Global Automotive eSIM Market Overview:
As per MRFR analysis, the Automotive eSIM Market Size was estimated at 12.36 (USD Billion) in 2022. The Automotive eSIM Market Industry is expected to grow from 12.89 (USD Billion) in 2023 to 18.8 (USD Billion) by 2032. The Automotive eSIM Market CAGR (growth rate) is expected to be around 4.28% during the forecast period (2024 - 2032).
Key Automotive eSIM Market Trends Highlighted
The rising demand for connected cars, the proliferation of IoT devices, and the increasing need for improved vehicle safety and security are driving the growth of the global automotive eSIM market.Key market drivers include the growing adoption of telematics systems, the increasing prevalence of connected cars, and the rising demand for over-the-air (OTA) updates. These factors are expected to continue to drive market growth in the coming years.Opportunities to be explored or captured include the development of new eSIM applications and services, the expansion into new markets, and the formation of strategic partnerships with other players in the automotive industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive eSIM Market Drivers
Rising Demand for Advanced Driver-Assistance Systems (ADAS)
The increasing adoption of ADAS technologies in vehicles is a major driver of growth in the Automotive eSIM Market Industry. ADAS features, such as adaptive cruise control, lane departure warning, and automatic emergency braking, require high-speed connectivity to function effectively. Automotive ESIMs provide the necessary connectivity for these systems, allowing them to communicate with other vehicles, infrastructure, and the cloud. As the demand for ADAS-equipped vehicles continues to rise, so too will the demand for automotive ESIMs.
Growing Penetration of Connected Cars
The growing popularity of connected cars is another key driver of growth in the Automotive eSIM Market Industry. Connected cars offer a range of features and services that require high-speed connectivity, such as remote diagnostics, over-the-air updates, and infotainment services. Automotive ESIMs provide the connectivity that these features and services rely on, making them an essential component of connected cars.
Increasing Adoption of Electric Vehicles (EVs)
The increasing adoption of EVs is also driving growth in the Automotive eSIM Market Industry. EVs require high-speed connectivity for features such as remote charging, battery management, and over-the-air updates. Automotive ESIMs provide the connectivity that these features rely on, making them an essential component of EVs.
Automotive eSIM Market Segment Insights:
Automotive eSIM Market Vehicle Type Insights
The Automotive eSIM Market is segmented by Vehicle Type into Passenger Cars, Commercial Vehicles, and Two Wheelers. Among these segments, Passenger Cars hold the largest market share, accounting for around 60% of the total market revenue in 2023. This dominance is attributed to the increasing production and sales of passenger cars globally, coupled with rising consumer demand for advanced connectivity and infotainment features. Commercial Vehicles, including trucks, buses, and vans, represent a significant portion of the market, driven by the growth in e-commerce and logistics industries.
Two Wheelers, such as motorcycles and scooters, are expected to witness a steady growth in the coming years, primarily due to their affordability and convenience in congested urban areas. The increasing adoption of electric vehicles across all vehicle types is expected to further drive the demand for Automotive eSIM solutions, as they enable remote monitoring and diagnostics, over-the-air updates, and enhanced safety features.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive eSIM Market Connection Type Insights
The Automotive eSIM Market is segmented by Connection Type into Embedded, Tethered, and Integrated. Among these, the Embedded segment is expected to hold the largest market share in 2023. The growth of this segment can be attributed to the increasing demand for connected cars and the rising adoption of embedded SIM (eSIM) technology. eSIMs are embedded directly into the vehicle's hardware, eliminating the need for a physical SIM card. This provides several benefits, such as improved security, remote provisioning, and over-the-air updates.
The Tethered segment is expected to witness significant growth in the coming years due to the increasing popularity of smartphones and the growing adoption of tethering technology.Tethering allows vehicles to connect to the internet using a smartphone's cellular data connection. The Integrated segment is expected to grow steadily, driven by the increasing demand for integrated infotainment systems and the rising adoption of advanced driver assistance systems (ADAS).
