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

Market Overview


Global eSIM Market is projected to garner a valuation of USD 913.9 Million by 2027, registering a 28% CAGR during the forecast period (2021–2027).


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)

1 Executive Summary

2 Market Introduction

2.1 Definition 13

2.2 Scope Of The Study 13

2.3 Market Structure 13

3 Research Methodology

3.1 Research Process 14

3.2 Primary Research 15

3.3 Secondary Research 16

3.4 Market Size Estimation 16

3.5 Forecast Model 17

3.6 List Of Assumptions 18

4 Market Insights

5 Market Dynamics

5.1 Introduction 22

5.2 Drivers 23

5.2.1 Push By The GSMA—Partnerships And Collaborations With Providers 23

5.2.2 Growth Of IoT 23

5.2.3 Drivers Impact Analysis 23

5.3 Challenge 24

5.3.1 Customer Churn And Loyalty 24

5.4 Opportunities 24

5.4.1 Growing Demand For Connected Solutions 24

6 Market Factor Analysis

6.1 Value Chain Analysis 25

6.1.1 Vendors/Service Providers 26

6.1.2 Telecom Service Providers 26

6.1.3 End Users 26

6.2 Porter’s Five Forces Model 27

6.2.1 Threat Of New Entrants 27

6.2.2 Bargaining Power Of Suppliers 28

6.2.3 Threat Of Substitutes 28

6.2.4 Bargaining Power Of Buyers 28

6.2.5 Competitive Rivalry 28

6.3 Best Practices 29

6.3.1 E-SIM Specifications 29

6.3.2 E-SIM Compliance 29

6.4 Use Cases 29

7 Global ESIM Market, By End User

7.1 Overview 30

7.2 Automotive 30

7.2.1 Connected Cars 30

7.2.2 Emergency Systems 30

7.2.3 Entertainment 30

7.3 Energy & Utilities 31

7.4 Manufacturing 31

7.5 Retail 31

7.6 Consumer Electronics 31

7.6.1 Laptops 31

7.6.2 Smartphone 31

7.6.3 Tablets 31

7.6.4 Wearables 31

7.7 Transportation & Logistics 32

7.7.1 Fleet Management 32

7.7.2 M2M 32

8 Global ESIM Market, By Region

8.1 Overview 34

8.2 North America 35

8.2.1 US 37

8.2.2 Canada 38

8.2.3 Mexico 39

8.3 Europe 40

8.3.1 Germany 42

8.3.2 UK 43

8.3.3 Rest Of Europe 44

8.3.4 Spain 45

8.4 Asia-Pacific 46

8.4.1 China 48

8.4.2 Japan 49

8.4.3 Rest Of Asia-Pacific 50

8.4.4 India 51

8.5 Rest Of The World 52

8.5.1 Middle East And Africa 54

8.5.2 South America 55

9 Competitive Landscape

9.1 Competitive Overview 56

9.2 Competitive Benchmarking 57

10 Company Profiles

10.1 Infineon Technologies AG 58

10.1.1 Company Overview 58

10.1.2 Financial Overview 59

10.1.3 Products/Services/Solutions Offered 59

10.1.4 Key Developments 60

10.1.5 SWOT Analysis 60

10.1.6 Key Strategies 60

10.2 STMicroelectronics 61

10.2.1 Company Overview 61

10.2.2 Financial Overview 61

10.2.3 Products/Services/Solutions Offered 62

10.2.4 Key Developments 62

10.2.5 SWOT Analysis 62

10.2.6 Key Strategies 63

10.3 NXP Semiconductors 64

10.3.1 Company Overview 64

10.3.2 Financial Overview 64

10.3.3 Products/Services/Solutions Offered 65

10.3.4 Key Developments 65

10.3.5 SWOT Analysis 65

10.3.6 Key Strategies 65

10.4 Gemalto NV 66

10.4.1 Company Overview 66

10.4.2 Financial Overview 67

10.4.3 Products/Services/Solutions Offered 67

10.4.4 Key Developments 68

10.4.5 SWOT Analysis 68

10.4.6 Key Strategies 69

10.5 Deutsche Telekom AG 70

10.5.1 Company Overview 70

10.5.2 Financial Overview 71

10.5.3 Products/Services/Solutions Offered 71

10.5.4 Key Developments 72

10.5.5 SWOT Analysis 72

10.5.6 Key Strategies 72

10.6 Giesecke+Devrient GmbH 73

10.6.1 Company Overview 73

10.6.2 Financial Overview 73

10.6.3 Products/Services/Solutions Offered 74

10.6.4 Key Developments 74

10.6.5 SWOT Analysis 75

10.6.6 Key Strategies 75

10.7 NTT DOCOMO, INC. 76

10.7.1 Company Overview 76

10.7.2 Financial Overview 76

10.7.3 Products/Services/Solutions Offered 77

10.7.4 Key Developments 77

10.7.5 SWOT Analysis 77

10.7.6 Key Strategies 77

10.8 Sierra Wireless 78

10.8.1 Company Overview 78

10.8.2 Financial Overview 79

10.8.3 Products/Services/Solutions Offered 79

10.8.4 Key Developments 79

10.8.5 SWOT Analysis 80

