eSIM Market Research Report - Global Forecast till 2030

eSIM Market Research Report: By End User (Automotive, Energy & Utilities, Manufacturing, Retail, Consumer Electronics, Transportation & Logistics) - Forecast till 2030

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

eSIM Market

The eSIM Market is projected to garner a valuation of USD 5.71 Billion by 2030, registering a 31.4% CAGR during the forecast period (2020–2030)

Segmentation

By End User Automotive Energy & Utilities Manufacturing Retail Consumer Electronics Transportation & Logistics

Key Players

  • STMicroelectronics (Switzerland)
  • Infineon Technologies AG (Germany)
  • NXP Semiconductors (Netherlands)
  • Deutsche
  • Telekom AG (Germany)
  • Gemalto NV (Netherlands)
  • NTT Docomo Inc. (Japan)

Drivers

  • The adoption of the sim with M2M Capabilities is a demand driving factor of the market
  • Remote provisioning features of these Sims leads to higher adoption.
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E-Sim Market Overview


eSIM Market is projected to garner a valuation of USD 5.71 Billion by 2030, registering a 31.4% CAGR during the forecast period (2020–2030). The user can simultaneously use more than one device with the use of this product. Remote use is possible for the user. With the use of eSIM, the users do not have to replace the sim cards. There are both soldered and removable forms of this sim in this market. With this sim, the user can use multiple network operators at the same time.


 This universal integrated embedded card is smaller than the length of 6mm. its unique features increase the demand of the eSIM market. The M2 capabilities of this sim create exceptional adoption from various verticals. In the upcoming years, internet of things devices is expected to dominate mobile phones. Connected devices can work efficiently with the help of eSIM.


 The wearable’s market benefits higher from this technology. Extra space and more functions of wearable’s are possible through the sim. This market has higher demand from the automotive user end. Automotive has a higher requirement of eSIM in transmissions. Even the consumer electronics market has wider benefits due to eSIM. As per eSIM Market Forecast, Flexible and efficient functions attract many end-users to the market. 


COVID Analysis 


The outbreak of covid 19 is leading to unexpected changes in global industries. Most of the industries are affected from economic and health end. The rapid spread of the virus disturbs the market operations. Most of the industries are shut down in this period. Supply chain disruptions and low production are challenges in many markets. The eSIM market has a few challenges in this period. The production rate of the market is declining in this period. Also, due to shipments issues delayed deliveries affect growth.


The adoption of eSIM is declining in many regions. However, the market is following other methods to improve demand. Digital activation of eSIM sustains the overall market growth. The developed regions of the market are providing an uninterrupted flow of digital experience to users. They are establishing digital activation of eSIM. Users do not have to visit a physical store for this process. High efficiency and more growth are expected post covid 19. 


Market Dynamics 



  • Crucial Market Drivers 


The adoption of the sim with M2M Capabilities is a demand driving factor of the market. Remote provisioning features of these Sims leads to higher adoption. The eSIM is exceptional to carry out M2M services. Straightforward and seamless connections are possible through this technology. Universal connectivity is one of the markets is that drive demand for the market. The enterprises have a massive demand for universal connections.


 Most SIMs and network operators provide universal services at a high cost. Also, most of these services come with less quality. This factor is expected to higher the expansion of the E-sim market. Today, operational efficiency is essential in many organisations. Good communications help to establish exceptional efficiency. With better communication quick responses are possible. Telecommunication, IT and customer services have a higher expansion of the market.


Also, secure connections and communications are possible through technology. Mostly, communications to other countries require the use of third-party apps. However, the E-sim is reliable as it offers custom solutions. The communications and data over voice are stored in a mobile network. Reliable operators manage the communications in this network. All these factors provide exceptional eSIM Market Growth. 



  • The Market Growth Opportunities 


The emergence of IoT will provide high scope for the market. The eSIM allows communication over the connected device. The expansion of the services of this market will rise in the upcoming years. The added feature in the Global eSIM Market will provide exceptional demand from various verticals. The launch of IoT services with eSIM can create communization facilities in many devices. This growth opportunity will increase the profitability of the market. Further, demand from emerging nations is another growth factor.


Emerging nations have a high demand for communication services. The Asia Pacific, China and Japan are key manufacturers of eSIM. In the upcoming region adoption of eSIM will grow exceptionally. A rise in smart solutions will increase penetration of the eSIM market. Smart solutions can incorporate eSIM. Using the same details and communication details to carry out an effective application in the organisation is possible. These growth factors will create more demand for IoT integrated eSIM. 



