The global E-SIM card market is rising steadily due to the several advantages of E-SIM card over conventional SIM cards. E-SIM card allows changing mobile network operator at a few clicks, a feature distinct to them. For instance, ability to switch network providers over the air in machine to machine systems such as smart meters and connected cars has substantial advantages in terms of reducing logistics and operational costs.
The compact design of E-SIM and standardization of technical specifications for Embedded SIM technology is another distinct feature that sets E-SIM cards apart from conventional SIM cards. This is because Embedded SIM technology is standardized by Groupe Speciale Mobile Association, which comprises more than 800 mobile operators worldwide. Further, compact design of E-SIM cards is advantageous to original equipment manufacturers for increasing the battery size or to provide additional storage in electronic devices.
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A report by Transparency Market Research predicts the global E-SIM card market to rise at a healthy 13.5% CAGR between 2017 and 2025. Progressing at this rate, the market is anticipated to display an opportunity of US$14,613.1 mn by 2025 increasing from US$4,095.6 mn in 2016.
The E-SIM card finds application in machine to machine domain, which has accounted for the highest share in terms of revenue amongst other. This segment is expected to retain its dominance during the forecast period. The smartphone segment is predicted to be most progressive segment by the year 2019. Rise in growth of smartphones is expected to expand the global E-SIM card market at a CAGR of 26.3% during the assessed period. Geographically, Europe is predicted to hold the leading position in terms of revenue contribution in the market. Government policies in this region is favoring the growth of the market.
Numerous factors are contributing to the rise in demand for the global E-SIM card market. Amongst these factors, the option of changing network providers in real time Over the Air, is the key factor which is making users to pick this E-SIM card over the traditional one. This ability helps to change the network providers to switch between network provides, thus preventing them from suffering loss from international roaming charges.
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This facility turns out to be game changer for people having smart meters and connected cars, as this helps reducing logistics and operational costs. Other factors which drives the market growth is that the E-SIM card provides better securities in comparison to conventional SIM Card thus attracting huge crowd who have concern regarding securities. Design of E-SIM card favors the market growth, as the compact design of it helps OEMs, thus making additional space for storage or increasing the size of the battery in smartphones and tablets.
Rise in uptake of E-SIM in consumer electronics devices and automotive industry has fueled the growth of the global E-SIM card market. Use of E-SIM in advanced vehicles has already set an ongoing trend in developed countries. As, a result, rise in automotive industries to directly have a positive impact on the growth of the market. However the market is expected to face a possible restrain by MNOs during its adoption as it thwarts consumers from visiting to a network provider’s store. This will cut down the customer’s bargaining power.
Smartphones Application Segment to Display Leading CAGR until 2025
In terms of application, the global E-SIM card market has been segmented into machine to machine (M2M), wearable and companion devices, smartphones, and tablets and laptops. The segment of M2M, among these, contributed the leading revenue contribution in 2016. M2M is further sub-segmented into connected cars, utility, and others. Of them, connected cars is expected to expand at a CAGR of over 15% between 2017 and 2025 backed by the rising adoption of E-SIM card in the automotive industry for weather information and infotainment.
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The commercialization of Embedded SIM for smartphones is expected in 2019. The segment is expected to rise at a robust CAGR of 26.3%between 2019 and 2025.
Asia Pacific to Exhibit Leading CAGR between 2017 and 2025
The key segments into which the global E-SIM card is divided based on geography are North America, Asia Pacific, Europe, Middle East and Africa, and South America. In 2016, Europe stood as the leading revenue generation region and is expected to display substantial CAGR over the forecast period. The supremacy of the region is due to the favorable government initiatives for the implementation of “Industry 4.0” technology and solutions. The U.K., France, and Germany are the leading revenue contributors to the Europe E-SIM card market.
North America held the second-leading revenue share in the global market in 2016 with the U.S. contributing the leading revenue. The region is expected to display significant growth over the forecast period. The increased adoption of technology as well as home to key industry players is driving the growth of this regional market.
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Asia Pacific, amongst all, is expected to rise with the leading CAGR over the forecast period. The growth of this region is backed by the rising adoption of embedded SIM technology in M2M devices across several countries such as China and Japan.
South Africa and Gulf Cooperation Council are the leading revenue generating regions in the Middle East and Africa. The E-SIM card market in South America is driven by the rising adoption of embedded SIM in utilities to provide smart metering solutions. Brazil is the leading revenue contributing domestic market to the E-SIM card market in the region.
Some prominent players operating in the global E-SIM card market profiled in this report are Apple Inc., Samsung, Gemalto N.V., Giesecke & Devrient GmbH, NTT DOCOMO Inc., OT-Morpho, Telefonica S.A., Deutsche Telekom AG, Sierra Wireless Inc., and ST Microelectronics.
Report is available here.