eSIM Market Research Report - Global Forecast till 2027

Global eSIM Market Research Report: By End User (Automotive, Energy & Utilities, Manufacturing, Retail, Consumer Electronics, Transportation & Logistics) - Forecast till 2027

ID: MRFR/ICT/5156-CR | February 2020 | Region: Global | 86 pages

Market Overview


Global eSIM Market is projected to garner a valuation of USD 913.9 Million by 2024, registering a 28.0% CAGR during the forecast period (2019–2024).


eSIM is a digital SIM embedded in a mobile device, allowing activation of a cellular plan without using a physical SIM card. Embedded SIM card stores all the necessary information to authenticate and identify a mobile subscriber and allows users to save one or more operator profiles on a single device and switch between them remotely. 


A simple device setup without having to insert or replace a SIM card and a range of new and improved mobile-connected devices are a few of the advantages of eSIM. The ability to switch between network service providers in real-time and prevent charging the subscribers for international roaming is one of the key advantages driving its eSIM market growth.


COVID-19 Analysis


Despite the COVID-19 disruption, the eSIM technology is still garnering significant market prominence, witnessing significant changes in people's lifestyles. Industry players are leveraging eSIM card benefits to ensure that the internet and communication systems continue to provide their services uninterruptedly in line with increasing needs. Pre pandemic, the eSIM technology was already having a big impact on the telecom industry.


The deployment of relevant servers for eSIM systems are developed by information technologies and the communication authority complies with the domestic requirement and GSMA standards. With the help of the eSIM chip installed and managed remotely, a higher security and protection level can be provided. In the future, the eSIM application would provide serious access and ease of use both between machines and consumer devices. 


The proliferation of industrial automation and the adoption of automation & control technologies that offset higher wages and increase efficiency have highlighted the crucial need for the eSIM network. Resultantly, the global eSIM industry began to garner traction, witnessing continually increasing investments.


Market Dynamics 


Drivers


eSIM Advantages to Bolster Market Opportunities 


With eSIM, subscribers are able to make operator changes without going to dealers, which help eliminate costs arising from device procurement. Moreover, problems such as buying, stocking, and installing the SIM card can be eliminated. Besides, eSIM features remain unaffected by problems such as vibration, impact, and moisture in vehicles and other devices.


eSIM chip is a key innovation in telecommunication, improving connectivity operations. The eSIM technology restricts sensitive SIM card information limited to local uses without allowing other countries to access the sensitive data ensuring enhanced information security. Resultantly, eSIM users are increasing rapidly, boosting the growth of the market.


Opportunities


Penetration of a Cloud-based eSIM for Internet of Things (IoT) Devices 


Many enterprises are increasingly relying on mobile devices to operate and access data in the cloud. Moreover, cellular-enabled connectivity solutions for the large-scale global deployment of IoT devices are increasing significantly. This, along with the rise in the number of M2M connections globally, shows that there are immense opportunities in the eSIM market.


It is also projected that a majority of eSIM-based devices would have a hardware chip-based eSIM solution until 2025, which would substantiate the adoption of integrated SIM-based solutions. Furthermore, rising uses of eSIM-embedded smartphones and smartwatches to make it easier to manage devices and accounts, alongside the proliferation of enterprise IoT devices, would significantly influence the eSIM market share. 


Restraints & Challenges


Lack of Technical Expertise to Restrain Market Growth


Despite the lucrative growth opportunities, factors such as the lack of technical expertise and network security are estimated to restrict the eSIM market growth. Security threats in wireless communication are rising continually. 


Changing trends in network techniques are projected to act as major growth hindering factors for the market during the forecast period. Also, significantly higher costs of eSIM compared to a conventional SIM are expected to restrain the market growth in the coming years. 


Cumulative Growth Analysis


Market Size to Expand at a Strong Rate 


Considering the present market scenario, it is estimated that the eSIM market share is expected to increase further during the review period, witnessing the increasing adoption of eSIM technology. Additionally, diverse application areas, such as data center & enterprise networking, industrial automation, and others, offer ample opportunities for the market and players. Well-spread awareness about the e-SIM importance and the burgeoning telecom industry is projected to exponentially drive market growth.