  • The Market Restraints 


The lack of technical expertise is a restraining factor of the eSIM Industry. ESIM is mostly used for business operations. Individuals with technical expertise can use this sim. Further, eSIM is a technology that is used in connected cars, M2M and laptops. It is used mostly in technologies and the customer service market.


 The need for technical expertise is higher to use the market. Poor management of the market can lead to less efficiency in the market. All these restraints of the market can affect the growth rate of the market. In many organisations, the number of individuals to operate this technology is less. These restraints can be immense with the revenue rates of the market in the forecast period. 



  • The Market Challenges 


Lack of awareness about the eSIM market is a restraining factor. E-SIM has a higher requirement in emerging markets. The enterprise can benefit from this technology. A rise in operational efficiency is a crucial benefit of this market. However, a lack of awareness can decline the demand for the market.


Penetration of eSIM is less in developing nations. This challenge can affect the adoption rate. Further, less availability of compatible devices is another challenge. There are not many devices that are compatible with eSIM. Less compatibility can lead to less demand for end users. The key players will hesitate to adopt this technology due to a lack of resources. These are serious market restraints that can reduce revenue rates in the forecast period. 



  • Cumulative Growth Analysis 


The eSIM Market Analysis shows a positive growth trend. There are plenty of factors that boost the demand of the market. It is a revolutionary technology that comes with AI and M2M capabilities. This electronic SIM can analyse and make decisions. The machine learning capabilities raise its value in the global market.


Effective responses and quick communications are factors driving the growth of this market. Lack of technical expertise is a serious restraint in the market. The adoption from end-user can decrease. Also, lack of awareness is another challenge of the market. All these can impede market growth. Still, technological advancement sustains the overall market growth. The future opportunities will create favourable changes in the market. 



  • Value Chain Analysis 


The Asia Pacific is the leading market player with higher eSIM Market Share. The penetration of smartphones is higher in this market. The consumer electronics sector is booming in these regions. It is leading to higher production of eSIM. The investments for the eSIM are high. The Asia Pacific includes countries such as China, India and Japan.


These presence of eSIM Market Players will lead to growth. Through eSIM there are plenty of tasks achievable by the organisations. Mobile internet penetration is another reason for high demand. Through mobile phones and the internet eSIM, applications are seamless. It is a region that will witness high growth in the forecast period. 


Segment Overview 


eSim Market Segments


By Vertical 



  • Manufacturing 

  • Consumer electronics 

  • Energy and utilities 


By Applications 



  • Smartphones 

  • Connected cars 

  • M2M 

  • Laptops 


By Geography 



  • Asia pacific 

  • Europe 

  • North America 


Competitive Landscape 


Competition in the eSIM market is higher in the forecast period. The entrance of new key players is expected to increase. Further, the compatible devices for the market will increase in upcoming years.


Further, the key players of the market are increasing initiatives to create more awareness. The competitive landscape will include market expansions, mergers, collaborations and acquisitions. 


Regional Analysis 


eSIM market is fragmented into Asia Pacific, Europe and North America. North America is an early adopter of the eSIM market. The Asia Pacific is the leading eSIM market. Internet penetration and smartphones create high demand for the market. Also, rising awareness about the sim is gaining more traction in many enterprises.


 North America is another market having exceptional growth for the eSIM market. Higher investments are raising adoption and new developments in the region. Europe is another market having exceptional requirements for the market. The automotive industry has a massive demand for eSIM. Controlling high need vehicles is possible through these SIMs. All these key regional players will contribute to high profitability for the market.


The key players of the eSIM market are 



  • Singapore Telecommunications Limited

  • Telephonic, S.A

  • Deutsche Telekom AG

  • NTT DOCOMO INC

  • Giesecke & Devrient GmbH

  • STMicroelectronics 

  • Infineon Technologies AG

  • NXP Semiconductors N.V

  • Gemalto NV

  • Sierra Wireless


Recent Developments 



  • The penetration of the eSIM market is high in emerging economies. The growth potential for the market is higher in these regions. All these factors will increase supply in regions such as the Middle East. 

  • The use of eSIM in the automotive sector is high in upcoming years. Uniquely designed Sims is launched to support the automotive industry. 


Report Overview 



  • Market Overview Highlights 

  • Analysis Based Upon COVID 19

  • Explanation Upon The Market Dynamics

  • Value Chain Analysis

  • Market Segmentation Overview

  • The Regional Analysis

  • Competitive Landscape Analysis

  • Recent Developments



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 5.71 Billion (2030)
  CAGR   31.4% (2020-2030)
  Base Year   2019
  Forecast Period   2020-2030
  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.


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    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 31.4% CAGR during the forecast period to reach USD 5.71 Billion in 2027.

    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