Global eSIM Market, By Solution (Hardware, and Connectivity Services), By Vertical (Automotive, Consumer Electronics, and Other Verticals), By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2023, the Global eSIM Market was valued at USD 8.8 billion and is expected to reach around 20.6 billion in 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 10.2%.

The global eSIM (embedded Subscriber Identity Module) market is a type of SIM technology integrated into devices and programmable remotely, eliminating the need to physically replace the card. eSIM technology makes transferring carriers easier for end users without needing to replace their physical SIM card easier than ever before, leading to increased security, flexibility, and lower prices for this advanced connectivity between various devices.

It is also ideal for Internet of Things apps, connected vehicles, and other cutting-edge technologies like autonomous vehicles or connected homes. eSIM adoption rates are growing due to its numerous advantages including increased security, increased flexibility, and lower prices, plus seamless connectivity between different gadgets such as Internet of Things apps or connected vehicles that require a connection between different gadgets.

Note: Actual Numbers Might Vary In The Final Report

Key Takeaways

• The market for electronic SIMs (eSIMs) is projected to reach approximately 20.6 billion by 2032, growing at an estimated compound annual growth rate between 2023-2032 of 10.2% compound annual growth rate.
• The global eSIM (embedded Subscriber Identity Module) market is being driven by an increase in connected devices, particularly IoT applications such as cars, laptops, M2M systems, smartphones, tablets and wearables.
• Major factors driving growth include Apple and Samsung utilizing eSIMs in their flagship smartphones as well as increased adoption for smartwatches due to their cost-effective and secure data storage properties.
• Though its market growth is impressive, eSIMs face various obstacles due to their non-standardized solutions for various devices and networks as well as higher initial investments compared with traditional SIM cards.
• Connectivity services dominate the market (89.48%), with mobile network operators offering various voice and data plans, IoT connectivity solutions, and remote management of eSIM profiles for devices equipped with an eSIM chip.
• Consumer electronics dominate the market, while automotive is projected to experience exponential growth due to an increasing need for connected cars.
• North America, Europe, Asia-Pacific, Latin America and MEA are key regions in the eSIM market. North America currently accounts for 42.24% of eSIM sales followed by Europe, Asia-Pacific Latin America and MEA.
• At present, key players in the eSIM market include Gemalto N V, Giesecke+Devrient GmbH, STMicroelectronics N V, Infineon Technologies AG, Valid S A, Kigen Ltd. Deutsche Telekom AG KORE Wireless NXP Semiconductors N V Sierra Wireless Thales Group Workz Group are among others that operate within this space.

Driving Factors

The global eSIM market is being propelled forward by several factors, including an increasing need for connected devices. As more businesses embrace IoT technologies such as IoT sensors and devices, there’s an increasing requirement to connect equipment securely and conveniently – something eSIM technology makes possible. Furthermore, major smartphone companies like Apple and Samsung are beginning to incorporate eSIMs into their devices, furthering consumer adoption of this form of SIM technology in this space.

Smartwatches also start the use of electronic SIMs (eSIMs). Not only can eSIMs reduce roaming fees and allow users to switch networks without directly replacing their SIM card, which has contributed to international travelers’ interest in them; furthermore, their more secure data storage and transmission properties appeal to organizations and people that require greater privacy than traditional SIM cards; their use is expanding into new markets as the technology allows its use in an array of devices and applications including automotive settings.

Restraining Factors

Though the global eSIM market is experiencing significant growth, there are several obstacles that could slow its progress. One major hindrance is a lack of standardized solutions for various devices and networks. Due to the absence of an international standard for eSIMs, compatibility issues may arise and prevent their widespread adoption.

Furthermore, due to the high cost associated with eSIM technology, some may hesitate to invest in it. The initial investment required to implement eSIM technology is higher than for traditional SIM cards, potentially discouraging some companies and consumers from adopting them.

Solution Analysis

Based on the solution the market for global eSIM is segmented into hardware and connectivity services. Among this segment, the connectivity services segment is dominant in the market with a market share of 89.48%.

Mobile network operators offer a range of connectivity services for eSIM-enabled devices, including voice and data plans, IoT connectivity solutions, and other services. These services typically include remote management and activation of eSIM profiles, as well as real-time analytics and insights into network usage. The hardware includes eSIM chips, eSIM modules, SIM cards, etc.

Vertical Analysis

By vertical analysis, the market is divided into automotive, consumer electronics, energy & utilities, manufacturing, retail, transportation & logistics, and other verticals. From this consumer electronics segment is dominant in the market.

The automotive sector is expected to see significant massive growth in the eSIM market because of the increasing demand for connected cars. eSIMs are used to provide internet connectivity and provide some other services also such as remote diagnostics and over-the-air software updates.

