eSIM Market

The Global eSIM Market size was valued at USD 7960.86 Million in 2022 and is expected to reach USD 16589.28 Million by 2031, expanding at a CAGR of 8.5% during 2023–2031. The growth of the market is attributed to the rising number of Internet of Things (IoT) connected devices in various end-use verticals such as automotive, consumer electronics, and energy and utilities.

eSIM crad is a hardware chipset that is installed in a cellular phone where mobile network operators (MNOs) store their data through radio signals. The size of eSIM is smaller than a Nano sim and is reprogrammed by a software. An e-sim card provides all services that traditional SIM cards provides to the user. Additionally, eSIM offers various benefits such as supporting multiple mobile carriers, making the subscription management easier for the device end-user. It also eliminates the need for handling several physical SIM cards by the end-user.

Increasing adoption of wireless cellular-based solution among different end-use verticals is due to the features of eSIM technology that provides security, reliability, and cost-efficient cellular connectivity for IoT/M2M applications. eSIM technology enables secure Machine-to-Machine communication, thereby innovating the connected ecosystem. eSIMs are directly soldered to the circuit, thereby ensuring their physical security, thus making it impossible to remove the SIM for the device for misuse.

eSIM Market Drivers, Restraints, Trends, and Opportunities

• Increasing number of M2M connections globally is driving the market growth.
• Rising adoption of eSIMs in M2M applications such as connected cars, retail POS, and smart meters is anticipated to boost the growth of the market.
• eSIM requires less space in M2M devices, thus increasing its adoption in M2M applications.
• Lack of technological awareness among end-users and smaller number of MNOs supporting eSIM technology are restraining the market growth.
• Absence of technical support in many countries can the adoption of eSIM technology among telecom carriers. For instance, Apple Inc. has announced the launch of different models of iPhones having preinstalled eSIM in it. However, in countries such as India and Japan, all carriers are not supporting eSIM technology, thus affecting the market growth
• An eSIM collects and stores the data of MNOs in an in-built software of the device that is prone to various security hacks. Additionally, it operates through multiple MNOs and physical platforms, which exposes it to the risks of the virtual environment. Thus, such factors can impede the market growth.
• The emergence of COVID-19 pandemic has adversely affected the global eSIM market. Various government restrictions to control spread of the disease has resulted in supply chain disruptions.
• eSIM removes the inconvenience of changing service providers. Additionally, it leads to operational efficiency and provision of secure environment. The latest embedded SIM cards offer guaranteed profile interoperability, thereby spurring the growth of global e-sim industry.

Scope of eSIM market Report

The report on the global eSIM Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

eSIM Market Segment Insights

Connectivity services segment to account for a significant market share.

On the basis of solutions, the market is segmented into hardware and connectivity services. The connectivity services segment is anticipated to account for a significant market share during the forecast period. Connectivity services are the services provided by the MNOs for secure and remote handling of cellular subscriptions of the end-users. Increasing adoption of eSIMs for M2M connections is positively impacting the subscription services provided by the network operators. Moreover, MNOs offer connectivity services that create revenue generation opportunities for network providers.

The hardware segment is expected to expand at a substantial growth rate owing to the increasing adoption of eSIMs by consumer electronics manufacturers. Furthermore, growing adoption among smartphone manufacturers to insert eSIM in the device to save space is driving the segment growth.

M2M segment expected to account for a considerable market share.

Based on applications, the market is bifurcated into consumer electronics and M2M. The M2M segment is further divided into energy & utilities and automotive. While the consumer electronics segment is segregated into smartphones and wearables The M2M segment is expected to account for a considerable market share owing to the growing penetration of the product in the automotive industry for M2M connectivity. Additionally, increasing adoption for eSIMs in connected cars and emergency call systems is driving the segment growth.

The consumer electronics segment is projected to expand at a rapid pace during the forecast period. The integration of eSIM in smartphones allow manufacturers to save space as less space is required for the product. For instance, in 2018, Apple Inc. and Goggle LLP announced the introduction of eSIM technology in their smartphones.

North America projected to account for a large market share.

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to account for a large market share. Rapid technological advancements and the presence of major network providers such as Giesecke+Devrient Mobile Security GmbH, Gemalto NV, and ARM Holdings in this region are expected to drive the regional market growth.

The market in Asia Pacific market is anticipated to expand at a healthy rate owing to the rising adoption of IoT technology and the increasing demand for embedded connectivity in vehicles. Additionally, increasing adoption of eSIMs in consumer electronics such as smartphones, wearables and laptops is expected to boost the market in the region during the forecast period.

Segments

The global eSIM Market has been segmented on the basis of

Solutions

• Hardware
• Connectivity Services

Applications

• Consumer Electronics
• M2M

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Infineon Technologies AG
• NXP Semiconductors N.V.
• STMicroelectronics
• Deutsche Telekom AG
• Giesecke+Devrient Mobile Security GmbH
• Gemalto NV
• ARM Holdings
• KORE Wireless Group Inc.

Competitive Landscape

Some of the key players in the global eSIM market are Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics, Deutsche Telekom AG,   Giesecke+Devrient Mobile Security GmbH, Gemalto NV, ARM Holdings and KORE Wireless Group Inc.

Companies are engaging in various business strategies such as collaborations, joint ventures, and mergers & acquisitions. This is aiding manufacturers to improve their market share and helping them to increase their product offering in various regions. Additionally, manufacturers are focusing on the development of advanced technologies and cost-effective solutions.

eSIM allows consumers to change their mobile operators easily, thus increasing number of consumers switching between network providers, which is anticipated to result in intense competition between the network operators.