The global eSIM market was valued at USD 8.07 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 7.9% from 2023 to 2030. This market growth is primarily driven by the increasing adoption of Internet of Things (IoT)-connected devices, particularly in machine-to-machine (M2M) applications and consumer electronics. One of the key trends contributing to this growth is the rising frequency of eSIM profile downloads across consumer devices. As more and more devices become eSIM-enabled, the market continues to accelerate.
According to Mobilise, the number of eSIM-enabled devices reached 1.2 billion in 2021, and this number is expected to increase significantly to 3.4 billion by 2025, reflecting the growing integration of eSIM technology across a wide range of devices.
A significant factor in the expansion of the eSIM market is its adoption within the automobile industry. The integration of eSIM technology into vehicles has introduced remarkable flexibility in offering cellular connectivity to cars and trucks. This shift is unlocking new capabilities and features for connected vehicles. In the coming years, it is expected that all cars will be equipped with cellular connectivity, improving the driving experience through innovative linked services. Recently, the automotive industry has made a significant advancement by implementing the GSMA-embedded SIM specification. This development is set to enhance vehicle connectivity and improve the security of various connected services, further enabling the next generation of connected and smarter automobiles.
Gather more insights about the market drivers, restrains and growth of the eSIM Market
Regional Insights
North America
North America led the eSIM market in 2022, accounting for the largest revenue share of 39.1%. The region is also expected to grow at the fastest compound annual growth rate (CAGR) of 8.7% during the forecast period. This growth is primarily driven by the strong presence of network providers and the rapid pace of technological advancements within the region. North America benefits from its advanced infrastructure, robust digital ecosystem, and the increasing adoption of IoT devices, all of which support the continued growth of eSIM technology.
Europe
Europe is also projected to experience significant growth over the forecast period. European companies have historically been early adopters of new technologies, and the region is home to many key market players, including Giesecke+Devrient Mobile Security GmbH, NXP Semiconductors N.V., and STMicroelectronics, among others. Additionally, Europe is witnessing a rising demand for smart connected devices and connected vehicles, particularly with the growing adoption of eSIM-enabled smartphones, smart cars, and other IoT devices. These factors position Europe to maintain a strong market presence alongside North America during the forecast period.
Asia Pacific
Asia Pacific is expected to see substantial growth as well, fueled by the increasing number of eSIM-enabled devices, particularly in the smartphone market. Major smartphone manufacturers such as Huawei and Samsung Electronics have already introduced eSIM-enabled devices, which are driving the momentum for eSIM adoption across the region. This shift is positioning eSIM as the future mainstream SIM technology for connected devices. Additionally, several original equipment manufacturers (OEMs) in countries like China and India are developing eSIM solutions, collaborating across the ecosystem to create innovative development paths. For example, in June 2021, IDEMIA, a leading eSIM manufacturer, expanded its production capacity in India, aiming to boost global eSIM production. According to Giesecke+Devrient (G&D), a German digital solutions provider, it is projected that 25-30% of smartphones will have eSIM capabilities by 2024.
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Key Companies & Market Share Insights
Industry players in the eSIM market are actively pursuing strategies like product launches, acquisitions, and collaborations to expand their global presence and enhance market competitiveness. For example, in September 2022, BICS, a digital communications services and IoT company, partnered with Thales, a global technology provider, to streamline the integration of eSIM for the Internet of Things (IoT). This strategic collaboration aims to build an open ecosystem for eSIM technology within the IoT sector, allowing for easier integration and more efficient deployment of eSIM solutions across various industries. The collaboration is designed to enhance connectivity and operational efficiency, which could lead to more widespread adoption of eSIM technology.
As the eSIM market grows, competition is expected to intensify, with companies focused on developing advanced, cost-effective solutions. The ability of eSIM technology to simplify the process of switching between mobile network operators is expected to drive heightened competition among service providers. The growing ease with which consumers can change operators is likely to encourage more switching, leading to a more competitive landscape in the telecommunications sector.
For instance, in September 2021, Deutsche Telekom AG announced the launch of an in-car 5G and personal eSIM networking service in partnership with Bayerische Motoren Werke AG (BMW). The collaboration utilized personal eSIM technology and MobilityConnect to link the vehicle's connectivity with the customer’s mobile network on a 5G basis, enabling a more integrated and seamless experience for connected car users. This innovative solution highlights how companies are leveraging eSIM technology to enhance connectivity and create new value-added services in the automotive sector.
The following are some of the major participants in the global eSIM market
• Arm Limited
• Deutsche Telekom AG
• Giesecke+Devrient GmbH
• Thales
• Infineon Technologies AG
• KORE Wireless
• NXP Semiconductors
• Sierra Wireless
• STMicroelectronics
• Workz
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