eSIM Market

Market Overview:

The global eSIM market size reached US$ 10.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 43.6 Billion by 2032, exhibiting a growth rate (CAGR) of 17.56% during 2024-2032. The increasing research and development efforts leading to improved capabilities, the enhanced user experience offered by it, the supportive regulations and policies, and the expansion of Industry 4.0 are some of the factors propelling the market.

eSIM, short for embedded Subscriber Identity Module, is a revolutionary technology that replaces the physical SIM card with a built-in chip inside a device. It allows users to activate, switch, and manage mobile network subscriptions without needing a physical SIM card. These are commonly found in smartphones, smartwatches, tablets, and other connected devices. This technology offers several advantages. It enables seamless switching between carriers without acquiring and inserting a new SIM card. It also allows for easier international travel, as users can connect to local networks remotely. Furthermore, they contribute to reducing electronic waste as they eliminate the need for disposable plastic SIM cards. The adoption of products has been steadily increasing, with major telecommunication companies and device manufacturers embracing the technology. As more devices become eSIM-compatible, it will likely become a standard feature, providing greater flexibility and convenience to users worldwide.

The global market is majorly driven by the increasing adoption of smartphones. In line with this, the growth of the Internet of Things (IoT) is significantly contributing to product adoption in various IoT devices. Furthermore, the rise of remote work accelerates the need for reliable and flexible connectivity, bolstering the market. Apart from this, the 5G rollout further fuels the demand for the product to support faster and more reliable connections. Moreover, the embedded SIM in laptops is propelling the market. Besides, the escalating product demand in healthcare applications in medical devices and remote patient monitoring systems is strengthening the market. Additionally, the significant growth in the automotive industry is providing a boost to the market as the product is widely used in all kinds of connected vehicles in infotainment systems.

eSIM Market Trends/Drivers:

Increasing product demand in M2M operations

The increasing product demand in Machine-to-Machine (M2M) operations is catalyzing the market. M2M communication involves exchanging data between connected devices without human intervention. This technology finds applications in diverse industries such as healthcare, logistics, agriculture, manufacturing, and smart cities. eSIMs play a pivotal role in M2M operations by providing a seamless and secure connectivity solution. As M2M deployments expand, the demand for eSIM-enabled devices rises to enable efficient data exchange and communication between machines. With this technology, M2M devices can connect to networks globally, supporting real-time monitoring, remote management, and automation. Industries recognize the benefits of M2M operations to enhance efficiency, reduce operational costs, and improve decision-making processes. Consequently, the demand for the product in M2M applications continues to rise, facilitating market growth and driving innovation. As M2M technologies evolve and find new use cases, their adoption is expected to accelerate further in the coming years.

Rising initiatives by governments worldwide to boost M2M communications

Governments worldwide are increasingly recognizing the transformative potential of Machine-to-Machine (M2M) communications and are actively initiating policies and programs to boost their adoption. These initiatives are driven by the desire to foster economic growth, enhance public services, and promote sustainable development. Furthermore, the governments are investing in developing robust communication infrastructures, including expanding high-speed internet and deploying 5G networks, which are vital for supporting M2M operations. Additionally, they are collaborating with industry stakeholders to create regulatory frameworks encouraging seamless integration of M2M technologies. M2M communications find applications in numerous critical sectors, such as healthcare, transportation, agriculture, and smart cities. Governments are leveraging M2M to improve healthcare services, optimize transportation networks, enhance agricultural productivity, and develop efficient urban planning solutions. By promoting M2M communications, governments aim to boost efficiency, reduce resource consumption, and improve citizens' overall quality of life. These proactive initiatives are playing a crucial role in driving the adoption of M2M technologies and, in turn, fueling the demand for the product, which acts as a fundamental enabler of seamless and secure M2M connectivity.

Growing product uptake in the energy and utility industry

The energy and utility industry is experiencing a growing uptake of technology as it seeks to optimize operations and enhance efficiency. With the increasing adoption of smart grids and the integration of renewable energy sources, there is a rising demand for reliable and secure machine-to-machine (M2M) communications. They play a vital role in this sector by providing seamless connectivity for various devices and sensors used in energy management and utility services. They facilitate real-time data exchange, remote monitoring, and control of energy assets, enabling better management of power distribution, demand-response systems, and predictive maintenance. Additionally, they offer enhanced security features, safeguarding critical infrastructure against potential cyber threats. As the energy and utility industry embraces digitization and automation, the demand for eSIM-enabled devices will continue to grow. By leveraging this technology, the energy and utility sector can optimize operations, reduce costs, and improve reliability, ultimately contributing to a more sustainable and efficient energy ecosystem. 

eSIM Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global eSIM market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on type, solution, application and industry vertical.

