The global eSIM Market is estimated to be valued at US$ 14717.07 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
An eSIM is an embedded SIM that enables the connection of Internet of Things (IoT) devices and machines to cellular networks without the use of a physical SIM card. eSIM relies on a secure element embedded in the device itself which can remotely be changed based on specific profiles. This allows multiple network operators to be changed remotely without having to change the physical SIM card. eSIM offers seamless connectivity, saves on costs, and improves flexibility compared to conventional SIM cards. The increasing adoption of IoT devices across various industries is expected to drive significant growth of the eSIM market size over the forecast period.
Market key trends:
One of the key trends in the eSIM market is the increasing adoption of eSIM in smartphones and wearables. Major smartphone manufacturers are integrating eSIM technology in their devices to offer dual SIM capabilities and flexibility of changing carriers remotely without swapping SIM cards. Additionally, the integration of eSIM in wearable devices such as smartwatches is expected to gain traction. This is attributed to benefits such as small form factor, multiple profiles, and flexible connectivity. Furthermore, the development of 5G networks is expected to propel the adoption of eSIM as the technology supports advanced cellular connectivity compared to conventional SIM cards. Manufacturers are focusing on developing sophisticated secure elements to securely store eSIM profiles. This is expected to further drive the eSIM market growth during the forecast period.
Threat of new entrants: The threat of new entrants is low as new players need significant capital investments to obtain the necessary infrastructure, technology and certifications required to provide their solutions to mobile operators and device manufacturers.
Bargaining power of buyers: The bargaining power of buyers is moderate as customers have several suppliers to choose from and can negotiate prices. However, switching costs are relatively high for customers.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many tech companies providing solutions for eSIM technology. Additionally, chipmakers compete intensely on prices.
Threat of new substitutes: The threat of new substitutes is low as no other technology offers the same functionality as eSIM at this point. However, other connectivity solutions like WiFi could emerge as alternatives.
Competitive rivalry: Competition in the market is intense with the presence of major tech players focusing on developing advanced eSIM solutions.
The global eSIM Market is expected to witness high growth, exhibiting CAGR of 16.% over the forecast period, due to increasing smartphone and IoT device adoption.
Regional analysis: North America is expected to dominate the eSIM market during the forecast period. The U.S. is one of the leading countries in terms of technological advancements and adoption of digital technologies. The rising adoption of connected devices and the presence of major players in the region are fueling the market growth. Asia Pacific is expected to grow at the fastest pace due to increasing IoT connectivity and smartphone usage in emerging economies like China and India.
Key players: Key players operating in the eSIM Market are Infineon Technologies AG, STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH. Infineon offers a variety of chip-based solutions for eSIM including discrete and module based SIM chips. STMicroelectronics provides secure elements and embedded software solutions to support eSIM adoption. Deutsche Telekom has been successful in deploying eSIM connectivity in Europe.