Global eSIM Market

Know All About The Global eSIM Market

Market Research Future (MRFR) expects the global eSIM market to hit USD 5.71 Billion by 2030, growing at a 31.4% CAGR throughout the assessment period (2020–2030). The growing adoption of embedded SIM (eSIM) is a key driving force behind the rapid development of this market. It is estimated that by 2025, around 2.8 billion smartphone users worldwide will adopt eSIM.

The rewritable and compatible with all leading mobile operators worldwide, the eSIM technology offers secured internet connectivity to consumers as well as IoT devices. Specifications in terms of data and security mechanisms are standardized to allow interoperability, enabling remote SIM provisioning to any mobile device. Today, various smartphones and other personal devices capable of connecting to cellular networks through eSIM technology are widely available.

eSIM Market Landscape 

eSIMs are used in various consumer products such as smartphones, wearables, and computers. It can also be found in IoT / M2M devices used in automotive and smart metering. They are also included in medical IoT devices, smart meters, home automation, security systems, connected cars, IoT asset tracking devices, handheld POS (Point of Sales) systems, and others.

Major businesses are rapidly adopting eSIM solutions to leverage their benefits and opportunities. eSIM brings a range of advantages, such as a simple and fast onboarding experience and subscription flexibility features. The rewritable eSIM allows end-users traveling abroad to pick up a local pre-paid phone number that could help avoid premium roaming fees.

Service providers can enhance the overall customer experience with high logistics and support without requiring more than one SIM card. eSIM carriers can extend mobile connectivity to many new consumer-connected devices, creating new business opportunities by extending the mobile connectivity reach to new typologies.

Currently, iOS, Android, Wear OS, and Windows 10 operating systems support eSIM, and more eSIM-compliant devices are expected soon. The yearly shipment of eSIM-compliant smartphones is expected to grow from 102 million in 2019 to 509 million by 2024. eSIM adoption will be widespread, penetrating deeply into the service models across technology providers.

Device manufacturers expect that by 2025, most of their total devices will be connected through eSIM. Mobile operators estimate a similar kind of adoption, and most of them are planning to run a hybrid SIM/eSIM model in the near future. All these assumptions indicate that the demand for eSIMs would be soaring high. On this backdrop, arise a question, if eSIM technology providers are ready to meet this demand?

Many industry players believe that the eSIM production would be slowed due to various barriers, such as designing & production complexities, extended time to market, and volatile production costs & poor availability of raw components. This presents a major gap in the demand-supply ratio of eSIMs due to an inadequate supply of eSIM technology, which would eventually lead to slowing down the eSIM adoption.

On the other hand, new entrants in the market would help tackle the eSIM delivery issue to some extent. But again, these newcomers would face a number of challenges, including complexities in implementing the eSIM model. Many eSIM technology providers are working on developing remote SIM provisioning solutions for mobile operators. These capabilities of SIM manufacturers would help operators to effectively offer eSIM services and make the switch to eSIM swiftly and professionally.

Cumulative Opportunities 

eSIM is becoming much of a priority for OEMs as 5G proliferates. Most high-end smartphone and smartwatch providers have already made eSIM a priority. eSIM appeals to consumers by adding another layer of digitization, allowing hassle-free and faster enrolment and subscription delivery. Industry players need to increase the availability of eSIM services and customer adoption.

However, the eSIM adoption rate will mostly depend on operators’ commercial and subscription plans. eSIM providers, with their wider strategies to expand their eSIM services and end-to-end solutions across all markets, are taking up initiatives to increase the awareness that can lead to increasing the eSIM adoption. However, more work needs to be done to boost the eSIM adoption worldwide.

eSIM helps streamline manufacturing and logistics; therefore, consumer goods and automakers are implementing eSIMs as much as industrial IoT. AI and M2M capabilities show a positive growth trend for the eSIM market. As machine learning capabilities raise further, the eSIM market is likely to garner significant traction in the years to come.

MVNOs are aggressively using eSIM to enhance their digital experiences and marketing efforts. Most leading smartphone manufacturers are working on enhancing their capabilities to support eSIM and offer eSIM-enabled smartphones. Mobile operators see eSIM as an opportunity to increase the consumer base by strengthening the customer experience than creating new revenue.

Industry Players’ Strategies to Follow

eSIM providers strive to provide hardware-based eSIM and eSIM management solutions and extend their expertise in deploying critical business solutions worldwide with data center policy, high availability, scalability, etc. They build futuristic research and development labs and teams for eSIM-related technologies that can contribute to the eSIM standardization & interoperability, like remote provisioning architecture for embedded UICC specifications. Also, they form strategic partnerships and alliances with local and international mobile operators, MVNOs, OEMs, and automotive markets.

Notable Industry Updates

On Mar 03, 2022, THALES announced that C Spire selected it to gain access to its eSIM management solutions. Thales would provide C Spire with local support and the ability to future-proof eSIM technologies with responsive adoption for new smart devices. Thales will also empower C Spire’s customers to remotely activate and manage their device subscriptions with mobile-centric services, such as digital enrolment and support.