Embedded SIM (eSIM) technology provides a built-in digital SIM profile that allows users to activate and switch mobile plans remotely through an over-the-air (OTA) update rather than using a physical SIM card. eSIM has become the preferred option for connectivity in various IoT applications such as smart meters, asset trackers, healthcare devices and more due to its compact size and flexible activation capabilities. The technology eliminates the need to manually change SIM cards when switching mobile carriers, plans or regions, instead enabling remote provisioning via cellular networks and WiFi. The global eSIM market offers a wide range of solutions including connected cars, smartphones, laptops and tablets, wearables as well as M2M devices for utilities, manufacturing, oil & gas, retail and logistics industries among others. Advancements in 5G networks and cellular standards are also driving increased demand for eSIM in applications requiring high speed, low latency connectivity. The global eSIM Market is estimated to be valued at US$ 14717.07 Mn in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the global eSIM market size is the shift towards integrated eSIMs. Currently, most eSIM phones have physical eSIM slots that support an inserted eSIM card or profile. However, many OEMs are now building eSIM connectivity directly into the device’s silicon without requiring a separate integrated chip or slot. This leads to more compact hardware designs, lower manufacturing costs and improved water/dust resistance. Integrated eSIMs also enable multiple active profiles to be stored simultaneously rather than just one as with removable eSIM cards. As both consumer and industrial device manufacturers look to optimize designs, integrated eSIMs are expected to become more mainstream going forward.
Threat of new entrants: The threat of new entrants into the eSIM market is moderate. Establishing a strong presence requires significant investment in technology development, customer acquisition and partnerships with mobile operators.
Bargaining power of buyers: The bargaining power of buyers in the eSIM market is high. Buyers have a variety of eSIM providers to choose from and switch with ease. They can negotiate on price and demand additional services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While a few key players dominate the supply of eSIM technology, establishing partnerships remains important for mobile operators and device manufacturers.
Threat of new substitutes: The threat of substitutes is low. No direct substitutes currently exist that can provide the same connectivity benefits of eSIM technology across many device categories.
Competitive rivalry: Competition in the eSIM market is high among major players. Companies compete based on features, technology, partnerships and geographic expansion.
The global eSIM market is expected to witness high growth over the forecast period. The Asia Pacific region currently dominates the market due to high smartphone adoption and supportive government policies for IoT connectivity. China, South Korea and Japan are major markets in the region.
Regional analysis: North America is the second largest eSIM market driven by the presence of leading device manufacturers. The US and Canada are early adopters of eSIM technology in automotive and industrial IoT applications. In Europe, countries like the UK, Germany and France are contributing to market growth through collaborations with mobile operators on eSIM projects.
Key players: Key players operating in the eSIM market are Tesla, Zoox, Waymo, Cruise, Argo AI, Aurora, Motional, Pony.ai, Nuro, Embark, TuSimple, Plus, Inceptio Technology, WeRide, Pronto.ai, Vay, Phantom Auto, Ottopia, Cognata, and AutonomouStuff. The players are focused on partnership strategies to capitalize on opportunities in connected vehicles and industrial IoT segments.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it