Straits Research: eSIM Market Report – Growth, Trends, and Insights for 2023-2031
The global eSIM market is on a rapid growth trajectory as more consumers and industries adopt digital and connected technologies. According to the latest report by Straits Research, the eSIM market, valued at USD 8.34 billion in 2022, is projected to reach USD 19.35 billion by 2031, growing at a CAGR of 10.5% during the forecast period (2023–2031).
Market Overview
eSIM (embedded SIM) technology is revolutionizing the way mobile and connected devices access wireless networks. Unlike traditional SIM cards that are removable, eSIMs are embedded directly into devices, enabling users to switch between networks without needing to physically replace SIM cards. This provides greater flexibility, convenience, and support for the growing trend of connected devices across industries.
As 5G networks, IoT devices, and mobile-first businesses continue to rise in popularity, eSIM technology is becoming an essential enabler of connectivity, offering seamless switching between carriers, enhanced security, and a streamlined user experience.
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Key Market Trends and Driving Factors
Several factors are driving the growth of the eSIM market:
Growing Demand for Connected Devices: As the number of connected devices—such as smartphones, wearables, laptops, and IoT-enabled gadgets—continues to rise, there is an increasing demand for eSIM technology. The ability to seamlessly connect and switch between carriers without needing to swap SIM cards is transforming user experiences across multiple industries.
Adoption of 5G Networks: The widespread rollout of 5G networks is fueling the adoption of eSIMs, as these networks require more sophisticated and flexible connectivity solutions. eSIM technology is well-suited to handle the demands of 5G, offering faster speeds, reduced latency, and increased network efficiency.
Rising IoT Applications: eSIMs are particularly beneficial for the growing IoT ecosystem. Whether it’s smart meters, automotive devices, or wearables, eSIMs are helping streamline and secure the communication between IoT devices and networks, making them an essential part of the IoT infrastructure.
Cost-Efficiency for Consumers and Enterprises: With eSIM technology, users can switch mobile operators without the hassle of changing physical SIM cards. This leads to cost savings, especially for businesses with global operations. Enterprises are increasingly leveraging eSIMs for their mobile fleets, reducing the need for physical SIM cards and improving operational efficiency.
Regulatory Support and Industry Standardization: Regulatory bodies worldwide, including the GSMA (Global System for Mobile Communications), have been instrumental in promoting eSIM technology as the industry standard. This backing is providing a solid foundation for the growth of the market, with major telecom players and manufacturers aligning to support eSIM integration.
Opportunities in the eSIM Market
The eSIM market presents numerous opportunities for growth, particularly in the consumer electronics and automotive sectors. With the increasing penetration of eSIMs in mobile phones, tablets, and wearables, manufacturers are exploring new ways to integrate eSIM technology into a wide range of devices.
Additionally, the automotive industry is a major growth driver for the eSIM market. Connected vehicles, which rely on eSIM technology for real-time data exchange and navigation, are becoming more commonplace. As electric vehicles (EVs) and autonomous vehicles gain popularity, eSIM technology will play a key role in enabling efficient, secure, and reliable connectivity.
Furthermore, the growing demand for smart cities and the expanding adoption of smart meters and other smart grid applications create substantial opportunities for eSIM-based solutions, offering improved connectivity for utility and infrastructure management.
eSIM Market Segmentation
The eSIM market is segmented across various components and industries:
By Component: The market is divided into Hardware and Connectivity Services. Hardware includes eSIM modules embedded into devices, while connectivity services involve the mobile network services that provide connectivity to eSIM-enabled devices.
By Deployment Mode: eSIM technology can be deployed through Cloud or On-Premises solutions. The cloud deployment mode is expected to dominate the market due to its scalability and flexibility.
By Network Type: The market is segmented into Private and Public networks. While public networks are widely adopted, private networks are seeing increased demand in industries such as manufacturing and healthcare, where security and reliability are critical.
By Data Plan: Data plans associated with eSIM technology include 2GB-5GB, 5GB-10GB, 10GB-25GB, Less than 2GB, and More than 25GB. As eSIM technology grows, so does the demand for higher data usage, especially in connected devices and IoT applications.
By Architecture: The market is split into M2M (Machine to Machine) and Consumer Electronics eSIM Architecture, with M2M applications growing due to their role in the expanding IoT ecosystem.
By Pricing Model: eSIM pricing models are typically Pay-as-you-go and Pay monthly SIMs, giving consumers and businesses flexibility in how they pay for connectivity.
By End-User: The key sectors utilizing eSIM technology include Consumer Electronics (Mobile Phones, Tablets, Laptops, Wearables, Smart Meters, etc.), Automotive, Manufacturing, Retail, Energy and Utilities, and more.
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Key Players in the eSIM Market
The eSIM market is supported by a range of leading players, including:
- Kigen
- Deutsche Telekom AG
- Giesecke+Devrient Mobile Security GmbH
- Infineon Technologies AG
- KORE Wireless
- NXP Semiconductors N.V.
- Sierra Wireless
- STMicroelectronics
- Thales Group
- Workz Group
- Telefónica
- Semtech Corporation
- ATT
- Orange
- Arm Limited
- Vodafone Group
These key players are innovating with new solutions, forming strategic partnerships, and expanding their presence in global markets to capture the growing demand for eSIM technology.
Table of Contents for the eSIM Market Report: https://straitsresearch.com/report/esim-market/toc
Conclusion
The eSIM market is set for significant growth over the next decade, driven by the increasing need for flexible, secure, and cost-effective connectivity solutions in a rapidly evolving digital world. As industries from mobile communications to automotive and smart cities adopt eSIM technology, the market will continue to evolve, creating new opportunities for businesses and consumers alike.
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