Summary
Major players in the esim market are Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Gemalto NV, ARM Holdings, Valid S.A., Idemia, Workz Group, Truphone Limited, Gigsky Inc., Sierra Wireless, Singapore Telecommunications Limited, Telefonica SA, and KORE Wireless Group Inc.
The global eSIM market is expected to grow from $8.51 billion in 2022 to $9.73 billion in 2023 at a compound annual growth rate (CAGR) of 14.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The eSIM market is expected to reach $15.89 billion in 2027 at a CAGR of 13.1%.
The eSIM market consists of revenues earned by entities by providing data only and voice, SMS, and data services.The market value includes the value of related goods sold by the service provider or included within the service offering.
The eSIM market includes sales of embedded universal integrated circuit card (eUICC) which is used for providing eSIM services.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.
eSIM refers to an embedded universal integrated circuit card (eUICC) capable of supporting different network carrier profiles that are essentially embedded in it. It enables users to use a cellular plan from carrier without the need for an actual nano-SIM.
North America was the largest region in the eSIM market in 2022. The regions covered in eSIM report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The main solutions of eSIM are hardware, and connectivity services.Hardware refers to all of a computer system’s physical parts, including the devices it is attached to.
The various applications involved are connected cars, laptops, M2M, smartphones, tablets, wearables, and others that are used in automotive, consumer electronics, energy and utilities, manufacturing, retail, transportation and logistics verticals.
The increasing penetration of smartphones is significantly contributing to the growth of the eSIM market going forward. A smartphone refers to a mobile phone with highly advanced functions. eSIMs are built into consumer devices such as smartphones, allowing the user to re-program sim contents such as the international mobile subscriber identifier (IMSI) and network carrier profiles via software, eliminating the requirement for SIM card replacement. For instance, according to the Pew Research Center, a nonpartisan American think tank, the percentage of Americans who own a smartphone climbed from 81% in February 2019 to 85% in February 2021, which was just 35% a decade ago (in 2011). Addtionally, according to India Brand Equity Foundation (IBEF), the Indian smartphone market also experienced a 10-fold increase from 14.5 million shipments in 2011 to 150 million in 2020. Therefore, the increasing penetration of smartphones will drive the eSIM market.
Technological advancement is the key trend gaining popularity in the eSIM market.Major companies operating in the eSIM market are focusing on expanding the use cases and applications of their eSIM offerings.
For instance, in January 2020, Ericsson, a Sweden-based networking and telecommunications company launched its new eSIM solution. The eSIM solution provides remote provisioning of user-profiles and device administration, which are critical capabilities that allow communication service providers (CSPs) to manage user profiles more effectively.
In December 2020, Tata Communications, an India-based telecommunications company acquired a 58.1% equity stake in Oasis Smart SIM for an undisclosed amount. The acquisition adds eSIM technology to the arsenal of Tata Communications. Oasis Smart SIM is a France-based provider of eSIMs for IoT and M2M applications.
The countries covered in the eSIM market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The eSIM market research report is one of a series of new reports that provides eSIM market statistics, including eSIM industry global market size, regional shares, competitors with eSIM market share, detailed eSIM market segments, market trends, and opportunities, and any further data you may need to thrive in the eSIM industry. This eSIM market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
