The global eSIM Market is estimated to be valued at US$ 14717.07 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
eSIM is an embedded SIM that enables users to activate a cellular data plan from a carrier on their mobile devices remotely via over-the-air technology. eSIM eliminates the need for a physical SIM card and allows tablets, wearables and other connected devices to easily switch between mobile plans and wireless carriers.
Market key trends:
One of the major trends in the eSIM market size is the growing adoption of eSIM technology in IoT devices. eSIM allows remote provisioning of connectivity for IoT devices without the need for a physical SIM card. This makes the maintenance and upgrading of connectivity plans more cost effective for stakeholders. Moreover, eSIM enables hassle-free global roaming of IoT devices. As the demand for connected IoT devices increases exponentially, the need for embedded SIM technology is also projected to rise substantially over the forecast period.
SWOT Analysis
Strength: eSIM enables faster and easier device setup, provisioning and subscription management from anywhere through over-the-air updates. This eliminates the need to insert physical SIM cards making device activation convenient for users.
Weakness: Technical glitches during over-the-air provisioning can lead to connectivity issues which impairs user experience. Also, lack of standardized regulations around eSIM adoption poses security concerns.
Opportunity: Growing trend of IoT connectivity is widening the scope of eSIM adoption in wearables, tablets, laptops etc. besides smartphones. This will drive the demand for integrated SIM technology.
Threats: Conventional SIM card manufacturers and mobile network operators are wary of transitioning to eSIM technology fearing loss of control and revenue. Strict regulatory framework around eSIM can also limit market expansion.
Key Takeaways
The global eSIM market is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing demand for streamlined device management and flexible connectivity plans. Being a nascent technology, growing adoption of IoT devices and rapid deployment of 5G networks will further propel the eSIM market growth.
Regional analysis
North America is expected to dominate the eSIM market holding around 35% share during the forecast period owing to large-scale trials and commercial availability of eSIM in the US. Asia Pacific is poised to grow at the fastest rate led by China, Japan and South Korea. Improving connectivity infrastructure and government initiatives to develop smart cities are fueling the demand for eSIM in industrial and automotive applications across the region.
Key players
Key players operating in the eSIM market are Infineon Technologies AG, STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Thales Group, KORE Wireless, Arm Limited, Truphone Limited, Workz Group, Sierra Wireless, NXP Semiconductors, and AT&T. Major players are investing in new product development and collaborating with mobile operators, smartphone OEMs as well as IoT device manufacturers to gain foothold in the high potential eSIM industry.
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