Global eSIM Market By Solution (Smartphones, M2M, Laptops, Connected Cars, and Others), Application (Automotive, Transportation & Logistics, Retail, Consumer Electronics, and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032
Market Perspective
The global eSIM Market was valued at approximately USD 6 billion in 2022 and is expected to grow to USD 13.17 billion by 2032, with a compound annual growth rate of 8.1% from 2023 to 2032.
eSIMs provide significant benefits for various devices, including smartphones, wearables, laptops, tablets, and connected home devices. On the consumer side, many companies have introduced mobile devices with eSIMs. By 2025, it is expected that there will be over 75 billion connected devices in use worldwide. In the automotive industry, the adoption of eSIMs has allowed for greater flexibility in equipping trucks and cars with cellular connectivity, enabling new features and capabilities. It is expected that a significant number of cars will be equipped with cellular technology in the future, resulting in a more enjoyable driving experience through innovative connected services.
In 2022, the international GSMA organization published the SGP.31 standards, which extends the SIM operator switching model developed for consumer devices to IoT devices. This standard defines uniform interfaces between operators, service providers, and device manufacturers for devices such as remotely readable meters that lack an operator-switching user interface.
Due to the growth in the Internet of Things, the eSIM standards used in watches and smartphones are rapidly expanding, directing operator investments accordingly. Standardization enhances their ability to offer competitive services to the rapidly expanding market for IoT devices. As eSIM offers freedom in operator selection, remote over-the-air connectivity with encrypted communication, and compliance with standards and regulations, it has become a part of the daily business of the mobile industry for both operators (MNOs/MVNOs) and equipment manufacturers (OEMs).
Key Insights
- Based on the solution, the smartphones segment held the largest market share
- Based on application, the retail segment dominated the market
- On the basis of region, Asia Pacific accounted for the largest market share
Increased Reliability of M2M Systems and Growing Need for Innovative Consumer Electronics Drives the Global Market
The global eSIM market is driven by the increased reliability of M2M systems and the growing demand for innovative consumer electronics. The introduction of eSIMs with M2M capabilities is driving the market growth. The remote access features of these SIMs make deployment easier, and their ability to provide secure communication and relationships is crucial for many organizations.
In most cases, communication with other countries requires the use of third-party applications, but eSIMs offer reliable customized solutions. With calls and data stored on the mobile network and trusted operators monitoring communication, the eSIM market is experiencing exceptional growth.
M2M systems offer benefits such as reduced maintenance costs and downtime, real-time data monitoring, service time detection, remote control, and low power consumption. eSIM plays a crucial role in providing advanced network connectivity and wireless communication between cellular networks in a connected system.
The integration of eSIMs into consumer electronics provides excellent network connectivity, which is crucial in connected homes. eSIMs offer easy order management throughout the product life cycle, product differentiation, remote access, tracking, simplified logistics, and high-quality network connectivity, all of which enhance the user experience. This has led to increased use of eSIMs in various applications, contributing to market expansion.
Lack of Technical Expertise is Retraining the Market Growth
The eSIM is widely used for commercial purposes, particularly in connected cars, M2M systems, and laptops, and is popular in the technology and customer service industries. However, the need for technical knowledge presents a challenge for efficient marketing management. As demand for eSIMs grows, market vendors face the challenge of providing the necessary technology and infrastructure. This can be difficult as it requires a significant investment in technology.
In addition, the complexity of eSIM technology and a lack of technical expertise in the IoT application vendor segment can lead to a lack of understanding, which may affect market growth. Furthermore, limited adoption of eSIM technology in organizations may also hinder market revenue growth during the forecast period. These constraints can affect market revenue levels during the estimated timeframe.
Growing Use of IoT and Emergence of 5G Technology Offers Lucrative Revenue Opportunities for the Market
The IoT revolution is transforming the mobile industry and providing network service providers with opportunities to upgrade their technology. The future of 5G lies in eSIM technology, as it allows for seamless integration into smaller devices like fitness bands, wearables, and smartwatches. Companies can now easily adopt IoT systems with mobile devices and take advantage of 5G connectivity. With the growing popularity of smart devices across both corporate and consumer sectors, the demand for mobile and wireless connectivity is expected to boost product demand.
