eSIM Aggregators Reshape Traditional Roaming, Propelling the Travel Sim Market to $10 Billion by 2028
The eSIM technology is revolutionizing the telecommunications industry, and eSIM aggregators are at the forefront of this transformation. Travel eSIM retail spending is predicted to rise 500% between 2023 and 2028, as leisure and business travellers embrace cheaper eSIM travel plans outside core RLAH markets.
They are reshaping traditional roaming services, propelling the travel SIM market to an estimated value of $10 billion by 2028.
The Rise of eSIM Technology travel esim market
eSIM technology is driving a 500% increase in retail spending on travel eSIM services over the next five years, according to research from Kaleido Intelligence, a leading roaming and connectivity market intelligence and consulting firm. The global travel eSIM market is projected to be worth nearly $10 billion by 2028, accounting for over 80% of the total travel SIM expenditure.
This growth is expected to drive retail spending on travel connectivity services, including roaming packages and travel SIMs, to exceed $30 billion by 2028. The shift towards ‘eSIM-first’ smartphones and the ability to offer a more seamless journey to travel SIM purchasing are key factors accelerating travel SIM adoption and eroding the existing physical travel SIM market.
The Impact of eSIM Aggregators
eSIM aggregators, along with Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs), are playing a crucial role in this market transformation. High roaming costs, growing traveler awareness of eSIM, and the future ratification of GSMA eSIM specifications for smartphones in China are driving this adoption surge for alternative eSIM solutions.
This evolving market landscape presents mobile operators with the opportunity to reshape their traditional roaming strategies, attract new customers through similar travel eSIM services, and drive usage among existing customers with compelling roaming deals.
Consumer and Business Travel & Roaming Trends
Kaleido’s new travel and roaming survey reveals a shift in the travel SIM market towards digital SIMs or eSIMs. These offer convenience and flexibility for travelers by allowing them to switch between mobile operators without physically swapping SIM cards.
Roaming remains a popular method for cellular connectivity across the 20 surveyed markets, alongside travel SIMs, Wi-Fi usage, and non-usage. Leisure travelers often use both travel SIMs and roaming services, averaging over one method per traveler. Business travelers heavily rely on roaming and roaming add-ons as their default connectivity method.
Lower cost is the main driver for choosing travel SIM alternatives to roaming. A significant proportion of respondents in various countries, such as China, India, and the UAE, expressed intent to continue using travel SIMs, eSIM plans, or other roaming alternatives in the future.
In conclusion, eSIM aggregators are playing a pivotal role in reshaping traditional roaming and propelling the travel SIM market. As eSIM technology continues to evolve and gain traction, the future of the telecommunications industry looks promising.
