Europe eSIM Card Market Accounts for Dominant Share in Global Market
The global market for eSIM cards is envisioned to witness the entry of several new players, thereby intensifying the level of competition in the near future, observes a recent report by Transparency Market Research.
Some of the leading companies in the market are Telefonica S.A., Gemalto N.V., Apple Inc., Samsung, NTT DOCOMO Inc., Sierra Wireless Inc., ST Microelectronics, Giesecke & Devrient GmbH, Deutsche Telekom AG, and OT-Morpho.
The report states that the global eSIM card market will exhibit an impressive CAGR of 13.5%, rising from a valuation of US$4,095.6 mn in 2016 to an opportunity of US$14,613.1 mn by 2025.
Europe eSIM Market Accounts for Dominant Share in Global Market
In terms of application, the segment of machine-to-machine led the global E-SIM market in terms of revenue contribution to the global market in 2016. While the segment is expected to retain its dominance over the forecast period as well, the segment of smartphones is projected to gather pace and account for a significant share of the overall market post 2019. The smartphone application segment is envisaged to exhibit a robust 26.3% CAGR from 2019 to 2025.
From a geographical standpoint, the E-SIM market in Europe accounted for the dominant share in the global market in 2016, with the North America market following, in terms of revenue contribution. n 2016, Europe stood as the leading revenue generation region and is expected to display substantial CAGR over the forecast period.
The leading position of Europe in the global E-SIM market can be attributed to favorable government policies that have led to the swift uptake of automation and data exchange in manufacturing technologies.
The U.K., France, and Germany are the leading revenue contributors to the Europe eSIM card market.
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, the Middle East and Africa, and South America.
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, among 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 eSIM 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 eSIM card market in the region.
Ease of Switching Mobile Network Operators in Real Time to Fuel Demand
A number of factors are contributing to the growth of the global and Europe eSIM market, including the ability of E-SIMs to switch between network providers in real time Over the Air (OTA). This facility allows users to change their network providers at ease, thereby preventing consumers from incurring international roaming charges. This facility comes in handy, especially when used in connected cars and smart meters where it helps reduce significant operational and logistics costs.
Other factors fueling the growth of the global eSIM market include the standardized set of technical specifications for the eSIM technology, which offers better security than conventional SIM cards. The technology has been standardized by Groupe Speciale Mobile Association and covers over 800 mobile operators across the globe. Moreover, the compact design of eSIM proves beneficial for OEMs who can use the saved space to provide additional storage or increase the size of the battery in devices such as tablets and smartphones.
Here are some indicative prepaid SIM card prices: eSIM Activation