Segment Overview 


The eSIM market is segmented into end-user and regions. The end-user segment is further sub-segmented into automotive, energy & utilities, manufacturing, retail, consumer electronics, and transportation & logistics. Among these, the consumer electronics segment accounted for the largest market share in 2018, and the segment is predicted to generate revenues of over USD 76.7 Mn during the evaluation period. 


The manufacturing segment accounted for a substantial market share in 2018, owing to the rise in the implementation of IoT industrial solutions. The segment is likely to rise at a 29% CAGR during the forecast period. By regions, the market is segmented into Americas (US, Canada, Mexico, Rest-of-North America), Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), Europe (Germany, UK, France, Italy, and Rest-of-Europe), and Rest-of-the-World.


Regional Analysis


North America to Maintain its Leading Position


North America leads the global eSIM market and would continue to maintain its market position throughout the assessment period. Factors such as technological advances, early migration to eSIM, and the early adoption of advanced IoT and artificial intelligence (AI) technologies drive the eSIM market growth. Besides, the presence of many eSIM network service providers, such as AT&T, Deutsche Telekom AG, Verizon Wireless, and Virgin Mobile, across the region boosts the market growth. 


Europe Holds Second Highest Share in Global Market 


Europe accounts for the second-biggest share in the global market. The region houses the leading embedded SIM (eSIM) market/ eSIM technology market and embedded SIM chip developers. Additionally, the presence of several platform vendors who provide the underlying hardware for eSIM integration drives the eSIM industry. Germany is expected to gain the highest eSIM market share, followed by the UK, Spain, and the rest-of-Europe.


APAC Holds a Considerable Share in the Global Market 


The APAC eSIM market size is fostered by the increasing industrial automation and adoption of smartphones and new technology. Moreover, rising numbers of IT & telecommunication industries in the region drive the eSIM market share. Japan, South Korea, China, and India hold significant shares in the APAC e-SIM market.


Competitive Landscape


Players Focus on Product Development to Gain Impetus


The eSIM market appears extremely fragmented, considering the presence of established manufacturers. Eminent players seek opportunities to integrate across the extensive value chain while focusing on expanding production capacities, R&D investments, and M&A activities to gain additional impetus. They deliver reliable, leading-edge embedded SIM cards for embedded SIM market applications, substantially investing in developing adept technologies and products like embedded SIM chips. 


List of Key Companies 



  • STMicroelectronics (Switzerland)

  • Infineon Technologies AG (Germany)

  • NXP Semiconductors (Netherlands)

  • Deutsche Telekom AG (Germany)

  • Gemalto NV (Netherlands)

  • NTT Docomo Inc. (Japan)

  • Giesecke+Devrient GmbH (Germany)

  • Sierra Wireless (Canada)

  • Singtel (Singapore)

  • Telefonica SA (Spain) 


Tata Communications Limited, an Indian telecommunications company, enables a digital ecosystem that powers today's fast-growing digital economy. Through this investment, the company plans to focus on the software layer of its MOVE portfolio and foster further innovation in eSIM technology through product roadmap R&D. Tata Communications has been collaborating with Oasis since 2017 and now plans to integrate its eSIM technology with its own MOVE mobility and IoT platform.


Recent Developments


January 09, 2021 – MTN launched a new eSIM solution for people in Africa. The newly improved eSIM can support several Apple and Samsung devices. With the expansion of inserted SIM (eSIM) associations on chosen cell phones, MTN users' digital journey takes another move forward.


 January 05, 2021 – International networking and ICT services firm Tata Communications announced the acquisition of a 58.1% stake in Oasis Smart SIM (France), a leading embedded SIM (eSIM) technology specialist. Oasis develops and provides advanced technologies and personalized services to enable the deployment of eSIM and SIM technologies.


January 06, 2021 – Zain KSA, in collaboration with Nokia, plans to roll out 60,000 5G FastMile Gateway 3.1 with eSIM across Saudi Arabia over the next 12 months. The move allows Zain KSA to support smart home and office adoption in the country with enhanced connectivity for smart devices through 5G and Wi-Fi 6, guaranteeing an improved customer experience.


December 24, 2020 – Turkey Transport and Infrastructure introduced its new generation GSM technology, eSIM, taking an important step in mobile communications. The new technology was developed using domestic resources and up-to-date technology and would be used in various products, including smartphones, wearable technologies, and machine-to-machine communication to many industrial merchandises.


