eSIM Market Analysis

eSIM Market Overview

The eSIM Market Size was valued at USD 0.65 billion in 2021. The eSIM market industry is projected to grow from USD 0.85 Billion in 2022 to USD 5.77 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 31.40% during the forecast period (2024 - 2030).

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Figure 1: ESIM Market Size, 2022-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

ESIM Market Trends

M2M systems provide benefits that include minimal power consumption, remote operation, real-time data monitoring, and identification of service timing. Due to its benefits, M2M systems have been used by several industries, including manufacturing, security, telemedicine, robotics, automotive, industrial, and utilities. It calls for improved network connectivity, and eSIM is essential since it enables wireless communication across mobile networks in a linked system. Customers' desire to possess connected homes fuels demand for smart electronics, including printers, smart glasses, smartphones, tablets, laptops, and wearables.

Excellent network connectivity is made possible through eSIM integration in consumer electronics, which is essential for linked homes. ESIM's straightforward subscription management improves the user experience throughout the product's lifespan, product differentiation, remote access, monitoring, simplified logistics, and high-quality network connectivity. As a result, eSIM is now being used in various applications, eventually expanding the market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

IoT adoption is rising, and introducing 5G technology opens up enormous opportunities. Network service providers have a variety of alternatives thanks to the Internet of Things, which also generates new sectors. IoT is altering the mobile industry's ecosystem as a result. The eSIM market for automated and intelligent appliances has surpassed that of consumer electronics like tablets, smartphones, and laptops. Smartphones and wearables are used by various industry verticals, including home appliances, healthcare, agricultural, and utility monitoring systems, autonomous drones, linked cars, and industrial machinery.

Since eSIM technology can easily be incorporated into smaller gadgets like fitness bands, wearables, and smartwatches, it is the future of 5G. Businesses that use IoT systems with cellular-enabled devices may adapt their systems to accept 5G and benefit from it thanks to the adoption of eSIM. It is projected that as smart gadgets become more common in both business and consumer settings, there will be a significant increase in mobile and wireless communication demand. This opens up a new source of revenue for communication service providers when customers buy data-centric devices to increase the amount of data included in their contracts.

It is also projected that rising smartphone adoption in nations like China, India, Japan, and the U.S. would propel eSIM market expansion. For instance, sales of eSIM-capable smartphones, mostly driven by Apple, Inc.'s iPhone, are estimated to reach 3.5 million devices in India by 2020. In collaboration with several network service providers, smartphone manufacturers, including Google, Apple, Inc., Motorola Mobility LLC, and Samsung Electronics Co., Ltd., have begun integrating eSIM technology into their devices. For instance, to offer eSIM service, Apple, Inc. has worked with six service providers: MTX Connect, Ubigi, GigSky, Soracom Mobile, Truphone, and Redtea Mobile.

Figure 3: ESIM MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

ESIM Market Segment Insights

ESIM End-User Insights

Based on End-User, the eSIM market segmentation includes Automotive, Energy & Utilities, Manufacturing, Retail, Consumer Electronics, Transportation & Logistics. Consumer electronics was the market's largest category in 2021, and growth is anticipated during the forecast period. One of the key factors influencing development, innovation, and disruption in various technological businesses continues to be the consumer electronics sector. It's believed that eSIM will revolutionize consumer electronics applications. The growth of eSIMs in consumer electronic applications is driven by advantages, including increased connection, high dependability, and improved safety. The eSIM-enabled systems provide remote SIM profile provisioning and automated interoperability across different SIM carriers and connecting platforms. The running chain of these systems now includes several network service providers, making it more difficult to manage the security of these systems. The eSIM collects and stores Mobile Network Operators' (MNOs') credentials in the device's built-in software, leaving them open to security lapses.

ESIM Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific ESIM market accounted for USD 0.27 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Leading smartphone manufacturers like Huawei and Samsung Electronics have introduced eSIM handsets, gaining traction in the smartphone industry and establishing eSIM as the standard SIM technology for future connected devices. Additionally, several OEMs are creating eSIM solutions and assembling collaborative development teams from across the ecosystem in nations like China and India to forge tactical development avenues. One eSIM manufacturer, IDEMIA, has constructed a new production facility in India, which is anticipated to enhance the production capacity of eSIMs internationally. In three years, starting in 2021, 25–30% of smartphones are anticipated to have eSIM functionality, according to German digital solutions company Giesecke+Devrient (G&D).

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Similarly, a CAGR of 10.1% is predicted for the European eSIM market throughout the projection period. These areas have been early adopters of cutting-edge technology. They also house some of the most well-known market players, including Giesecke+Devrient Mobile Security GmbH, STMicroelectronics, and NXP Semiconductors N.V. The incidence of smart connected gadgets and connected cars is growing in these locations. It is estimated that these two regions will continue to dominate over the projected time due to these characteristics. Further, the German eSIM market held the largest market share, and the U.K. eSIM market was the fastest-growing market in the European Region.

The market for eSIMs in North America, which currently has the largest market share, is anticipated to expand at a CAGR of 11.5% over the projected period. The rise is a result of the Region's rapid technical improvements and the widespread presence of network providers. Similarly, it is expected that Europe will lead the eSIM industry, with a market value of $2,070.3 in 2021.

ESIM Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the eSIM industry. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a market that is becoming increasingly competitive, eSIM industry competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics used by the eSIM industry to serve customers and increase the eSIM market sector. The eSIM industry has recently given medicine some of the most important advantages. The eSIM market major player such as STMicroelectronics (Switzerland), Infineon Technologies AG (Germany), NXP Semiconductors (Netherlands), Deutsche, Telekom AG (Germany), Gemalto NV (Netherlands), NTT Docomo Inc. (Japan), and others are working on expanding the market demand by investing in research and development activities.

The largest revenue-generating telecommunications provider in Europe is Deutsche Telekom AG, a German firm with its headquarters in Bonn. In partnership with Bayerische Motoren Werke AG, Deutsche Telekom AG announced the introduction of 5G in-car and personal eSIM networking solutions in September 2021. Vehicle communication with the customer's mobile network was connected through 5G using personal eSIM and MobilityConnect by Deutsche Telekom AG and Bayerische Motoren Werke AG.

A worldwide technology business headquartered in France's Courbevoie is called IDEMIA. It offers identity-related security services and distributes software and hardware for biometric identification, including face recognition, to governments and commercial businesses. The opening of a new production facility by eSIM manufacturer IDEMIA in India is anticipated to expand eSIM production capacity internationally. In three years, starting in 2021, 25–30% of smartphones are anticipated to have eSIM functionality, according to German digital solutions company Giesecke+Devrient (G&D).

Key Companies in the eSIM market include

ESIM Industry Developments

ESIM Market Segmentation

ESIM End User Outlook

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  Automotive

  
  


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  Energy & Utilities

  
  


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  Manufacturing

  
  


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  Retail

  
  


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  Consumer Electronics

  
  


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  Transportation & Logistics

  
  

ESIM Regional Outlook