The eSIM Market size is projected to reach US$ 7,238.61 million by 2031 from US$ 849.33 million in 2023. The market is expected to register a CAGR of 30.7% in 2023–2031. The rising adoption of IoT technology among customers is likely to remain a key eSIM market trend.
The eSIM market is growing at a rapid pace due to the growing focus on remote SIM provisioning for M2M and the rising demand for innovative consumer electronics devices among consumers. The market is expanding steadily, driven by favorable government regulations for M2M communication. Moreover, the rising demand for smart solutions is providing lucrative opportunities for market growth.
The eSIM, or embedded subscriber identity module, is a digital SIM card that is effortlessly integrated into a mobile device such as a tablet or smartphone. In contrast to traditional physical SIM cards, which may be removed and replaced, an eSIM is seamlessly incorporated into the device's hardware infrastructure and can be carefully programmed with a wide range of mobile network profiles. This functionality allows consumers to smoothly switch between carriers and easily launch or adjust their mobile plans without the requirement for physical SIM card replacement.
The introduction of eSIM in the automotive industry has allowed for greater flexibility in equipping trucks and automobiles with cellular connectivity through the implementation of additional functions. The automotive sector is planning to adopt the next generation of connected automobiles by supporting the GSMA Embedded SIM Specification for improved vehicle connectivity. This is intended to improve security for a variety of linked services. However, eSIM holds immense potential in the automotive industry and is anticipated to create growth opportunities during the forecast period.
Remote provisioning allows users to download an operator profile to an in-market SIM and alter or delete subscriber identity module (SIM) profiles without physically accessing the SIM card. The eSIM card is an essential component for machine-to-machine (M2M) connections, which include simple and seamless mobile connections for all forms of linked devices. M2M requires pervasive connectivity across geographic regions. eSIM eliminates the inconvenience of changing service providers, increasing operational efficiency, and functions in a controlled and secure environment. The most recent eSIM cards ensure profile compatibility and provide a major platform for gamers to collaborate on common grounds.
Various smart solutions, such as electric vehicles, smart cities, and smart meters, are increasingly being used around the world due to the flexibility and connection provided by loT infrastructure, accelerating smart cities and infrastructure growth in emerging nations. The evolution and expansion of networks, the lower cost of hardware components, including actuators and sensors, and the emergence of new business models are a few key factors that introduce services such as smart grid deployment, automatic security systems, connected cars, and many others. This resulting an increased investment in developing innovative intelligent solutions for customers. Thus, the increased need for smart solutions among numerous industries such as automotive, energy and utilities, manufacturing, retail, consumer electronics, transportation and logistics, and others are creating opportunities for eSIM market participants during the forecast period.
Key segments that contributed to the derivation of the eSIM market analysis are application and vertical.
The geographic scope of the eSIM market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. In terms of revenue, North America accounted for the largest eSIM market share, due to technological advancement.
Asia Pacific is projected to expand at a significant CAGR during the forecast period. The market in this region is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. The presence of key smartphone players such as Huawei Technologies Co Ltd and Samsung Electronics Co Ltd have developed eSIM handsets, which accelerate the adoption of eSIM in the smartphone market. Moreover, eSIM is also represented as a future of SIM technology for connected devices. Additionally, various OEMs from countries such as China and India are creating eSIM solutions and forming collaborative development teams throughout the ecosystem to create tactical development paths. For example, in June 2021, IDEMIA, an eSIM manufacturing company, established a new production facility in India, which is expected to expand worldwide eSIM production capacity. According to German digital solutions firm Giesecke+Devrient (G&D), 25-30% of smartphones will feature eSIM functionality by the end of 2024. However, expansion of the smartphone industry associated with growing digitalization is creating opportunities for the market during the forecast period.
The regional trends and factors influencing the eSIM Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses eSIM Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 849.33 Million |
| Market Size by 2031 | US$ 7,238.61 Million |
| Global CAGR (2023 - 2031) | 30.7% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Application
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The eSIM Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the eSIM Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The eSIM market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for eSIM and strategies:
The “eSIM Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The global eSIM market was estimated to be US$ 849.33 million in 2023 and is expected to grow at a CAGR of 30.7% during the forecast period 2023 - 2031.
The growing focus on remote SIM provisioning for M2M and rising demand for innovative consumer electronics devices among consumers are the major factors that propel the global eSIM market.
The rising adoption of IoT technology among customers is anticipated to play a significant role in the global eSIM market in the coming years.
The key players holding majority shares in the global eSIM market are Deutsche Telekom AG, Thales SA, IDEMIA France SAS, Infineon Technologies AG, and NXP Semiconductors NV.
The global eSIM market is expected to reach US$ 7,238.61 million by 2031.
The incremental growth expected to be recorded for the global eSIM market during the forecast period is US$ 6,389.28 million.