eSIM Market Size, Share & Industry Analysis, By Application (Smartphones, Laptops/Tablets, Connected Cars, Wearable Devices, Smart Home Appliances, Vehicle Tracking, and Others), By Industry (Retail, Consumer Electronics, Manufacturing, Automotive, Transportation & Logistics, Energy & Utilities, and Others), and Regional Forecast, 2024-2032

The global eSIM market size was valued at USD 1.22 billion in 2023 and is projected to grow from USD 1.46 billion in 2024 to USD 6.29 billion by 2032, exhibiting a CAGR of 20.0% during the forecast (2024-2034). North America accounted for a market value of USD 447.76 million in 2023. Embedded SIM or eSIM technology facilitates remote provisioning, allowing users to switch, download, and delete different operator profiles without requiring a physical SIM. eSIMs save physical space within devices along with increased flexibility. They are environmentally friendly, which significantly helps to cut down the production of plastic cards.

The demand for these chips in the market is increasing, mainly due to technological advancements in manufacturing machinery equipment, industry 4.0, and other high-tech devices that are increasingly connected and can be monitored remotely. Hence, several OEMs and Mobile Network Operators (MNOs) have been innovating solutions by forming partnerships and collaborations for the eSIM market growth. For instance,

• In September 2022, Cloudflare announced the first zero-trust SIM for smartphones to protect corporate networks. Zero Trust SIM is an embedded SIM that is deployable on existing IOS and android devices, thus, mitigating the risk of SIM exchange attacks.


• In September 2022, Monogoto partnered with Workz to accomplish a cloud platform to handle M2M and consumer eSIM devices for its customer base across 180 countries. Monogoto uses this technology to connect applications such as wearables, ATMs, smart lights, and other devices. The partnership allows customers to change profiles and install SIMs of supported QR code devices.  

Thus, this technology is one of the prominent drivers for the Internet of Things (IoT) that is estimated to be used in various devices such as smartphones, transport, health monitoring, and others.   

The COVID-19 pandemic caused a semiconductor shortage that disturbed the supply chains of various industries. Even OEMs and telecom operatives were struck owing to the insufficient number of physical SIM cards as SIM plants transferred their production to advanced technologies. Mobile network operatives were resistant to shifting to advanced technology. Thus, consumers needed time to replace their smartphones and other devices with new advancements.

The sales revenue incurred in 2020 was less in comparison to the projected sales. Thus, there was a slight decline in the year-on-year market, but overall, the revenue growth had a positive impact.

eSIM Market Trends

Integration of Embedded SIM Technology with 5G Devices to Augment Market Growth

5G technology is designed and developed to connect with everything; it can deliver higher-speed internet access, increased availability, better reliability, and low latency. Thus, it is offering the ability to connect M2M devices virtually on a large scale along with privacy and security. For instance,

• In June 2022, STMicroelectronics launched the ST4SIM-201 embedded SIM (eSIM), a 5G M2M eSIM to carry out machine-to-machine (M2M) communication by following all the industry standards of 5G network access and M2M security.

From the connectivity perspective, 5G-enabled eSIM devices promote market growth in consumer and IoT sectors. For instance,

• According to the GSMA intelligence report 2021, among the 60 embedded SIM-enabled smartphones launched in 2021, more than half had 5G technology. Samsung and Apple were among the top players to launch 19 and 15 variants, respectively.


• In June 2021, OPPO, in collaboration with Thales Group, launched its first 5G SA-compatible eSIM smartphone, Find X3 Pro. The OPPO Find X3 Pro provides MNOs and customers with 5G experience through 5G S.A. networks.

Hence, 5G is a better network for eSIMs as it enables complete digitalization of the user's journey, along with data analysis and automation, thus increasing the demand for eSIM-equipped sensors in the market.

eSIM Market Growth Factors

MVNOs to Drive the Market Growth with International Roaming Services 

With the eSIM technology, global connectivity issues are resolved efficiently. The physical SIM is linked to a single operator that can't be changed without going through the complete process of exchanging SIM from the local operator. Whereas, these cards enable consumers to save multiple mobile operative profiles and be allowed to change a profile at any time OTA (over-the-air) without needing a physical SIM replacement.

Hence, Mobile Virtual Network Operators (MVNOs) are at the center of the industry with significant revenues from international roaming, International Direct Dialing (IDD), messaging, and data services, and will eliminate international roaming revenues. Several key players and new entrants are introducing new tariff plans with the advanced technology for international roaming across the world. For instance,

• According to the GSMA Intelligence report 2021, more than 230 MVNOs were providing such SIM services in December 2021.


• In December 2021, Airalo, MVNO, which offers embedded SIM internet services in multiple countries worldwide, updated their data plans without roaming tariffs. Airalo is a Singapore-based startup founded in 2019 that provides borderless cellular connectivity services.

