An eSIM or embedded SIM is a digital SIM built directly into smartphones, tablets, and other connected devices that allows users to automatically switch networks without physically inserting or swapping a SIM card. eSIM provides enhanced security and flexibility for users, especially to OEMs manufacturing IoT devices in large volumes. The global eSIM Market is estimated to be valued at US$ 14717.07 in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of the eSIM market is the rising penetration of IoT devices. With the proliferation of connected devices ranging from wearables to automotive telematics, the requirement of embedded SIMs is growing substantially. eSIMs provide hassle-free connectivity to IoT devices without requiring physical SIM cards. This enables OEMs to integrate eSIM connectivity during the manufacturing process itself. Moreover, eSIM allows seamless switching of connectivity for IoT devices depending on the coverage area. As the adoption of IoT solutions increases across various industries, the need for embedded connectivity will further fuel the demand for eSIM in the coming years. Connected cities, autonomous vehicles, smart home automation are some key application areas where eSIM deployment is anticipated to see strong growth over the forecast period.
SWOT Analysis
Strength: eSIM allows seamless connectivity from one operator to another without needing to swap or replace the physical SIM card. This provides convenience to the user.
Weakness: The adoption of eSIM technology requires buy-in from network operators and device manufacturers. Legacy systems may also pose integration challenges initially.
Opportunity: The growth of IoT applications and connected devices provides a sizable market opportunity for eSIM. Many consumer electronics and automotive OEMs are expected to support eSIM going forward.
Threats: Security concerns around eSIM profiles being compromised could slow down adoption. Standardization across regions may take time to finalize.
Key Takeaways
The global eSIM market size is expected to witness high growth over the forecast period driven by increasing penetration of IoT devices and automation. eSIM allows remote SIM provisioning without requiring a physical SIM swap and provides flexibility for connectivity management which is well-suited for IoT applications.
Regional analysis: North America accounted for the largest share of the eSIM market in 2023 owing to strong presence of leading technology companies involved in development of eSIM-supported devices for automotive and consumer electronics segments. Asia Pacific is expected to grow at the fastest pace during the forecast period with China and India emerging as major markets for eSIM-enabled IoT connections.
Key players: Key players operating in the eSIM market are Tesla, Zoox, Waymo, Cruise, Argo AI, Aurora, Motional, Pony.ai, Nuro, Embark, TuSimple, Plus, Inceptio Technology, WeRide, Pronto.ai, Vay, Phantom Auto, Ottopia, Cognata, and AutonomouStuff. Major automotive OEMs and technology companies are actively working on integrating eSIM for connectivity management in self-driving vehicles. Standardization efforts by GSMA are also supporting the adoption of eSIM globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it