Breakup by Type:

• Data-Only eSIM
• Voice, SMS and Data eSIM

Data-Only eSIM dominates the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes data-only eSIM and voice, SMS and data eSIM. According to the report, data-only eSIM represented the largest segment.

Data-Only eSIMs are designed to provide connectivity solely for data services. These are commonly used in devices like tablets, smartwatches, and IoT devices that primarily require internet access but do not rely on traditional voice calls or SMS messaging. Data-only eSIMs enable seamless data connectivity without needing a physical SIM card, making them ideal for mobile data-intensive applications.

On the other hand, Voice, SMS, and Data eSIMs, also known as full-function eSIMs, offer comprehensive connectivity services, including voice calls, SMS messaging, and data access. These are typically used in smartphones and other communication-centric devices that require complete cellular services by eliminating the need for a physical SIM. They offer users the convenience of managing multiple mobile subscriptions without swapping physical SIM cards.

Breakup by Solution:

• Hardware
• Connectivity Services

Hardware dominates the market

The report has provided a detailed breakup and analysis of the market based on the solution. This includes hardware and connectivity services. According to the report, hardware represented the largest segment.

The hardware segment encompasses the physical components required for technology. This includes the manufacturing and supplying eSIM chips, modules, and devices equipped with embedded SIM technology. Hardware solutions are crucial for device manufacturers and IoT integrators who must embed eSIM capabilities into their products. These hardware solutions provide the foundation for seamless connectivity, enabling devices to access and switch between mobile networks without a physical SIM card.

On the contrary, the connectivity services segment comprises the digital infrastructure and platforms that facilitate the remote provisioning, activation, and management of eSIMs. Connectivity service providers work closely with network operators and device manufacturers to enable remote SIM provisioning and over-the-air updates, allowing users to switch carriers and manage multiple subscriptions easily. These services are pivotal in making this technology practical and user-friendly, enabling flexible and secure connectivity for various devices and applications.

Breakup by Application:

• Connected Car
• Smartphone and Tablet
• Wearable Device
• M2M
• Others

M2M dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This include connected car, smartphone and tablet, wearable device, M2M, and others. According to the report, M2M represented the largest segment.

M2M applications involve the exchange of data between connected devices. eSIMs play a crucial role in various industries, including healthcare, logistics, agriculture, and manufacturing, by providing secure and efficient connectivity for M2M communications. These applications enable remote monitoring, predictive maintenance, and automation.

On the contrary, the adoption of this technology in connected cars has gained momentum, transforming the automotive industry. They enable vehicles to stay connected to the internet, providing real-time navigation, infotainment, and remote diagnostics. They also facilitate Over-The-Air (OTA) updates for software and firmware, enhancing the car's functionality and security.

Furthermore, smartphones and tablets are among the primary beneficiaries of this technology. eSIMs eliminate the need for physical SIM cards, allowing users to switch carriers seamlessly and enabling dual-SIM functionality. This simplifies international travel, as users can activate local data plans remotely, reducing roaming charges.

Besides, the product integration in wearable devices, such as smartwatches and fitness trackers, empowers these gadgets to operate independently without relying on a paired smartphone for connectivity. Wearables with this technology offer features like standalone calls, messaging, and internet access, enhancing user convenience and mobility.

Breakup by Industry Vertical:

• Automotive
• Consumer Electronics
• Manufacturing
• Telecommunication
• Transportation and Logistics
• Others

Automotive dominates the market

The report has provided a detailed breakup and analysis of the market based on the industry vertical. This includes automotive, consumer electronics, manufacturing, telecommunication, transportation and logistics, and others. According to the report, automotive represented the largest segment.

The automotive industry has witnessed a significant transformation with the integration of technology. Connected cars leverage them to provide advanced telematics, in-car entertainment, and navigation services. The product enables seamless connectivity, OTA updates, and enhanced safety features, driving the evolution of autonomous and smart vehicles.