Smartphone users can pick an additional regional provider in a host country from the device's convenience. Thus, this technology terminates international roaming as Smart Global MVNOs enable all-in-one global connectivity and surge the demand with international roaming.

RESTRAINING FACTORS

Lack of Awareness Among Consumers Hinders the Market Growth

The eSIM market share is growing commercially, connectivity services associated and benefits are significant. But still, there are several parts of the world where people are unaware of the technology. The penetration of embedded SIM technology is comparatively less in developing nations, accompanied by lesser awareness and technical knowledge. For instance,

• According to the Giesecke+Devrient GmbH eSIM report 2021, on average, only 20% of consumers are aware of this SIM technology in prominent markets. The number is even lower in some markets. Only 12% of consumers in Canada were aware of this technology, even though Canada was one of the early adopters in the market.


• 80% of consumers still don't know about this technology, thereby posing risks to large-scale adoption and hindering the market growth.

eSIM Market Segmentation Analysis

By Application Analysis

Increasing Demand for Connected Cars to Augment the Market Growth

As per application, the market is split into smartphones, laptops/tablets, wearable devices, connected cars, smart home appliances, vehicle tracking, and others.

The connected cars segment held the largest share in 2022, followed by the smartphones segment. These chips allow the vehicle to be connected by several operators and allow the choice of regional operators' connectivity at the vehicle's destination country, thus driving the market for connected cars. Wearable devices such as smartwatches and smart glasses are projected to grow with the highest CAGR. Embedded SIM support and management are becoming more significant with advanced cellular-connected devices, such as AR/VR headsets, smartwatches, and mHealth devices. mHealth devices, such as glucose monitors, fall detectors, ECG monitors, and kids' or pets' trackers, are flourishing in the market. For instance,

• In November 2022, MetAlert partnered with POD Group to advance embedded SIM IoT connectivity. MetAlert, Inc. is a developer of wearable GPS human, remote patient monitoring, and asset tracking. MetAlert selected POD Group's ENO ONE solution for the enhancement of Smartsole platform.

Thus, such innovations in the wearable sector are driving the demand for such cards in the market.

By Industry Analysis

Increasing Consumer Demand for eSIM-Enabled Devices to Create Opportunities in the Coming Years

By industry, the market is split into retail, consumer electronics, automotive, manufacturing, transportation & logistics, energy & utilities, and others (healthcare).

The intervention of eSIM technology with 5G also brings innovations in the different industrial sectors to increase the quality of existing applications. In 2023, the automotive segment accounted for the largest share of the market. Improved reliability and flexible service for connected cars and emergency call systems enhance the demand for such SIM technology in the market. It enables trucks and cars with cellular connectivity, unlocking capabilities, and features. Integrating 5G technology with eSIM in the automation sector offers cellular connectivity, new mobility features, and automated capabilities to deliver a better customer experience. For instance,

• In September 2021, BMW Group, in partnership with Deutsch Telekom, integrated with 5G and Personal eSIM networking and developed BMW iX's first premium vehicle with 5G.

• In April 2022, IDEMIA introduced automotive 5G embedded SIM certified according to GSMA standards for an enriched passenger car experience. The advanced automotive offering is combined with Dual SIM Dual Active (DSDA) technology that allows carmakers to process their telematics services independently. It also enables passengers and drivers to have an ideal data stream in the vehicle with the desired carrier.

As per our research, the consumer electronics segment is projected to have the highest growth rate in the market, with tech giants expanding this SIM technology in a wide range of consumer devices. Various tech incubators are supporting startups testing advanced consumer IoT and advanced technology devices, such as headsets, smoke detectors, and kids/pets or health monitoring wearable devices.

The rising launch of embedded SIM-only smartphones and initiatives by vendors to improve the consumer experience for onboarding/activation help boost consumer awareness and adoption.

REGIONAL INSIGHTS

The market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

Our analysis shows that North America generates maximum revenue share during the forecast period. Significant players, such as Apple Inc., Alphabet Inc., and Samsung Electronics Co. Ltd, offer embedded SIM-enabled devices and are contributing to the strong consumer demand for such devices in the region. For instance,

• According to GSMA Intelligence 2021, awareness regarding this technology increased from 17% in 2020 to 27% in 2021. Also, more OEMs are taking initiatives to adopt this technology than the telecom operators in the U.S. Thus, this is driving the demand for high-tech compatible devices in the region.

The report specifies that Asia Pacific will witness the maximum CAGR during the forecast period. Developing countries in the region, such as India, South Korea, and Japan, are making noteworthy advancements toward digitization and facilitating high-tech solutions with the increasing consumer demand for flexible solutions and services.

The adoption of smartphones is increasing in these developing nations. Several prominent players in the market, such as Samsung, Apple, and Google, are introducing embedded SIM technology, thus creating various opportunities in these regions. For instance,

• In August 2022, Reliance Jio, Bharti Airtel, and Vi were the only telecom companies to enable embedded SIM support for smartphones. The technology supports both the devices, android and iPhones.

