Global xSIM-capable device shipments will exceed 9 billion units between 2024 and 2030, growing at a 22% CAGR during the period, according to Counterpoint’s latest eSIM Devices Market Outlook report. The projection includes all form factors, including hardware-based eSIM (eUICC), iSIM (iUICC), nuSIM, and Soft SIM. eSIM iSIM cellular devices

The industry has moved past an inflection point after the release of the US-exclusive eSIM-only iPhone in 2022 and is now entering a period of hypergrowth. This is evidenced by the growing number of OEMs launching eSIM-capable devices. Currently, smartphones have the highest eSIM adoption rate on the consumer side. However, categories such as Connected Cars, Gateways and Routers and Drones, where physical SIMs can be very difficult to manage, stand to greatly benefit from eSIM or iSIM-based connectivity. In the long run, xSIM will become the default form factor for these industries.

The increasing adoption of this technology among global mobile network operators (MNOs) also supports this hypothesis. Over 400 operators now support eSIM services globally, enabling an average of more than 50 consumer devices.

The eSIM Landscape: A Multi-Faceted Approach

The realm of eSIM encompasses various form factors, each catering to specific needs:

• Hardware-based eSIM (eUICC): This is the most prevalent form factor, employing a dedicated chip soldered onto the device’s motherboard.
• Integrated SIM (iSIM): This cutting-edge technology integrates the SIM functionality directly into the device’s processor, eliminating the need for a separate chip. iSIM boasts the potential to be even more compact and secure than eUICC.
• Soft SIM: This software-based solution leverages a portion of the device’s main processor to emulate traditional SIM card functionality. Soft SIMs offer greater flexibility but may have limitations in terms of security and performance.
• nuSIM: This novel technology utilizes a miniaturized SIM form factor that can be soldered onto the device’s PCB. It offers a space-saving alternative to traditional SIM cards while maintaining compatibility with existing infrastructure.

Commenting on eSIM’s high-growth future across industries, Research Analyst Siddhant Cally said, “Key ecosystem players have started preparing to deploy eSIM beyond their flagship devices into mid-tier segments. The new eSIM-only iPad is another sign indicating that the future is eSIM. Other use cases such as Travel and Roaming will also greatly help in increasing eSIM adoption in the short term.”

The Power of eSIM/iSIM for Cellular IoT

Cellular IoT (cIoT) is a rapidly growing domain that hinges on reliable and efficient device connectivity. eSIM and iSIM technologies are ideally suited to address the unique challenges of cIoT deployments:

• Simplified Device Management: eSIM and iSIM enable remote provisioning and over-the-air (OTA) updates, streamlining device management for large-scale cIoT deployments.
• Enhanced Security: The inherent security features of eSIM and iSIM safeguard cIoT devices against unauthorized access and potential cyberattacks.
• Global Connectivity: eSIM and iSIM facilitate seamless roaming capabilities, ensuring uninterrupted connectivity for cIoT devices regardless of location.
• Cost Reduction: By eliminating the need for physical SIM cards and simplifying logistics, eSIM and iSIM contribute to cost reduction in cIoT deployments.

By 2030, Counterpoint Research expects iSIM-capable devices to account for a significant portion of the cellular device ecosystem. Commenting on iSIM’s expected high growth, Senior Analyst Ankit Malhotra said, “These are still very early days for iSIM. However, we expect iSIM adoption to pick up steam in the next three years. The technology has the potential to bring more efficiency to devices by lowering costs, size, and complexity. This makes it ideal for use in a wide range of IoT applications, from smart home devices to industrial sensors.” eSIM iSIM cellular devices

Enjoyed this? Let your friends know!