eSIM Market to Be Worth Over $4 Billion Globally in 2023
A new Juniper Research study has found that the value of the global eSIM market will increase from $4.7 billion in 2023, to $16.3 billion by 2027. eSIMs are embedded within devices; enabling devices and sensors to seamlessly switch between network operator profiles. The new report offers the most comprehensive analysis of the eSIMs (embedded SIMs) market available today. esim 2023
Increasing by an impressive 249%, the market will be driven by the adoption of eSIM-enabled consumer devices, as seen in Apple’s recent release of the eSIM-only iPhone 14, triggering accelerated operator support.
Top Three eSIM Trends in 2023 esim 2023
1. Emergence of iSIM Specification
Juniper Research believes that iSIM (integrated SIM) represents the next evolution of connectivity beyond eSIM, especially within connected devices and IoT use cases. By removing the embedded SIM entirely, manufacturers will be able to produce smaller connected devices, drastically expanding the scope of connectivity.
An iSIM is part of an application processor, known as a SoC (System on Chip). Unlike eSIMs or traditional SIMs, iSIM technology does not require a physical chipset. Instead of on-device hardware, iSIMs use a TRE (Tamper Resistant Element) implemented within a SoC in order to ensure device security.
iSIMs offer clear advantages over and above traditional SIMs and eSIMs, including additional flexibility and resource-saving capabilities. iSIMs could, for example, be used in smart labels within connected factories. While the initial use of smart labels will be limited to high-value goods, in order to justify the higher costs, the commercialization of iSIM technology will eventually mean that prices fall and make
the technology more accessible. Specifically, iSIM is suited for the authentication of IoT devices in a 5G network, with those high-value use cases being able to justify the elevated price of iSIMs and 5G connectivity.
2. Need for IoT Security
When considering the relationship between eSIM adoption and IoT security, it is important to note that once a device is connected to a network and a profile has been stored, eSIMs and iSIMs use the same algorithms as traditional plastic SIMs.
However, eSIM-enabled devices will offer a stronger defence against DoS (Denial of Service) attacks, with users able to select different operator profiles via a local profiler assistant.
For consumer devices, the issue of end-to-end security is arranged via the operating system. This means that the download specifications of an eSIM is not the responsibility of consumers, simplifying the process and encouraging market adoption. Within IoT use cases, some devices may have this option adding via a password-encrypted user interface.
However, it is important to note that the GSMA does not specify this level of implementation as a requirement. Therefore, it is the device manufacturer’s responsibility to secure the device, preventing hacks of the remote management system.
Juniper Research notes that governments in several countries have implemented IoT cybersecurity regulations, including Australia, Brazil, Canada, China, Finland, India, Japan, Oman, Saudi Arabia, Singapore, Thailand, UAE, UK, US, and Vietnam.
However, it is important to note that the introduction of ‘cleaner’, more secure IoT infrastructure will come at an elevated price, which may deter stakeholders operating in LPWA connectivity. Only IoT use cases that involve personal data or sensitive information will be considered for this new infrastructure, such as telehealth and connected vehicles.
The Android Ready SE (Secure Element) Alliance is a collaboration between Google and SE vendors, offering open-source implementations of hardware-backed security applets for use cases such as digital money solutions, identity credentials, and digital keys. Google’s partners on this initiative include G+D, Goodix, Kigen, NXP Semiconductors, Samsung, STMicroelectronics, Thales, Tongxin Micro, Unisoc, and VALID.
eSIM-enabled Android Devices to Accelerate Consumer Adoption
The research predicts that Apple will expand the deployment of eSIM-only devices to Europe during 2023, with eSIM technology key to minimizing the time-consuming establishment of roaming agreements within the fragmented European telecommunications market.
It found that the total number of smartphones leveraging eSIM connectivity will increase from 986 million in 2023 to 3.5 billion by 2027, with manufacturers such as Google and Samsung developing an equivalent eSIM-only Android device in order to compete with Apple and maintain their global market positioning.
Research author Scarlett Woodford remarked: “Despite operator concerns regarding the disruptive impact of eSIMs on existing business models, growing support from smartphone manufacturers will place additional pressure on operators. In response, service providers must support eSIM connectivity to avoid subscriber attrition as technology awareness increases.”
3. Requirement of Automation & Self-service
Enterprises increasingly want turn-key solutions that also include a suite of value-added services. They require the automation of deployment, as they do not want to build eSIM-enabled platforms themselves. It can take months for a system integration between network operators and device managers to take place, costing great expense.
If enabling IOT solutions globally, enterprises would need to enable several hundred network operators and comply with all necessary regulations. Enterprises may choose to work with an MVNO, but these stakeholders tend to have a shorter lifespan within the ecosystems. eSIM technology provides the flexibility for devices to change operator profiles when deploying devices in different countries but also supports use cases where MVNOs have stopped trading and enterprises are left without connectivity. In these instances, devices can connect to another operator’s profile without the need to change the SIM, meaning that eSIM can work as an insurance policy for connectivity.
There is a growing demand for eSIM management platform providers that offer value-added services as a bolt-on. This is especially the case for on-device intelligence. Enterprise customers may have negotiated cross-market contracts for operators such as Vodafone or AT&T, through which they have a connectivity platform.
However, they are unlikely to have advanced intelligence features which enable connectivity. There is a need for advanced connectivity to be built into the device from the beginning, starting with a multi-IMSI bootstrap but there is also the need for software to industrialize and scale that.
Here are some indicative prepaid eSIM card prices:
