Global eSIM Market to Surpass US$ 19.3 Bn by end of 2027
According to Coherent Market Insights, the global eSIM market was valued at US$ 8.3 Bn in 2019 and is expected to reach US$ 19.3 Bn by 2027 at a CAGR of 15.9% between 2020 and 2027. More global eSIM market predictions are below.
An ESIM, or Embedded Universal Integrated Circuit Card, is a generic form of non-volatile programmable universal integrated circuit card. It works just like a standard SIM card. It contains stored configurations and can be programmed by connecting the card to a computer or a modem. Esim was developed for the telecommunications industry, specifically for the implementation of network-attached storage (NAS). The primary use of eSIM is for the mass production of microsemi switches and other embedded transceivers. Several manufacturers provide support for eSIM-based cards. Esim manufacturers support eSIM through hardware and firmware updates, software upgrades, and their own brand of eSIM cards. Esim is used in a variety of different types of networking equipment, including digital cellular phones, laptop computers, desktop computers, modems, wireless personal area networks, distribution equipment, printers, fax machines, and much more.
Market Drivers:
Growing demand for Esim from tablets, smartphones, and others is driving the growth of the market. Recent studies since 2019 suggest that there has been a major jump in the daily hour usage of smartphones per user. “There is nearly a 39 percent increase in smartphone usage from 2019. Such a rise in the usage of smartphones is propelling the growth of the market. The growth is also attributed to the increasing disposable income of consumers. According to the National Bureau of Statistics (NBS), China’s rural and urban per capita disposable income reached US$ 5,658.45 from US$ 2,107.2 in 2018.
Technological advancement is another key factor propelling the growth of the market. For instance, in June 2021, EMnify, announced the release of eSIM for evaluation customers, enabling IoT developers to sign up and develop with the EMnify API immediately, anywhere in the world. The eSIM lets users install EMnify’s global SIM profile on a compatible device in seconds without having to order and swap physical SIM cards.
The M2M segment is expected to drive market growth during the forecast period
Among applications, the M2M segment is expected to hold a dominant position in the global eSIM market during the forecast period owing to the several advantages offered by the implementation of eSIM in mobile devices. The M2M applications are increasing the demand for eSIM devices for many industries, such as retail, energy, transportation, automotive, and many others. This is due to the growing demand for advanced technologies such as M2M applications and IoT that are boosting the integration of eSIM in various industries. For instance, in February 2018, NXP Semiconductor, a Netherlands-based semiconductor manufacturing company, launched eSIM-enabled devices for 5G and IoT applications. These devices provide end-to-end security in order to provide safe data protection for consumers, service providers, and original equipment manufacturers.
The global eSIM market was valued at US$ 8.3 Bn in 2019 and is expected to reach US$ 19.3 Bn by 2027 at a CAGR of 15.9% between 2020 and 2027.
North America held a dominant position in the global eSIM market during the forecast period
North America held a dominant position in the global eSIM market in 2019, accounting for 41.2% share in terms of value, followed by Asia Pacific and Europe.
North America is expected to account for the largest market share during the forecast period, owing to the presence of key players in the region such as AT&T, Thales Group, Kore Wireless, and Sierra Wireless. For instance, in 22 October 2020, Kore Wireless, U.S. U.S.-based company that provides M2M services, launched eSIMPro, which is a device validation tool. The users of eSIMPro can validate their devices themselves in just 15 minutes.
Asia Pacific region is expected to exhibit the highest growth during the forecast period owing to increasing population and disposable income. According to the World Bank report, the population in India reached US$ 1,341.0 million in March 2020, from 1,327.0 million in March 2019. According to the National Bureau of Statistics (NBS), China’s rural and urban per capita disposable income reached US$ 5,658.45 from US$ 2,107.2 in 2018. The growing demand for technologically advanced smartphones is also expected to drive market growth during the forecast period.
Market Opportunities & global eSIM market predictions
The growing application of Esim in retail, energy, transportation, automotive, and many others is projected to provide lucrative growth opportunities. For example, in February 2018, NXP Semiconductor, a Netherlands-based semiconductor manufacturing company launched eSIM-enabled devices for 5G and IoT applications. These devices provide end-to-end security in order to provide safe data protection for consumers, service providers, and original equipment manufacturers. Similarly, in October 2021, Valid launched a state-of-the-art mioSIM eSIM for Consumer 3.0 solution ready to answer the industry demand for secure transversal applications with the support of Android Strongbox technology—an Android Ready SE applet responsible for the secure provisioning of Android keys
Increasing penetration of smart meters, smart cities, and electric vehicles is expected to bring bright opportunities to the Esim market. For instance, in November 2018, Workz Group, a Dubai-based company that offers SIM provisioning solutions, announced an agreement with the African government to implement an embedded eSIM-enabled water meter in the country.
