The 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 is an embedded SIM that allows users to activate a cellular data plan from a carrier without using a physical SIM card. eSIMs are embedded directly into mobile devices during manufacturing, allowing cellular connectivity to be provisioned via an over-the-air (OTA) update. Major applications of eSIM include smartphones, tablets, smartwatches, laptops, routers and other IoT devices. eSIM helps in remote provisioning and switching between cellular plans/carriers without requiring a physical SIM card change.
Market Dynamics:
Increasing adoption of IoT connectivity across various industries is a major factor driving growth of the eSIM market. Numerous connected devices used in healthcare, automotive, industrial and consumer electronics sectors require embedded cellular connectivity for remote operations and management. Since eSIM embedded devices do not require physical SIM cards, they help reduce costs and improve operational flexibility for OEMs. In addition, eSIM allows for simple activation and changing of cellular plans, thus providing enhanced user experience over physical SIMs. Furthermore, growing multi-device ownership trends and rising demand for flexible cellular connectivity options is fueling demand for eSIM technology. However, high costs associated with eSIM embedded devices and security concerns related to remote provisioning of eSIM profiles are some of the factors that may hamper market growth.
Segment Analysis
The global esim Market Size is dominated by the integrated SIM sub-segment. An integrated SIM, also known as an embedded SIM, is a SIM chip that is directly embedded into a device during the manufacturing process rather than using a removable SIM card. Integrated SIM supports devices like smartwatches, tablets, laptops and other IoT devices. It allows devices to connect to cellular networks without the need for a physical SIM card slot. As more IoT and mobile devices are being launched without physical SIM card slots, the integrated SIM sub-segment is expected to hold the major market share in the forecast period.
PEST Analysis
Political: Governments around the world are promoting the adoption of eSIM in IoT devices for better monitoring and management. They are introducing regulations to make eSIM integrated mobile connectivity mandatory in certain smart products.
Economic: The growing demand for connected IoT devices from various industries is driving the need for embedded connectivity solutions like eSIM. Its cost-effectiveness compared to physical SIM cards is encouraging adoption.
Social: Rising preferences for tech-savvy products coupled with the trend of digital transformation across sectors is propelling the eSIM market growth. People are comfortable using smart connectivity features on various smart devices.
Technological: Advancements in cellular technologies, growing deployment of private LTE/5G networks for industrial IoT, and increasing focus on developing eSIM for automotive applications are boosting technological innovations.
Key Takeaways
The global eSIM market size is expected to reach US$ 14717.07 Mn by 2023, growing at an impressive CAGR of 16% over the forecast period. This high growth can be attributed to the rising adoption of IoT-enabled smart consumer devices along with increasing deployment of private cellular networks for industrial IoT.
Regionally, North America captured the largest share in the global eSIM market in 2022 owing to high penetration of IoT and connected devices across sectors in countries like the US. However, Asia Pacific is projected to witness the highest CAGR during the forecast period due to large-scale industrial IoT adoption and growing deployment of private LTE/5G networks in China, Japan and South Korea.
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. Some of these players are focusing on strategic collaborations and partnerships to develop advanced eSIM solutions and expand their global footprints.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
