eSIM Market by Application (Connected Cars, Laptops, M2M), Vertical (Automotive, Consumer Electronics, Energy & Utilities) - Global Forecast 2024-2030

eSIM Market by Application (Connected Cars, Laptops, M2M), Vertical (Automotive, Consumer Electronics, Energy & Utilities) - Global Forecast 2024-2030

The eSIM Market size was estimated at USD 11.76 billion in 2023 and expected to reach USD 13.54 billion in 2024, at a CAGR 15.27% to reach USD 31.82 billion by 2030.

An Embedded Subscriber Identity Module (eSIM) is a digital SIM that allows users to activate a cellular plan from a carrier without the requirement of a physical SIM card. eSIMs serve the same purpose as traditional SIM cards; however, they are built into the device and cannot be removed. This technology enables easier switching between carriers and plans and supports multiple accounts that can be managed directly from the device's settings. eSIMs provide greater flexibility and simplify the process of device connectivity, which is especially valuable for modern Internet of Things (IoT) applications, smart devices, and frequent travelers. The eSIM market is fueled by the rapid surge in Internet of Things (IoT) device adoption, offering a vital compact solution for improved global connectivity and remote carrier switches. The prevalence of eSIM is further propelled by consumer demand for enhanced connectivity amidst travel and device shifts. However, adopting the eSIM standard entails considerable security threats associated with connected systems, which are potential barriers to expansion. The rollout of 5G presents a lucrative market opportunity, as this technology is anticipated to amplify network capabilities and revolutionize the user experience, thereby driving eSIM usage.

Regional Insights

The eSIM market in the Americas is experiencing vigorous growth, primarily fueled by robust adoption of consumer electronics and significant investments in eSIM technology by leading telecommunications companies in the U.S. Latin America is also on an upward trend, it progresses at a more moderate pace due to growing smartphone adoption and enhancements in telecom infrastructure. The EMEA region displays a varied growth landscape, with Europe having eSIM adoption driven by strict digital transformation regulations and a high presence of eSIM solution providers. The demand for smart devices and IoT applications, alongside advancements in the automotive sector are key factors pushing the market forward. The Middle East and Africa are witnessing a gradual increase in adoption, with Gulf countries spearheading due to strategic smart city and IoT initiatives. The Asia-Pacific region is witnessing accelerated growth in the eSIM market, propelled by the rapid adoption of smartphones and IoT devices in China, Japan, South Korea, and Australia. The increased 5G investments, and government policies favoring digital transformation, are further boosting the adoption of eSIM in the Asia-Pacific region.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the eSIM Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

• Rising Focus on Remote SIM Provisioning for M2M
• Growth in the Number of IoT Connected Devices in Different End-Use Verticals
• Policy and Regulatory Aspects Related to M2M Communications

Market Restraints

• Rising Security Concerns
• Issues in Transfer of the Credentials into a Different Device

Market Opportunities

• eSIM for 5G Cellular Connectivity to IoT-M2M Devices
• Rising Smart Vehicle Segment

Market Challenges

• Technical challenges in eSIM integration and deployment

Market Segmentation Analysis

• Application: Significant penetration of eSIM in smartphones
• Vertical: eSIM revolutionizing connectivity in automotive industry

Market Disruption Analysis

• Porter’s Five Forces Analysis
• Value Chain & Critical Path Analysis
• Pricing Analysis
• Technology Analysis
• Patent Analysis
• Trade Analysis
• Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the eSIM Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the eSIM Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Sensorise Launched Travel eSIM for Consumers

Sensorise launched a consumer travel eSIM, specifically designed to meet the needs of corporate and leisure travelers and students. The innovative eSIM solution, accessible in 190 countries via the Sensorise mobile application, presents a cost-effective alternative to conventional international roaming services offered by traditional telecom providers.

Telefónica Invests in Airalo in a Round That Closes with 60 Million Dollars

Telefónica has invested in Airalo through its investment arm, Telefónica Ventures. The investment forms part of a USD 60 million Series B funding that Airalo has successfully garnered. The eSIM technology of Airalo simplifies the process for travelers by providing a seamless, digital means of connecting to local networks in various destinations without requiring a physical SIM card. The investment is earmarked for significant expansion objectives, including scaling the user base of Airalo, which spans millions. In addition, the funding is expected to assist in the growth of their international team and facilitate the launch of Airalo Partners, an initiative set to provide top-tier connectivity solutions for a wide array of businesses and organizations globally.

IDEMIA collaborates with Microsoft to Provide Next-generation eSIM Connectivity Services

IDEMIA collaborated with Microsoft to usher in a new era of eSIM technology and connectivity services for consumer devices and the Machine-to-Machine/Internet of Things sector. The collaboration leverages the unparalleled expertise of IDEMIA in advanced connectivity solutions. The companies aim to enhance global eSIM service support, providing mobile operators with highly reliable solutions featuring superior service availability and advanced protection against cybersecurity threats such as DDoS attacks. The collaboration signifies a strategic move toward accommodating the rising demand for connected services across many eSIM-integrated devices, from smart meters to vehicles, and fortifying mobile authentication frameworks.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the eSIM Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the eSIM Market, highlighting leading vendors and their innovative profiles. These include Apple, Inc., AT&T Inc., Deutsche Telekom AG, Etisalat Group, Giesecke+Devrient GmbH, GSM Association., IDEMIA Group, Infineon Technologies AG, Kigen Ltd., Maya Virtual, Inc., Microsoft Corporation, NTT Docomo Inc., NXP Semiconductors N.V., Oasis Smart SIM, Orange S.A., Quectel Wireless Solutions Co., Ltd., Samsung Electronics Co., Ltd., Sierra Wireless, Inc., Singapore Telecommunications Limited, STMicroelectronics N.V., TelcoVillage GmbH, Telefónica, S.A., Telenor Connexion AB, Telit Communications, Thales Group, and Vodafone Group PLC.

Market Segmentation & Coverage

This research report categorizes the eSIM Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Application
• Connected Cars
• Laptops
• M2M
• Smartphones
• Tablets
• Wearables
• Vertical
• Automotive
• Consumer Electronics
• Energy & Utilities
• Manufacturing
• Retail
• Transportation & Logistics
• Region
• Americas
• Argentina
• Brazil
• Canada
• Mexico
• United States
• California
• Florida
• Illinois
• New York
• Ohio
• Pennsylvania
• Texas
• Asia-Pacific
• Australia
• China
• India
• Indonesia
• Japan
• Malaysia
• Philippines
• Singapore
• South Korea
• Taiwan
• Thailand
• Vietnam
• Europe, Middle East & Africa
• Denmark
• Egypt
• Finland
• France
• Germany
• Israel
• Italy
• Netherlands
• Nigeria
• Norway
• Poland
• Qatar
• Russia
• Saudi Arabia
• South Africa
• Spain
• Sweden
• Switzerland
• Turkey
• United Arab Emirates
• United Kingdom

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