eSIM Market by Solutions (Hardware and Connectivity Services), by Applications (Connected Cars, Laptops, M2M, Smartphone, Tablets, and Wearables) and by Industry Vertical (Automotive, Consumer Electronics, Energy & Utilities, Manufacturing, Retail, and Transportation & logistics)- Global Opportunity Analysis and Industry Forecast 2024-2030

Market Definition

The eSIM Market size was valued at USD 8.75 billion in 2023 and is predicted to reach USD 16.10 billion by 2030 with a CAGR of 9.10% from 2024-2030. eSIM, or embedded sim, is a programmable sim card that is built into a device, such as a smartphone, tablet, or smartwatch. Unlike traditional sim cards, which are removable and must be physically inserted into a device, eSIMs are integrated into the device and can be programmed remotely. eSIM technology enables users to activate cellular service on their device without needing to obtain a physical sim card. This simplifies the process of switching carriers, as users can easily switch carriers without needing to swap out sim cards. It also enables users to add a second cellular plan to their device, such as when traveling abroad, without needing to obtain a local SIM card. eSIMs are also smaller than traditional SIM cards, which allows for smaller and more streamlined devices. They are also more secure, as the programming is stored in the device's hardware and cannot be easily removed or tampered with.

Market Dynamics and Trends

The rising adoption of Internet of Things (IoT) devices across industries is driving the demand for eSIM technology. These devices require efficient connectivity for data transmission, and eSIMs offer a solution by enabling seamless and flexible connectivity without the need for physical SIM cards. According to a recent report by GSMA, an organization representing mobile network operators globally, the number of Internet of Things (IoT) connections is projected to surpass 23 billion by 2025, up from 15.1 billion in 2021. As more industries integrate IoT devices into their operations, the demand for eSIM technology continues to grow, fueling market expansion.

Moreover, the growing adoption of 5G networks are further accelerating the growth of the eSIM market. 5G supports a wide range of use cases, from high-speed mobile broadband to mission-critical applications. This requires a connectivity solution that is flexible and scalable, and eSIMs can enable seamless network switching and support multiple operator profiles, making them an ideal solution for 5G connectivity.

In addition, the global surge in the automotive industry is also significantly fuelling the growth of the eSIM market. eSIM technology is used in automotive for a variety of applications such as enabling connected car services, providing over-the-air software updates, facilitating remote diagnostics, and enhancing vehicle safety and security through features such as emergency calling and theft tracking.

However, the eSIM market is subject to regulation, and different countries may have different regulations regarding eSIM technology, thus it is restraining the growth of the market. On the other hand, 5G-enabled eSIMs are expected to create ample growth opportunities for the market in the future. With the widespread deployment of 5G networks, eSIMs can be designed to take advantage of the high-speed connectivity offered by 5G. This can enable new applications, such as augmented and virtual reality, as well as improved remote management of devices.

Market Segmentation and Scope of Study

The global eSIM market is segmented on the basis of solution, application, industry vertical and geography. Based on solution, the market is classified into hardware and connectivity services. Based on the application, the market is segmented into connected cars, laptops, m2m, smartphone, tablets, wearables. On the basis of industry vertical, the market is categorized into automotive, consumer electronics, energy & utilities, manufacturing, retail, transportation & logistics. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis

North America dominates the global eSIM market and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the proliferation of mobile virtual network operators (MVNO) offering innovative mobile and IoT services to consumers and businesses. eSIM technology allows MVNOs to offer flexible subscription plans, seamless switching between networks, and simplified device onboarding processes. As MVNOs continue to disrupt the traditional mobile market and cater to niche customer segments, the demand for eSIM-enabled devices and services is expected to increase.

In addition, government initiatives aimed at promoting digital connectivity and fostering innovation in telecommunications infrastructure are contributing to the growth of the eSIM market in North America. In April 2022, the US Agency for International Development (USAID) announced new public-private partnerships under the Digital Invest Program. This program aims to mobilize private capital for digital finance and internet service providers in developing countries, promoting digital inclusion.

On the other hand, Asia-Pacific shows substantial growth in the global eSIM market owing to the growing automotive industry and surge in the adoption of connected vehicle technologies, driven by the demand for advanced infotainment systems, telematics services, and autonomous driving capabilities. According to the International Trade Administration, China remains the global leader in vehicle sales and manufacturing output, projected to achieve a domestic production milestone of 35 million vehicles by 2025, setting its position as the world's largest vehicle market. eSIMs play a crucial role in enabling seamless connectivity for connected cars, facilitating features such as real-time navigation, vehicle diagnostics, and emergency assistance. With governments promoting smart transportation initiatives and automakers focusing on enhancing in-car connectivity, the eSIM market is significantly growing in the region.

Moreover, Asia-Pacific is home to some of the largest and fastest-growing mobile markets globally, with millions of subscribers accessing mobile networks for communication, entertainment, and commerce. According to the Ministry of Industry and Information Technology (MIIT), China recorded 1.84 billion cellular IoT connections in 2022. eSIM technology offers benefits such as instant activation, remote SIM provisioning, and multi-network compatibility, catering to the diverse needs of mobile users in the region. As consumers seek greater flexibility, affordability, and convenience in mobile connectivity, the adoption of eSIMs is poised for significant growth. 

Competitive Landscape

Various market players operating in the eSIM market include Gemalto N.V., Giesecke+Devrient GmbH, STMicroelectronics N.V., Infineon Technologies AG, Valid S.A., Kigen Ltd, Deutsche Telekom AG, KORE Wireless, NXP Semiconductors N.V., Sierra Wireless among others. These market players are adopting various strategies such as product launch and collaboration to maintain their dominance in the global eSIM market.

For instance, in February 2023, Giesecke+Devrient (G+D) and NetLync launched eAAS, enabling eSIM quick transfer on iPhone. This innovation facilitates seamless transfer of eSIM profiles between devices, enhancing user experience and convenience in managing eSIM-enabled devices.

Also, in January 2023, Sierra Wireless, launched smart connectivity premium with eUICC capabilities, and extended connectivity coverage in the United States. This eUICC software enables greater flexibility in using eSIMs for both consumers and industries, resulting in better network coverage.

Moreover, in November 2022, STMicroelectronics, collaborated with Thales, enables secure contactless convenience in Google Pixel 7 with eSIM technology. This partnership enhances the security and convenience of eSIM-based mobile connectivity in the Google Pixel 7 smartphone, offering users a seamless and secure experience for accessing cellular networks.

KEY BENEFITS

• The report provides quantitative analysis and estimations of the eSIM market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the eSIM market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the eSIM market is provided in the report.  

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

KEY MARKET SEGMENTS

By Solution    

• Hardware 

• Connectivity Services

By Application 

• Connected Cars

• Laptops

• M2M

• Smartphone

• Tablets

• Wearables

By Industry Vertical 

• Automotive

• Consumer Electronics

• Energy & Utilities

• Manufacturing

• Retail

• Transportation & Logistics

By Region

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)    

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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