Automotive eSIM Market Connectivity Standard Insights
The Automotive eSIM Market is segmented based on Connectivity Standard into 4G, 5G, LTE-M, and NB-IoT. Among these segments, 5G is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of the 5G segment can be attributed to the increasing adoption of 5G technology in the automotive industry, particularly for connected cars and autonomous driving applications. 4G is expected to be the second-largest segment in 2023, followed by LTE-M and NB-IoT. The market growth for 4G, LTE-M, and NB-IoT is driven by the rising demand for cellular connectivity in vehicles for various applications, such as remote diagnostics, fleet management, and infotainment systems.
Automotive eSIM Market Application Insights
The Automotive eSIM Market is segmented by Application into Telematics, Infotainment, Safety Security, and Diagnostics. Telematics is the largest segment, accounting for over 40% of the Automotive eSIM Market revenue in 2023. The growth of this segment is attributed to the increasing demand for connected cars and the adoption of advanced driver assistance systems (ADAS). Infotainment is the second-largest segment, with a market share of over 30%.
The growth of this segment is driven by the increasing popularity of in-vehicle entertainment systems and the integration of smartphones and other devices with vehicles.Safety Security is the third-largest segment, with a market share of over 20%. The growth of this segment is driven by the increasing demand for safety features such as airbags, anti-lock braking systems (ABS), and electronic stability control (ESC). Diagnostics is the smallest segment, with a market share of less than 10%. The growth of this segment is driven by the increasing adoption of telematics and the need for remote vehicle diagnostics.
Automotive eSIM Market Provider Type Insights
The Automotive eSIM Market segmentation by Provider Type comprises Mobile Network Operators, Telematics Service Providers, and OEMs. Mobile Network Operators are expected to dominate the market with a revenue share of around 60% by 2024 due to their extensive network coverage and established customer base. Telematics Service Providers are likely to witness significant growth owing to the rising adoption of connected vehicles and the increasing demand for telematics services. OEMs are projected to gain market share as they integrate eSIM technology into their vehicles to offer value-added services and enhance customer convenience.
Automotive eSIM Market Regional Insights
The Automotive eSIM Market is segmented into North America, Europe, APAC, South America, and MEA. The North American region is expected to hold the largest market share due to the presence of major automotive manufacturers and a high demand for connected vehicles. The European region is expected to witness significant growth due to government initiatives promoting the adoption of electric vehicles. The APAC region is expected to grow rapidly due to the increasing demand for automobiles in emerging economies such as China and India. The South American and MEA regions are expected to have a moderate growth rate due to the presence of a smaller automotive industry and lower adoption rates of connected vehicles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive eSIM Market Key Players And Competitive Insights:
Major players in the Automotive eSIM Market industry are constantly innovating and developing new technologies to stay ahead of the competition. Leading Automotive eSIM Market players are investing heavily in research and development to create new products and services that meet the evolving needs of customers. The Automotive eSIM Market industry is also seeing a trend towards consolidation, with larger companies acquiring smaller companies to gain market share.
The Automotive eSIM Market competitive landscape is expected to remain fragmented over the next few years, with a number of small and medium-sized companies competing for market share. However, the increasing presence of large global players is likely to put pressure on smaller companies and lead to further consolidation in the industry.One of the key competitors in the Automotive eSIM Market is Qualcomm. Qualcomm is a global leader in the development and supply of semiconductors and software for the mobile and automotive industries. The company's automotive solutions include a wide range of products, such as telematics, infotainment, and safety systems.
Qualcomm is also a major supplier of cellular modems for automotive applications, and its Automotive eSIM solution is designed to provide secure and reliable connectivity for connected cars.Another major competitor in the Automotive eSIM Market is Gemalto. Gemalto is a global leader in digital security, with a focus on providing solutions for the Internet of Things (IoT). The company's Automotive eSIM solution is designed to provide secure connectivity for connected cars, and it includes a range of features such as remote provisioning, over-the-air updates, and secure storage of sensitive data.
