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Mega Trends Foster Investment, Innovation and Expansion in Latin America, Finds Frost & Sullivan

BUENOS AIRES, Argentina, May 28, 2013 /PRNewswire/ -- Latin America is well on its way to becoming an economic force to reckon with by 2025, spurred by transformative and global forces termed "Mega Trends." Rising disposable incomes and a Gen Y population of more than 200 million not only makes this region one of the most attractive investment destinations in the world, but also a source of capital for companies globally.

New analysis from Frost & Sullivan (, Mega Trends in Latin America, identified over 10 key mega trends that will accelerate Latin America's growth rate to 6.5 percent per year by 2025. Fuelled by growth in middle class (461 million), urbanization (567 million people living in urban areas), increased infrastructure spending ($1.5 trillion) and improved connectivity (1.3 billion connected devices), Latin America is likely to become one of the most important markets globally, with a gross domestic product of $15.14 trillion by 2025.

"Increasing urbanization is expected to bring about spatial changes to cities, and create five Mega-cities, four Mega-regions and two Mega-corridors in 2025," said Frost & Sullivan Research Manager Lorena Isla . "Urbanization will also generate many investment opportunities in smart infrastructure and new market opportunities for innovative products targeting urban households."

The rising inclusion of women will bring this consumer segment into focus due to their higher spending power. Women are expected to represent more than 46 percent of the total working population, holding around 34 percent of total decision making positions by 2025. The empowerment of this demographic will stimulate demand for personal products and services, and luxury goods as well.

Meanwhile, almost 70 million people in Latin America will be aged over 60 years by 2020, which could cause healthcare expenditure to reach $580 billion by 2015, giving a boost to associated sectors.

Interestingly, most governments across the region are aiming to make Latin America a connected continent. The region is expected to have around 1.3 billion connected devices by 2016, including mobile phones, tablets, and other machine-to-machine connected devices, both in urban and rural areas.

"The proliferation of devices will be driven by the greater broadband penetration and 4G roll-out of 2011," noted Isla. "The robust growth of mobile subscribers, reaching more than 705 million by 2016, will support new business models designed for emerging consumer segments."

Electronification of sectors such as governance, entrepreneurship, education, commerce, and medicine will provide further impetus to the common goal of connectivity. Six major Latin American economies also plan to implement the analog TV switch-off in 2019.

Growth in such diverse industries is likely to attract more investments to trailing sectors such as infrastructure. Airport, energy, telecom infrastructure and space jam are all likely to benefit substantially from investors' interest in end-user markets.

Understanding the Mega Trends in the region is important to not only gain an exhaustive insight into the key drivers shaping Latin America but also an outline of the future. A critical task of the Mega Trends program is the "Macro to Micro" scenario analysis, which analyzes the micro impact of each Mega Trend on your business and helps design your company's future strategy for product and technology planning in Latin America.

If you are interested in more information on this research, please send an email to Francesca Valente , Corporate Communications, at, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Mega Trends in Latin America is part of the Mega Trends Growth Partnership Service program. Frost & Sullivan's related research services include: Mega Trends in Turkey and China Mega Trends: Macro to Micro Implications for 2020. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Mega Trends in Latin America

Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300

SOURCE Frost & Sullivan
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