South & Central America eSIM Market Size and Forecast (2021 - 2031) Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Hardware and Software & Services) and Type (Consumer eSIMs, IoT eSIMs, and Travel eSIMs)

The eSIM market in South and Central America is poised for significant growth, with projections indicating that the market size will reach approximately USD 396.43 million by 2031, up from USD 167.04 million in 2024. This growth trajectory reflects a compound annual growth rate (CAGR) of 14.8% from 2025 to 2031, highlighting the increasing adoption of eSIM technology across the region.

Executive Summary and Market Analysis

The momentum behind the eSIM market in South America is driven by both mobile operators and consumers who are recognizing the operational and technological benefits of eSIMs. Mobile operators are actively promoting the transition from traditional physical SIM cards to eSIMs, which helps reduce costs associated with logistics, inventory, and storage. Additionally, eSIMs facilitate access to the full capabilities of 5G Standalone networks, which is crucial as countries in the region enhance their digital infrastructure.

In Brazil, the shift towards eSIM technology is particularly notable. Leading operators like TIM are simplifying the transition process for customers. In September 2024, TIM introduced a dedicated portal that allows users to exchange their physical SIM cards for eSIMs at no cost. Customers only need to provide basic information, such as their CPF (Cadastro de Pessoas Físicas) and device type, to receive an activation code for the migration. This initiative not only improves customer convenience but also aligns with broader efforts to modernize telecommunications services across the country. As Brazil continues to expand its 5G coverage, the demand for eSIM-compatible devices and services is expected to rise significantly.

Strategic Insights

Market Segmentation Analysis

The South and Central America eSIM market can be segmented based on components and types. In terms of components, the market is divided into hardware and software & services, with the hardware segment holding a larger share in 2024. By type, the market is categorized into consumer eSIMs, IoT eSIMs, and Travel eSIMs, with consumer eSIMs dominating the market share in 2024. The consumer eSIM segment is further divided into sub-segments, including smartphones, connected cars, wearables, laptops, tablets, and others.

Market Outlook

The integration of artificial intelligence (AI) into eSIM connectivity solutions is significantly enhancing network performance and user experience. By utilizing real-time data, user behavior analytics, and current network conditions, AI optimizes network selection, ensuring seamless and uninterrupted connectivity. Continuous monitoring and analysis of network performance allow for dynamic switching between eSIM profiles, automatically selecting the most efficient network without requiring user intervention.

As of 2023, approximately 400 network operators worldwide offer eSIM services, establishing a robust foundation for the scalability of AI-driven capabilities across global markets. AI also plays a crucial role in enhancing the security of eSIM technology. Advanced algorithms facilitate real-time threat detection, anomaly identification, and predictive risk mitigation, ensuring the protection of sensitive user data during transmission. These capabilities guarantee that eSIM connectivity remains secure and reliable, even in complex digital environments. Furthermore, AI streamlines eSIM provisioning and lifecycle management across multiple devices, simplifying operations for service providers and enabling efficient remote management of large device fleets without the logistical challenges associated with physical SIM cards. AI-powered activation reduces setup time and complexity, improving the overall user experience and lowering operational costs.

Country Insights

The South and Central America eSIM market comprises several key countries, including Brazil, Argentina, and other regions. Brazil is expected to hold the largest market share in 2024. The rapid expansion of Brazil's eSIM market is fueled by a surge in international tourism and a robust digital infrastructure. In 2024, Brazilian tourism revenue reached a record USD 7.341 billion, surpassing figures from the 2014 FIFA World Cup, with a year-on-year growth of 6.28% linked to a 12.6% increase in international arrivals, totaling 6.65 million visitors. The government's National Tourism Plan has been instrumental in positioning Brazil as a premier travel destination in South America.

As the largest economy in the region, Brazil benefits from a well-established telecommunications network. Investments in 5G infrastructure, such as TIM Brasil's partnership with Nokia in August 2024 to expand coverage across 15 states, further enhance mobile connectivity nationwide. For travelers, eSIM technology provides a seamless alternative to traditional SIM cards, allowing for the activation of digital SIMs either in advance or upon arrival, eliminating the need for physical SIM purchases and ensuring uninterrupted mobile access. With the convergence of rising tourism, government support, and telecom innovation, Brazil is well-positioned to lead in eSIM adoption, benefiting both international visitors and local operators.

Company Profiles

Key players in the South and Central America eSIM market include KORE Wireless, Giesecke Devrient GmbH, IDEMIA France SAS, Infineon Technologies AG, NXP Semiconductors NV, STMicroelectronics NV, Telefonica SA, Thales SA, Vodafone Group Plc, and Deutsche Telekom AG, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to deliver innovative products to consumers and increase their market share. Show more