On the other hand, the product has made a substantial impact in consumer electronics. From smartphones to tablets, they offer users the convenience of managing multiple network subscriptions without physically switching SIM cards. This technology extends to other devices like laptops, smart TVs, and gaming consoles, enhancing the user experience.

Moreover, the manufacturing industry leverages technology for M2M communications to optimize processes and monitor industrial equipment. eSIM-enabled devices facilitate remote monitoring, predictive maintenance, and real-time data analysis, streamlining production and reducing downtime.

Besides, product adoption in the telecommunication sector allows operators to offer flexible plans and improve customer experiences. They enable easy activation and remote provisioning of services, simplifying the onboarding process for subscribers.

Additionally, they are vital in fleet management, asset tracking, and supply chain optimization in the transportation and logistics industry. eSIM-enabled devices provide seamless connectivity for efficient logistics operations, real-time tracking, and route optimization.

With the growing demand for connected devices and IoT solutions across these diverse industry verticals, the market is poised for continued expansion and innovation. As more industries recognize the benefits of this technology, its adoption is likely to drive further advancements and transformative changes across sectors.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

North America exhibits a clear dominance, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Russia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

In North America, the adoption of technology has been robust. The region's tech-savvy population and strong smartphone penetration have driven the demand for eSIM-enabled devices. The automotive industry's rapid progress in connected cars and the growing interest in IoT applications have further bolstered product adoption. North America's well-established telecommunications infrastructure and the presence of major device manufacturers and service providers contribute to the region's market growth. Additionally, supportive government initiatives and consumer awareness about the benefits of the product have played a pivotal role in expanding the market.

Furthermore, the Asia Pacific region is experiencing significant growth in the market. The massive population and increasing smartphone adoption in countries like China and India create a substantial demand for eSIM-enabled devices. The region's expanding IoT ecosystem and the implementation of 5G networks further drive the adoption of technology across various industries. Moreover, the region's increasing focus on smart cities, automotive advancements, and digital transformation initiatives present vast opportunities for product applications. As a result, the Asia Pacific is poised to become a prominent market for these solutions, offering substantial growth potential in the foreseeable future.

Competitive Landscape:

Top companies are pivotal in strengthening the market through various strategic initiatives. They are investing heavily in research and development to improve the technology, making it more efficient, secure, and compatible with various devices. These companies partner with device manufacturers and network operators to promote product integration in smartphones, wearables, and IoT devices. Moreover, these companies are expanding their global reach by establishing collaborations with international carriers, enabling seamless cross-border connectivity for users. They actively participate in industry events and forums to advocate for product adoption and educate consumers about its benefits. Furthermore, these companies are developing innovative solutions to address specific industry needs, such as automotive connectivity, smart city applications, and IoT deployments. By offering comprehensive services, top companies are driving market awareness, simplifying the onboarding process, and fostering user trust, thus contributing significantly to the overall growth and acceptance of the technology.

The report has provided a comprehensive analysis of the competitive landscape in the eSIM market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Apple Inc.
• Arm Limited
• AT&T Inc.
• Deutsche Telekom AG
• Giesecke+Devrient GmbH
• IDEMIA
• Infineon Technologies AG
• NTT Docomo Inc. (Nippon Telegraph and Telephone Corporation)
• NXP Semiconductors N.V.
• Samsung Electronics Co. Ltd.
• Sierra Wireless
• STMicroelectronics
• Telefónica S.A.
• Thales Group
• Vodafone Group Plc

Recent Developments:

• Apple launched its dual SIM support feature for the iPhone 11 series, including an eSIM and a physical SIM card. This move marked Apple's first step into eSIM technology, allowing users to activate a secondary line without a physical SIM card.
• Arm collaborated with Vodafone to launch a customized integrated SIM (iSIM) solution for IoT devices. The technology allows devices to be securely provisioned and managed remotely, making it easier for manufacturers to embed eSIM functionality in their IoT products.
• AT&T announced the launch of its consumer eSIM support, allowing compatible devices, including iPhones and iPads, to use the technology on its network. This gave customers the flexibility to activate and manage multiple lines on their devices without needing physical SIM cards.

eSIM Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the eSIM market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global eSIM market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the eSIM industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.