This market is growing in Europe with the increasing advancements by key players in the region such as Deutsche Telekom, Giesecke+Devrient GmbH, and others. For instance,

• In May 2022, Deutsche Telekom (DT), a German MNO, announced its decision to adopt embedded SIM technology. The company is operating in various European countries and is predominately prioritizing implementation of this technology. The company would provide such SIM instead of physical SIM to the customer, and it plans to support all devices with such technology.

South America is estimated to show moderate growth during the forecast period due to high-tech companies, government investments to improve IT & telecommunication and the growing awareness regarding advanced technology in the region. For instance,

• According to the GSMA Intelligence report 2021, SIM awareness in Brazil has increased from 22% in 2020 to 28% in 2021. Thus, the increasing awareness among consumers would create opportunities for the region's market.

List of Key Companies in eSIM Market

Technological Developments by Leading Companies to Aid Market Proliferation

The key players are keen on developing embedded SIM technology solutions in numerous applications such as smartwatches, smartphones, laptops/tablets, wearable devices, and others. Development of new products and advancements in existing products to expand business opportunities are the key strategies of enterprises. Likewise, market players strategically acquire businesses and partnerships worldwide for global expansion.

List of Key Companies Profiled:

• Thales Group (France)


• Infineon Technologies AG (Germany)


• STMicroelectronics (Switzerland)


• NXP Semiconductors (Netherlands)


• Giesecke+Devrient GmbH (Germany)


• Sierra Wireless Inc. (Canada)


• IDEMIA (France)


• KORE Wireless (U.S.)


• Kigen (U.K.)


• Valid S.A. (Rio de Janeiro)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Celona, a U.S.-based private network provider, launched an automated eSIM solution for a private 5G/LTE network registered with an enterprise Mobile Device Management (MDM) system.


• February 2023: Kigen, a security connectivity eSIM provider, collaborated with Skylo, a satellite network or non-terrestrial network (NTN) operator, to bring satellite connectivity integration with eSIM to compatible IoT devices.


• December 2022: Grover, in collaboration with Gigs, launched an embedded SIM service called Grover Connect for smartphones. Grover is one of the leading subscription providers for consumers in tech. The service provides customers with such mobile SIM service in the U.S. presently and will be available to European consumers shortly.


• September 2022: BICS announced a partnership with Thales Group to simplify the integration of embedded SIM with IoT technology. The partnership facilitates consumers to a wider IoT while incorporating connectivity activation for consumers and enterprises. BICS is a global leader in IoT and digital communications.


• April 2022: Sierra Wireless partnered with Orange Wholesale France to boost its presence in global networks and connectivity sector across Europe. Further, the company strengthened its smart connectivity facilities across Europe on its One global SIM, made accessible in several form features and with the enabled embedded SIM Ready-to-Connect modules.


• January 2022: IDEMIA partnered with Microsoft to offer advanced SIM and connectivity solutions for customer, IoT, and M2M devices. The collaboration combines IDEMIA's progressive connectivity solutions and enduring industry expertise with Microsoft's cloud platform to expand these services worldwide.


• October 2021: NXP and Qualcomm Technologies expanded their collaboration to integrate the chips of NXP with wearable devices based on the Snapdragon Wear platform of Qualcomm. The integration offers a better user experience with improved streamlined design, rapid scaling, more manageable logistics, and flexible customization.

REPORT COVERAGE

The study on the market includes prominent areas globally to gain enhanced knowledge of the industry verticals. Moreover, the research offers insights into the most recent endeavors and industry developments and an analysis of high-tech solutions being adopted promptly worldwide. It also highlights some of the growth-stimulating limitations and elements, allowing the reader to obtain a comprehensive understanding of the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 20.0% from 2024 to 2032
Unit	Value (USD billion)
Segmentation	By Application Smartphones Laptops/Tablets Connected Cars Wearable Devices Smart Home Appliances Vehicle Tracking Others (Smart Meters, Smart Grids) By Industry Retail Consumer Electronics Manufacturing Automotive Transportation & Logistics Energy & Utilities Others (Healthcare) By Region North America (By Application, By Industry) U.S. (By Industry) Canada (By Industry) Mexico (By Industry) South America (By Application, By Industry) Brazil (By Industry) Argentina (By Industry) Rest of South America Europe (By Application, By Industry) U.K. (By Industry) Germany (By Industry) France (By Industry) Italy (By Industry) Spain (By Industry) Russia (By Industry) Benelux (By Industry) Nordics (By Industry) Rest of Europe Middle East & Africa (By Application, By Industry) Turkey (By Industry) Israel (By Industry) GCC (By Industry) South Africa (By Industry) North Africa (By Industry) Rest of the Middle East & Africa Asia Pacific (By Application, By Industry) China (By Industry) India (By Industry) Japan (By Industry) South Korea (By Industry) ASEAN (By Industry) Oceania (By Industry) Rest of Asia Pacific