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The global eSIM market size was valued at USD 1.01 billion in 2022 and is projected to grow from USD 1.21 billion in 2023 to USD 4.62 billion by 2030, exhibiting a CAGR of 21.0% during the forecast period.
Embedded SIM or eSIM technology facilitates remote provisioning, allowing users to switch, download, and delete different operator profiles without requiring a physical SIM. 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,
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.
COVID-19 to Open Numerous Opportunities for Market Players in the Long-Term
COVID-19 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. The market gained pace considerably with the growth of shipments and activations due to online shifts and increasing digitalization. GSMA's "Mobile Economy 2021" report predicts that by 2025, there will be 2.4 billion embedded SIM-enabled smartphones in the market.
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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. From the connectivity perspective, 5G-enabled eSIM devices promote market growth in consumer and IoT sectors. For instance,
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.
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,
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.
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,
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,
Thus, such innovations in the wearable sector are driving the demand for such cards in the market.
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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).
In 2022, 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. Several key players in the market are innovating with this technology. For instance,
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.
North America eSIM Market Size, 2022 (USD Billion)
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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,
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,
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,
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,
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The Middle East & Africa region is likely to display moderate growth, with several players entering the region's market. Government initiatives and tech firm investment are driving the growth of such devices in the region. Workz is the first company to provide these chips in the Middle East & Africa.
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.
An Infographic Representation of Embedded SIM (eSIM) Technology Market
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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.
CAGR of 21% from 2023 to 2030
Value (USD billion)
By Application, Industry, and Region
The market is projected to reach USD 4.62 billion by 2030.
In 2022, the market stood at USD 1.01 billion.
The market is projected to grow at a CAGR of 21.0% in the forecast period (2023-2030).
Smartphones, connected cars, and wearable devices are likely to lead the market.
Wearable devices will boost sales in the market.
Thales Group, STMicroelectronics, Giesecke Devrient GmbH, Sierra Wireless Inc., IDEMIA, and NXP Semiconductors are the top players in the market.
North America is expected to hold the highest market share.
By Industry, consumer electronics is expected to grow with the highest CAGR.
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