by The global eSIM Market is estimated to be valued at US$ 14,717.07 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.
Market Overview:
An eSIM (embedded SIM) is a digitally downloadable SIM profile that allows users to activate a cellular data plan onto their connected devices without having to use a physical SIM card. eSIM provides more flexibility in switching operators as the embedded profiles can be remotely updated over-the-air, removing the need for a physical SIM card swap. Connected devices including smartphones, smartwatches, tablets, IoT devices use eSIM to support cellular connectivity without the need for a physical SIM slot. eSIM enhances the user experience by allowing multiple profiles on the same device and simplified connectivity while international travels.
Market key trends:
Growth in adoption of IoT devices is expected to be a major driver for the esim Market Size during the forecast period. Various consumer electronic devices and industrial equipment are being integrated with connectivity, which is driving the demand for eSIM. eSIM eliminates the need for physical SIM cards in various IoT applications including smart meters, fleet management, asset tracking, telematics etc. thereby making the device deployment and remote monitoring more seamless. Additionally, growing popularity ofconnected cars concept is also boosting the eSIM integration to offered enhanced connectivity capabilities. Leading automobile manufacturers are partnering with eSIM providers to develop embedded connectivity solutions for new vehicles.
Porter’s Analysis
Threat of new entrants: The risk of new entrants is moderate as significant investments are required to build infrastructure and global network support. However, the market is still growing with scope for new players.
Bargaining power of buyers: The bargaining power of buyers is high as eSIM offers flexibility and customers can switch between mobile operators easily. Buyers can negotiate on prices being offered by operators.
Bargaining power of suppliers: Major mobile operators and semiconductor companies have strong influence in the market as suppliers of eSIM. Their bargaining power over manufacturers of IoT devices and smartphones is high considering the technology requirements.
Threat of new substitutes: Currently, there are no close substitutes for eSIM technology. However, alternatives like embedded UICCs and physical SIM cards pose competition based on technology feasibility for various IoT devices.
Competitive rivalry: The competitive rivalry is high among mobile operators and technology giants offering end-to-end eSIM solutions considering opportunities for expansion in IoT and M2M devices.
Key Takeaways
The global eSIM Market is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing adoption of IoT devices and M2M connectivity requirements among enterprises. By 2030, the eSIM market size is projected to reach over US$ 50 Bn.
North America dominated the eSIM market in 2021 led by significant investments in 5G infrastructure by telecom operators and growth of IoT applications across automotive, healthcare and utilities industries in the US and Canada. Asia Pacific is anticipated to witness the fastest growth through 2030 with China, Japan and South Korea among the major revenue generators.
Key players operating in the eSIM Market are Infineon Technologies AG, STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Thales Group, KORE Wireless, Arm Limited, Truphone Limited, Workz Group, Sierra Wireless, NXP Semiconductors, AT&T. Major players are focusing on partnerships with mobile operators and smartphone OEMs for integrated eSIM solutions and driving technology adoption worldwide.
