The global eSIM market size was valued at USD 8.07 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.9% from 2023 to 2030. The market growth is driven by the rising adoption of IoT-connected devices in M2M applications and consumer electronics. There is an upsurge in the number of times eSIM profiles were downloaded across consumer devices. The eSIM market is propelling due to the rise in the adoption of eSIM-connected devices. According to Mobilise, in 2021, there were 1.2 billion eSIM-enabled devices, with the number expected to climb to 3.4 billion by 2025.
The introduction of eSIM in the automobile industry has provided tremendous flexibility in providing cellular connectivity to trucks and cars while unlocking new capabilities and features. It is expected that within the next several years, all cars will be cellular enabled, resulting in a better driving experience facilitated by novel linked services. Recently, the automotive industry took a giant step toward enabling the next generation of connected automobiles by implementing the GSMA-embedded SIM specification to strengthen vehicle connectivity. It is intended to improve security for various connected services.
Gather more insights about the market drivers, restrains and growth of the eSIM Market
Solution Insights
The connectivity services segment accounted for the largest revenue share of 88.5% in 2022. This rapid expansion can be due to the increasing use of eSIM for M2M connections, which is expected to generate money for network operators through subscription services. MNOs (Mobile Network Operators) provide connectivity services for securely and remotely managing end-user cellular subscriptions. The automotive industry recently backed the GSMA Embedded SIM Specification to strengthen vehicle connection, paving the way for a new generation of connected vehicles. It is projected to improve security for various connectivity services, allowing the market to grow.
Application Insights
The M2M segment held the largest revenue share of 68.1% in 2022. The increasing use of eSIM technology in the automobile industry for M2M communication propels the M2M segment. Furthermore, connected cars are the primary demand drivers in the automotive industry. eSIM implementation in the automobile industry is projected to substantially simplify production and drive the expansion of the connected car market. It is expected to encourage other industries to adopt M2M and IoT technologies.
Regional Insights
North America dominated the market and accounted for the largest revenue share of 39.1% in 2022. and is expected to grow at the fastest CAGR of 8.7% over the forecast period. The growth is due to the network providers' high presence and the region's fastest technological advancements. The growth is due to the network providers' high presence and the region's fastest technological advancements.
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Key Companies profiled:
• Arm Limited
• Deutsche Telekom AG
• Giesecke+Devrient GmbH
• Thales
• Infineon Technologies AG
• KORE Wireless
• NXP Semiconductors
• Sierra Wireless
• STMicroelectronics
• Workz
eSIM Market Segmentation
Grand View Research has segmented the global eSIM market based on solution, application, and region:
eSIM Solution Outlook (Revenue in USD Million, 2017 - 2030)
• Hardware
• Connectivity services
eSIMc Application Outlook (Revenue in USD Million, 2017 - 2030)
• Consumer Electronics
o Smartphones
o Tablets
o Smartwatches
o Laptop
o Others
• M2M
o Automotive
o Smart Meter
o Logistics
o Others
eSIM Regional Outlook (Revenue in USD Million, 2017 - 2030)
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
• Asia Pacific
o China
o Japan
o India
o Australia
o South Korea
• Latin America
o Brazil
o Mexico
• Middle East and Africa
o Saudi Arabia
o South Africa
o UAE
Order a free sample PDF of the eSIM Market Intelligence Study, published by Grand View Research.
Recent Developments
• In May 2023, Lonestar Cell MTN, a South African conglomerate, introduced eSIM technology in Liberia. This advancement allows subscribers to switch to eSIM-compatible devices without the hassle of removing physical SIM cards. Customers can scan a QR code provided at any Lonestar Cell MTN service center.
• In March 2023, Gcore, a public cloud and content delivery network company, launched its Zero-Trust 5G eSIM Cloud platform. This platform offers organizations across the globe a secure and dependable high-speed networking solution. By utilizing Gcore's software-defined eSIM, companies can establish secure connections to remote devices, corporate resources, or Gcore's cloud platform through regional 5G carriers.
• In February 2023, Amdocs, a software company, collaborated with Drei Austria to introduce a groundbreaking eSIM solution. This collaboration enables Drei Austria's customers to access the advantages of digital eSIM technology through a fully app-based experience. The innovative "up" app offers a seamless and entirely digital SIM journey powered by Amdocs' eSIM technology at Drei Austria.
• In December 2022, Grover, a subscription-based electronics rental platform, joined forces with Gigs, a telecom-as-a-service platform, to introduce Grover Connect, its very own mobile virtual network operator (MVNO), in the U.S. Through Grover Connect, customers in the U.S. can effortlessly activate any eSIM-enabled technology device, eliminating the complexities associated with carrier offers and contracts that may not align with their device rental duration.
• In October 2022, Bharti Airtel, a telecommunications service provider based in India, unveiled its "Always On" IoT connectivity solutions. This offering enables seamless connectivity for IoT devices across multiple Mobile Network Operators (MNOs) through an embedded SIM (eSIM) technology. Particularly beneficial for vehicle tracking providers, auto manufacturers, and scenarios where equipment operates in remote areas, requiring uninterrupted and widespread connectivity.