This presents new revenue opportunities for service providers as users look to purchase data devices and extend their data plans. The demand for communication services is especially high in emerging countries. The integration of IoT services with eSIM technology enhances the functionality of various devices, leading to increased market profitability.
Recent Developments
In November 2022: Mobilise released its eSIM software development kit (SDK) which enables SPs to provide customers with global connectivity from within their existing application, including eSIM activation capabilities. The kit also includes account management tools that give customers complete visibility and control over their mobile subscriptions, including immediate visibility of bundle usage, payment, and auto-renewal functions.
In September 2022: Monogoto collaborated with Workz to create a cloud-based platform for managing consumer and M2M eSIM devices for its clients in 180 countries. The partnership allows Monogoto's customers to change network profiles and install SIM cards in QR code-enabled devices with greater flexibility.
Segmentation Analysis
Based on the solution, the market is categorized into smartphones, M2M, laptops, connected cars, and others. The M2M segment is expected to dominate due to the proliferating use of eSIM for M2M connections for network operators via subscription services. MNOs (Mobile Network Operators) offer connectivity services for remotely and securely managing the cellular subscriptions of end-users. The automotive industry has recently endorsed the GSMA Embedded SIM Specification to improve vehicle connectivity, paving the way for a new generation of connected vehicles. It is anticipated to enhance security for a variety of connectivity services, thereby fostering market expansion.
Based on application, the market is segmented as automotive, transportation & logistics retail, consumer electronics, and others. The consumer electronic segment maintained the largest share owing to the increasing use of eSIM technology, which is anticipated to revolutionize consumer electronics. In consumer electronic applications, eSIMs are becoming increasingly popular due to their enhanced connectivity, high reliability, and enhanced security.
Regional Landscape
North America accounted for the Dominating Share due to the High Presence of Network Providers and the Fastest Technological Advancements
The North American eSIM market is expected to dominate due to the widespread adoption of smart devices and connected cars. The region is an early adopter of advanced technologies and is home to several leading vendors, driving market growth. The growing demand for smart devices in various industries, and the need for scalable network-based devices, is leading to the increasing popularity of eSIMs. These SIM cards offer M2M capabilities and remote management, making them a preferred choice among smart device manufacturers.
The eSIM allows users to store multiple operator profiles and switch between them remotely, driving demand for eSIMs. The rapid adoption of IoT in various industries, such as infrastructure, automotive, electronics and semiconductors, healthcare, and agriculture, is also leading to a growing demand for eSIMs. The growth of machine-to-machine learning is increasing the use of eSIMs, as it facilitates secure M2M communication and drives advancements in the connected ecosystem.
Europe is the Fastest Growing Market Owing to Increased Adoption of Consumer Electronics
The Europe eSIM market is expected to see robust growth thanks to the growing adoption of IoT technology and rising demand for embedded connectivity in vehicles. Key drivers include the trend toward smart homes and increasing consumer interest in a connected ecosystem. In 2020, Range and OPPO joined forces to bring Orange services to a wide range of OPPO smartphones and IoT devices in Europe, expanding Orange's reach.
The advent of 5G presents new opportunities for the industry. In addition to smartphones, OPPO has introduced several IoT products like the OPPO Watch and formed a team of experts to develop advanced solutions with partners. The collaboration between OPPO's technology and Orange's network and customer experience opens up new avenues for designing innovative solutions for the European market.
5G is poised to revolutionize IoT in Europe, offering faster data transmission and accelerating the deployment of autonomous vehicles. With faster communication and reduced latency, 5G will benefit the eSIM market by allowing for faster data exchange and improved navigation, leading to more connected smart home devices.
Competitive Landscape
- Airtel
- AT&T
- Deutsche Telekom AG
- Infineon Technologies AG
- KORE Wireless
- Mobilise
- Monogoto Ltd.
- NXP Semiconductors
- STMicroelectronics
- Thales
The Global eSIM Market is segmented as follows:
By Solution
- Smartphones
- Connected Cars
- M2M
- Laptops
- Others
By Application
- Automotive
- Retail
- Consumer Electronics
- Transportation & Logistics
- Others
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global eSIM Market By Solution
- February-2023
- 148
- Global
- semiconductor-electronics
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