, which is expected to provide unprecedented insight into the entire Quote-to-Cash process.
  • Smartphone adoption, low data tariffs, and investments in original and regional digital content are some favorable aspects driving the subscription and billing management industry.
  • In September 2021, Respondents were asked to select their favorite subscription video-on-demand (SVOD) platform in a survey conducted by Sherlock Communications in Brazil. Almost two-thirds (63%) of those polled chose Netflix. Amazon Prime came in second place, with 16% of respondents choosing it. Globoplay and HBO Max were selected by around 6% of the subjects.
Internet Penetration holds Significant growth in the Market
  • With the increasing number of smartphones worldwide and high-speed cellular networks present in most countries worldwide, the e-commerce industry is growing. With an increase in the E-commerce industry, mobile transactions are also expected to grow rapidly, providing a significant boost to the Subscription market.
  • Both B2C and B2B businesses are seeing an increase in recurring revenue from subscriptions. Customers prefer to rent software rather than buy it. Therefore subscription as a service (SAAS) is becoming increasingly popular among enterprises.
  • Latin America is a continent brimming with growth chances and potential, with a population of 657 million and a USD 10.5 trillion economy forecast to return to positive growth of 3.7 percent in 2021. It is home to a booming mobile-minded middle class and a knowledge-hungry workforce willing to embrace technological solutions to progress their communities.
  • Moreover, According to GSMA Intelligence, mobile internet penetration in Latin America will rise from 53% in 2018 to 64% by 2025.
  • For instance, prominent technology companies such as Uber, Spotify, Apple Inc., and Google LLC have transformed their business models to adapt to changing customer demand and are transitioning from a static & linear product offering to a subscription-based model to encourage predictable, recurring, and stable revenue.
  • Organizations are considering introducing better billing strategies to build flexible business operations and save capital investment. Paperless billing methods help organizations save money on paper, printing, and shipping. Customers can better arrange their payment schedules and budgets and prevent excessive late penalties by employing software and internet portals for billing and subscriptions.
Competitive Landscape

The Subscription Billing Management Market is fragmented due to several market players in this region offering innovative billing and invoicing solutions for subscription-based businesses. Also, the new and emerging and existing companies are increasingly raising funds to enhance and improvise their offerings to gain maximum market traction.

  • February 2022 - Vindicia, a division of Amdocs Media Division, announced an expansion of its long-standing partnership with Vimeo. Vimeo continues using Vindicia's services for subscription management and retention solutions as part of this arrangement.
  • October 2021 - Stripe, a worldwide technology company that builds internet economic infrastructure, said it has agreed to purchase Recko, a leading provider of payments reconciliation software for internet businesses.
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1.1 Study Assumptions? and Market Definition
4.1 Market Overview
4.2 Market Drivers
4.2.1 Surge in Adoption of Subscription business models
4.2.2 Increasing need for Updating Legacy Systems
4.3 Market Challenges
4.3.1 Complexities related to Data Synchronization
4.4 Assessment of the Impact of COVID-19 on the Latin America subscription and Billing Management Market
4.5 Industry Ecosystem Analysis
4.6 Industry Attractiveness-Porter's Five Force Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5.1 By Deployment (Trends, Revenue for the period of 2020-2027 & Market Outlook)
5.1.1 Cloud
5.1.2 On-premise
5.2 By Organization Size(Trends, Revenue for the period of 2020-2027 & Market Outlook)
5.2.1 Small and Medium Enterprises
5.2.2 Large Enterprises
5.3 By End-user Industry (Trends, Revenue for the period of 2020-2027 & Market Outlook)
5.3.1 BFSI
5.3.2 Retail and E-Commerce
5.3.3 IT and Telecommunication
5.3.4 Public Sector and Utilities
5.3.5 Media and Entertainment
5.3.6 Other End-user Industries
5.4 By Region (Trends, Revenue for the period of 2020-2027 & Market Outlook)
5.4.1 Brazil
5.4.2 Mexico
5.4.3 Rest of Latin America
6.1 Company Profiles
6.1.1 EBANX
6.1.2 Cloudmore
6.1.3 Oracle
6.1.4 SAP
6.1.5 Vindicia
6.1.6 Stripe
6.1.7 Kushki
6.1.8 Magnaquest Technologies
6.1.9 Chargebee
6.1.10 OneBill
6.1.11 Billcentrix
7 Investment Analysis
8 Future Outlook of the Market

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