Key Companies in the Automotive eSIM Market Include
- Orange
- VEON
- Vodafone
- AT
- TELENOR
- Deutsche Telekom
- Telefonica
- Verizon
- NTT Docomo
- China Mobile
- Turkcell
- China Telecom
- SoftBank
- China Unicom
- KDDI
Automotive eSIM Market Industry Developments
The global automotive eSIM market is projected to reach USD 18.8 billion by 2032, exhibiting a CAGR of 4.28% during the forecast period (2024-2032). The growing adoption of connected cars and the increasing demand for vehicle safety and security features are driving the market growth. Additionally, government regulations mandating the installation of eSIMs in new vehicles are further propelling the market expansion.Key recent developments in the automotive eSIM market include:- In 2023, Qualcomm Technologies, Inc. launched the Snapdragon Automotive 5G Modem-RF Gen 2 Platform, designed to support C-V2X and eSIM capabilities for enhanced vehicle connectivity.- In 2024, Verizon announced a partnership with Google to offer embedded eSIM technology in new vehicles, enabling seamless connectivity and access to advanced telematics services.These developments indicate the growing momentum and innovation in the automotive eSIM market as players strive to enhance vehicle connectivity and safety features.
Automotive eSIM Market Segmentation Insights
Automotive eSIM Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Two Wheelers
Automotive eSIM Connection Type Outlook
- Embedded
- Tethered
- Integrated
Automotive eSIM Connectivity Standard Outlook
Automotive eSIM Application Outlook
- Telematics
- Infotainment
- Safety Security
- Diagnostics
Automotive eSIM Provider Type Outlook
- Mobile Network Operators
- Telematics Service Providers
- OEMs
Automotive eSIM Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
12.36 (USD Billion) |
| Market Size 2023 |
12.89 (USD Billion) |
| Market Size 2032 |
18.8 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.28% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Orange, VEON, Vodafone, AT, TELENOR, Deutsche Telekom, Telefonica, Verizon, NTT Docomo, China Mobile, Turkcell, China Telecom, SoftBank, China Unicom, KDDI |
| Segments Covered |
Vehicle Type, Connection Type, Connectivity Standard, Application, Provider Type, Regional |
| Key Market Opportunities |
Increased vehicle connectivity and automation Growing adoption of 5G technology Rising demand for telematics services Government regulations mandating eSIM connectivity Expansion of shared mobility services |
| Key Market Dynamics |
Growing demand for connected vehicles Increasing government regulations for vehicle safety Advancements in cellular technology Rising adoption of cloud-based services Proliferation of mobile devices |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive eSIM Market is expected to reach a valuation of USD 12.89 Billion in 2023 and is projected to grow at a CAGR of 4.28% to reach USD 18.8 Billion by 2032.
North America region is expected to be the dominant market for Automotive eSIM, with a market share of over 40%. North America and Europe are also significant markets, with market shares of over 20% and 15%, respectively.
Automotive eSIM is primarily used in connected cars and autonomous vehicles. It enables vehicles to connect to the internet and to other devices, allowing for a wide range of applications, including navigation, entertainment, safety, and diagnostics
The key competitors in the Automotive eSIM Market include Qualcomm, Ericsson, Gemalto, Sierra Wireless, and Telit.
Key trends and developments in the Automotive eSIM Market include the growing adoption of 5G technology, the increasing use of cloud-based services, and the development of new applications for connected vehicles.
The Automotive eSIM Market faces challenges such as the high cost of deployment, the need for interoperability between different devices and networks, and concerns over security and privacy.
The Automotive eSIM Market is expected to grow at a CAGR of 4.28% from 2024 to 2032.
The Automotive eSIM Market in North America is expected to reach a valuation of USD 2.59 Billion in 2023 and is projected to grow at a CAGR of 4.5% to reach USD 3.58 Billion by 2032.
The Automotive eSIM Market in Europe is expected to reach a valuation of USD 1.94 Billion in 2023 and is projected to grow at a CAGR of 4.1% to reach USD 2.69 Billion by 2032.
The Automotive eSIM Market in Asia Pacific is expected to reach a valuation of USD 5.36 Billion in 2023 and is projected to grow at a CAGR of 4.8% to reach USD 7.52 Billion by 2032.