July 20, 2020 – Vodafone Idea launched an eSIM facility in India. The company has claimed that its postpaid connection users would no longer need a physical SIM card to make calls or access internet facilities.


Report Overview 


The report features unique and relevant factors estimated to significantly impact the eSIM industry during the review period. This detailed and considerable amount of information can help industry players understanding the market better. The report elaborates on the historical and current trends boosting the growth of the eSIM market. Additionally, the analysis of COVID-19 impact on the eSIM market is also included in the report. 


Regional analysis in this report unlocks several untapped opportunities in regional and domestic markets. Detailed company profiling in the report enables users to evaluate company shares, emerging products, and the scope of the product in emerging markets, pricing strategies, innovation possibilities and much more.


Segmentation Table


By End-User



  • Automotive

  • Energy & Utilities

  • Manufacturing

  • Retail

  • Consumer Electronics

  • Transportation & Logistics

  • Others


By Region 



  • North America

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 913.9 Million (2024)
  CAGR   28.0% (2019-2024)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   by type
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   STMicroelectronics (Switzerland), Infineon Technologies AG (Germany), NXP Semiconductors (Netherlands), Deutsche, Telekom AG (Germany), Gemalto NV (Netherlands), NTT Docomo Inc. (Japan), Giesecke+Devrient GmbH (Germany), Sierra Wireless (Canada), Singtel (Singapore), Telefonica SA (Spain)
  Key Market Opportunities

  • Many enterprises are increasingly relying on mobile devices to operate and access data in the cloud. Moreover, cellular-enabled connectivity solutions for the large-scale global deployment of IoT devices are increasing significantly. \r\n
  • This, along with the rise in the number of M2M connections globally, shows that there are immense opportunities in the eSIM market.
  •   Key Market Drivers   Well-spread awareness about the e-SIM importance and the burgeoning telecom industry is projected to exponentially drive market growth.


    Frequently Asked Questions (FAQ) :


    An Emerging Subscriber Identification Module (SIM) or eSIM is a standard that aims to overcome the limitations of traditional SIM cards. It is reliant on secure over-the-air remote SIM provisioning which allows the subscriber to wirelessly join a network provider without the need of a traditional SIM card.

    The eSIM market has been segmented on the basis of end user and region. Based on end user, the e-SIM market has been segmented into automotive, energy & utilities, manufacturing, retail, consumer electronics, and transportation & logistics. The consumer electronics segment accounted for the largest market share in 2018, and the manufacturing segment is expected to register the highest CAGR of 29.0% during the forecast period. Geographically, the global eSIM market has been segmented into Asia-Pacific, North America, Europe, the Middle East & Africa, and South America.

    Infineon Technologies AG (Germany), STMicroelectronics (Switzerland), NXP Semiconductors. (Netherlands), Gemalto NV.(Netherlands), Deutsche Telekom AG (Germany), Giesecke+Devrient GmbH (Germany), NTT Docomo, Inc. (Japan), Sierra Wireless., (Canada), Telefonica S.A. (Spain), and Singtel (Singapore).

    The Global eSIM Market is expected to expand at 28.0% CAGR during the forecast period to reach 913.9 million in 2024.

    In September 2018, STMicroelectronics revealed a highly integrated mobile-security solution–ST54J. It is a system-on-chip (SoC) IC that contains a near-field communication (NFC) controller and e-SIM. Single-chip ST54J ensures faster contactless interaction than a discrete chipset and data exchange between the secure element and NFC controller. • In February 2018, NXP Semiconductor launched SN100U, the first e-SIM chipset. The single-die chipset includes an embedded secure element (SE), NFC, and e-SIM for added advanced functionality, cellular connectivity, and security. The product is developed for OEMs to integrate applications for mobile transit, smart access control, contactless payments, and platform security. • In February 2018, Deutsche Telekom launched a multi-device management (MDM) software to integrate the e-SIM connectivity for automotive applications. The MDM application provides navigation services for the riders. • In June 2018, NTT DOCOMO and China Mobile partnered to provide e-SIM solutions to enable cross-vendor SIM profile switching from DOCOMO to China Mobile. The partnership allows the former to expand its business in China