eSIM Market

Global eSIM Market:

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 growth.

eSIM Market Analysis:

• Major Market Drivers: The increasing adoption of smartphones is primarily driving the growth of the market. Furthermore, the emergence of the Internet of Things (IoT) is significantly contributing to the adoption of eSIM in various IoT devices.
• Key Market Trends: The escalating product demand in healthcare applications, including medical devices and remote patient monitoring systems, is offering lucrative growth opportunities to the overall market. Moreover, 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.
• Competitive Landscape: Some of the leading players operating in the global 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, and Vodafone Group Plc., among others.
• Geographical Trends: According to the eSIM market statistics by IMARC, North America accounted for the largest market share. In the region, the adoption of technology has been robust. The region's tech-savvy population and strong smartphone penetration are primarily catalyzing the demand for eSIM-enabled devices.
• Challenges and Opportunities: Challenges in the eSIM market include regulatory complexities and interoperability issues among different devices and networks. Opportunities lie in expanding IoT applications and the potential for enhanced customer convenience through remote provisioning and seamless connectivity across various devices and regions.
   

eSIM Market Trends:

Increasing Product Demand in M2M Operations

The increasing demand for eSIMs in Machine-to-Machine (M2M) operations is catalyzing the market. M2M communication involves exchanging data between connected devices without human intervention. eSIMs play a pivotal role in M2M operations by providing a seamless and secure connectivity solution. As M2M deployment is expanding, the need for eSIM-enabled devices is rising to enable efficient data exchange and communication between machines. For instance, in March 2024, the Telecom Regulatory Authority of India (TRAI) released recommendations on ‘Usage of Embedded SIM for Machine-to-Machine (M2M) Communications’. These recommendations are aimed at streamlining the regulatory landscape of M2M embedded SIM (eSIM) in India. Through these recommendations, the Authority laid emphasis on ensuring security by way of proper Know Your Customer (KYC), which is essential for ensuring network security, mitigating fraud risks, and enhancing the overall integrity of the M2M eSIM ecosystem. Besides this, the rapid expansion in the M2M connection market is positively impacting the eSIM market outlook. For instance, according to IMARC, the global machine-to-machine (M2M) connections market size reached US$ 21.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 30.6 Billion by 2032, exhibiting a growth rate (CAGR) of 4% during 2024-2032. 

Growing Penetration of 5G Networks

The growing penetration of the 5G network is significantly bolstering the eSIM market by enabling faster data speeds, lower latency, and greater connectivity reliability. eSIMs play a crucial role in the 5G market by enabling seamless connectivity and flexibility for devices. They allow 5G-enabled devices to easily switch between networks and operators without physical SIM card changes, supporting the deployment of IoT devices, smart infrastructure, and connected vehicles with greater efficiency and scalability. Moreover, the ongoing development of 5G networks and the proliferation of IoT devices are expected to further increase the integration of eSIM in smartphones and other connected devices. According to Ericsson, the number of cellular IoT connections with critical IoT and broadband globally in 2022 was approximately 1.5 billion. In five years, the forecast is that the number of cellular IoT connections with the same connection type will continue to rise steadily each year, up to 3.3 billion. Additionally, the expansion in the 5G network sector is propelling the eSIM market demand. For instance, according to a report by IMARC, the global private 5G network market size reached US$ 2.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 32.4 Billion by 2032, exhibiting a growth rate (CAGR) of 31.4% during 2024-2032. Such a significant growth in the 5G market is anticipated to positively favor the eSIM market in the coming years.

Technological Advancements

Technological advancements in the eSIM market are transforming connectivity management. Advanced eSIM platforms offer dynamic subscription management, allowing seamless switching between mobile networks for optimal performance and cost efficiency. Furthermore, integration with IoT ecosystems and cloud-based solutions further enhances scalability and operational flexibility, supporting diverse applications from smart devices to industrial automation. Additionally, various key market players are increasingly investing in developing robust and more advanced eSIMs. For instance, in November 2022, Mobilise, a developer in eSIM as a Service and a telecom software supplier, launched its eSIM software development kit (SDK) in response to the increased demand for digital services from service providers (SPs) and their clients. The SDK enables SPs to provide clients with global connections within their current application, including an in-app eSIM activation feature. In the same month, STMicroelectronics collaborated with Thales, which powers secure, contactless convenience in Google Pixel 7. The ST54K single-chip NFC controller and secure element combine with Thales secure OS for superior performance in embedded SIM, transit ticketing, and digital car-key applications. These advancements are anticipated to bolster the eSIM market share in the coming year.

Global 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.

Breakup by Solution:

• Hardware
• Connectivity Services
   

Hardware dominates the market

The eSIM market 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.

Breakup by Application:

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

M2M dominates the market

The eSIM market research report has provided a detailed breakup and analysis of the market based on the application. This includes 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. Furthermore, significant expansion in M2M connections is offering lucrative growth opportunities to the overall market. For instance, in 2020, there were 8.9 billion machine-to-machine (M2M) connections globally. That was a 20% increase from 2019. This in turn provides a positive outlook to the eSIM market industry.

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. Furthermore, the escalating adoption of semi and fully autonomous vehicles is further catalyzing the market for eSIMs as they enable seamless connectivity and data management. For instance, in 2019, there were some 31 million cars with at least some level of automation in operation worldwide. It is expected that their number will surpass 54 million in 2024.

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, Russia, 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. Additionally, the deployment of 5G networks in North America has been gaining momentum. eSIM technology complements the capabilities of the 5G network by providing seamless connectivity and making it easier for consumers to switch between carriers and plans. According to Cisco Systems, North America had the most 5G connections made using wearable devices in 2022. The 439 million connections in North America were 222 million more than those made to 4G networks in 2017. Additionally, the presence of leading market players in the region is also favoring the market growth. For instance, in December 2022, Grover, one of the top subscription providers for consumer technology, unveiled Grover Connect, an MVNO for clients renting technology in the United States. The country clients can quickly activate any eSIM-enabled technology gadget using Grover Connect. Also, Grover partnered with Gigs, one of the global leaders in telecom-as-a-service platforms in the world that enables any business or brand to become an MVNO, to introduce this innovative new offering. Such collaborations among the leading market players are anticipated to propel the eSIM market revenue in the coming years.

Competitive Landscape:

Top companies are pivotal in strengthening the market through various strategic initiatives. They are investing heavily in research and development to improve 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
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global eSIM Market News:

• June 2024: STMicroelectronics introduced the first embedded SIM (eSIM) in the industry to meet the incoming SGP.32 GSMA standard for eSIM IoT deployment. The ST4SIM-300 introduces special features to manage the mass rollout of IoT devices connected to cellular networks.
• March 2024: Vodafone Idea launched eSIM services for its prepaid customers in Mumbai. As per Vodafone Idea, its eSIM for prepaid customers is accessible to iOS and Android users, and can be availed of on several handsets, including Apple iPhone XR and above models, Vivo X90 Pro, Nokia G60 and Nokia X30, as well as Samsung flagships such as Galaxy Z Flip, Galaxy Fold, Galaxy Z Fold 2, and others.
• February 2024: G+D and the telecommunications company China Unicom signed a Memorandum of Understanding (MoU) to establish a strategic partnership in the areas of eSIM technology and services. The agreement aims to establish a comprehensive and in-depth cooperation to promote the further development of eSIM technology and explore new use cases in vertical areas.

Global eSIM Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry 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 report 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.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.