Note: Actual Numbers Might Vary In The Final Report

Application Analysis

Electronic SIM (eSIM) technology has many applications in consumer electronics devices like connected cars, laptops, M2M, smartphones and tablets, wearables as well as other gadgets. Nowadays eSIM technology is being extensively integrated into consumer electronics items like smartwatches. eSIMs eliminate the need for physical SIM cards, making it simpler for users to switch carriers or add extra lines to their devices.

Additionally, eSIMs can be programmed to connect to various networks – local networks, roaming networks, and international ones – making them perfect for global travelers. Furthermore, eSIMs are being utilized in the automotive industry as a way of connecting vehicles. This enables features like real-time traffic updates, remote diagnostics, and over-the-air software updates.

Key Market Segments

Based on Solution

• Hardware
• Connectivity Services

Based on Vertical

• Automotive
• Consumer Electronics
• Energy & Utilities
• Manufacturing
• Retail
• Transportation & Logistics
• Other Verticals

Based on Application

• Connected Cars
• Laptops
• M2M
• Smartphones
• Tablets
• Wearables
• Other Applications

Growth Opportunity

The global eSIM market presents several growth and expansion opportunities, driven by its growing adoption across emerging markets. As more countries connect to the internet, demand for secure and user-friendly ways of connecting devices has skyrocketed. As the Internet of Things (IoT) expands, electronic SIMs present another major opportunity in their space; offering secure scalable ways of connecting a large number of devices securely.

Automotive offers an immense opportunity for eSIM adoption; connected cars are expected to rapidly adopt them over the coming years. 5G networks have opened up new possibilities for eSIMs as they can take advantage of higher data speeds and reduced latency on 5G connections for faster connections. Furthermore, with their growing use for enterprise applications such as asset tracking or remote monitoring, eSIMs may move beyond consumer to enterprise applications as well.

Latest Trends

Trends are driving the expansion and development of the global eSIM market, particularly their increased use in consumer electronics such as cellphones and wearables, providing customers more access to this technology through major smartphone makers that integrate it into their products.

eSIMs have also proven themselves useful in Internet of Things (IoT) applications due to their secure and scalable network connectivity – perfect for asset tracking, remote monitoring, and smart home gadgets. The electronic SIM market is experiencing unprecedented expansion across a wide array of sectors; automotive eSIM adoption is expected to expand significantly over the coming years, while its use for business purposes such as supply chain management and asset tracking continues to expand exponentially.

Regional Analysis

Based on geographic segmentation, the global eSIM market can be examined. These regions include North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa (MEA). Given its prevalence of connected devices and access to top eSIM providers, North America currently holds the highest market share for eSIMs at 42.2%. North America’s three major markets for eSIMs are: USA, Canada, and Mexico whereas Europe features three key marketplaces for these eSIMs: UK Germany France

Asia-Pacific is an attractive market for eSIMs due to the rise in Internet of Things device adoption and rising demand in emerging economies such as India and China. China holds the highest eSIM penetration rate among this region’s countries followed by Japan and India.

Latin America and MEA are expected to experience significant growth in the eSIM market, due to the increasing adoption of connected devices and rising demand for secure and convenient connectivity solutions in these regions. Brazil, Mexico, and Argentina are leading markets in Latin America while UAE, Saudi Arabia, and South Africa lead MEA’s eSIM landscape.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Over the past several years, the eSIM (Embedded Subscriber Identity Module) industry has experienced steady expansion. Users can remotely provision and manage cellular connectivity because of this technology without physically changing their SIM card on a device.

A number of new competitors in this market are seeking out opportunities in developing and provisioning eSIM technology and developing related solutions such as SIM provisioning, remote SIM management, or any related service related to eSIM technology development and provisioning – each working towards providing these services in some form or another.

Market Key Players:

• Gemalto N V
• Giesecke+Devrient GmbH
• STMicroelectronics N V
• Infineon Technologies AG
• Valid S A
• Kigen Ltd
• Deutsche Telekom AG
• KORE Wireless
• NXP Semiconductors N V
• Sierra Wireless
• Thales Group
• Workz Group
• Other Key Players

Recent Developments

• In 2021: Launch of New eSIM-Based Services: Telecom operators and service providers have begun introducing eSIM-enabled travel SIM cards, as well as virtual mobile networks utilizing these cards.
• In 2020: Emergence of eSIM as a key technology for remote work: With the COVID-19 pandemic forcing many people to work from home, eSIM technology has emerged as an essential enabler of remote work, providing people with access to their work devices and networks without needing physical SIM cards.

Report Scope