10.8.6 Key Strategies 80

10.9 Telefonica S.A. 81

10.9.1 Company Overview 81

10.9.2 Financial Overview 82

10.9.3 Products/Services/Solutions Offered 82

10.9.4 Key Developments 82

10.9.5 SWOT Analysis 83

10.9.6 Key Strategies 83

10.10 Singtel 84

10.10.1 Company Overview 84

10.10.2 Financial Overview 85

10.10.3 Products/Services/Solutions Offered 85

10.10.4 Key Developments 85

10.10.5 SWOT Analysis 86

10.10.6 Key Strategies 86


11 List Of Tables

TABLE 1 LIST OF ASSUMPTIONS 18

TABLE 2 GLOBAL ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 33

TABLE 3 GLOBAL ESIM MARKET, BY REGION, 2020–2027 (USD MILLION) 34

TABLE 4 NORTH AMERICA: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 35

TABLE 5 NORTH AMERICA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 36

TABLE 6 US: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 37

TABLE 7 CANADA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 38

TABLE 8 MEXICO: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 39

TABLE 9 EUROPE: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 40

TABLE 10 EUROPE: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 41

TABLE 11 GERMANY: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 42

TABLE 12 UK: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 43

TABLE 13 REST OF EUROPE: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 44

TABLE 14 SPAIN: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 45

TABLE 15 ASIA-PACIFIC: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 46

TABLE 16 ASIA-PACIFIC: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 47

TABLE 17 CHINA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 48

TABLE 18 JAPAN: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 49

TABLE 19 REST OF ASIA-PACIFIC: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 50

TABLE 20 INDIA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 51

TABLE 21 REST OF THE WORLD: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 52

TABLE 22 REST OF THE WORLD: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 53

TABLE 23 MIDDLE EAST AND AFRICA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 54

TABLE 24 SOUTH AMERICA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 55


12 List Of Figures

FIGURE 1 MARKET SYNOPSIS 12

FIGURE 2 GLOBAL ESIM MARKET: MARKET STRUCTURE 13

FIGURE 3 RESEARCH PROCESS OF MRFR 14

FIGURE 4 TOP DOWN & BOTTOM UP APPROACH 17

FIGURE 5 GLOBAL MARKET SIZE & MARKET SHARE BY COUNTRY (2020 VS 2027) 19

FIGURE 6 NORTH AMERICA MARKET SIZE & MARKET SHARE BY COUNTRY (2020 VS 2027) 19

FIGURE 7 ASIA-PACIFIC MARKET SIZE & MARKET SHARE BY COUNTRY (2020 VS 2027) 20

FIGURE 8 EUROPE MARKET SIZE & MARKET SHARE BY COUNTRY (2020 VS 2027) 20

FIGURE 9 REST OF THE WORLD MARKET SIZE & MARKET SHARE BY COUNTRY (2020 VS 2027) 21

FIGURE 10 DRO ANALYSIS OF GLOBAL ESIM MARKET 22

FIGURE 11 DRIVERS IMPACT ANALYSIS: ESIM MARKET 23

FIGURE 12 VALUE CHAIN: GLOBAL ESIM MARKET 25

FIGURE 13 PORTER'S FIVE FORCES ANALYSIS OF THE GLOBAL ESIM MARKET 27

FIGURE 14 GLOBAL ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 32

FIGURE 15 GLOBAL ESIM MARKET, BY REGION, 2020–2027 (USD MILLION) 34

FIGURE 16 NORTH AMERICA: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 35

FIGURE 17 NORTH AMERICA: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 36

FIGURE 18 EUROPE: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 40

FIGURE 19 EUROPE: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 41

FIGURE 20 ASIA-PACIFIC: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 46

FIGURE 21 ASIA-PACIFIC: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 47

FIGURE 22 REST OF THE WORLD: ESIM MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 52

FIGURE 23 REST OF THE WORLD: ESIM MARKET, BY END USER, 2020–2027 (USD MILLION) 53

FIGURE 24 COMPETITIVE BENCHMARKING ANALYSIS 57

eSIM Market