Global ESIM Market Grows at a Staggering CAGR of 10.2%

Introduction

Market expansion is driven by the increasing rise of IoT-connected devices in consumer electronics and M2M applications. The frequency with which eSIM profiles were downloaded onto consumer devices increased. eSIM has enormous potential in the automobile industry and is projected to generate lucrative growth opportunities.

The development of eSIM in the automotive industry has allowed incredible flexibility for equipping trucks and cars with cellular connectivity and enabling new features and capabilities. It is anticipated that all automobiles will be provided with cellular technology in the future, resulting in a better driving experience made possible by unique linked services. Supporting the GSMA Embedded SIM Specification to enhance vehicle connectivity, the automotive sector has taken a significant step toward enabling the next generation of connected vehicles. This is meant to strengthen the security of several linked services.

Market Dynamics

Rising Reliability of M2M Systems and Growing Need for Innovative Consumer Electronics Drives the Global Market

M2M systems provide advantages such as reduced maintenance costs and downtime, real-time data monitoring, identification of service timing, remote operation, and low power usage. Several industries, including manufacturing, security, telemedicine, robotics, automotive, industrial, and utilities, have implemented M2M systems due to their advantages. It necessitates enhanced network connectivity, in which eSIM plays a crucial role by providing wireless communication across mobile networks in a connected system.

The demand for smart electronics such as printers, smart glasses, smartphones, tablets, laptops, and wearables is driven by customers' desire to own linked homes. Integrating eSIM into consumer electronic items enables excellent network connectivity, which is necessary for connected homes. eSIM offers simple subscription management throughout the product's lifecycle, product differentiation, remote access, monitoring, streamlined logistics, and high-quality network connectivity, boosting user experience. It has resulted in using eSIM across various applications, ultimately contributing to market expansion.

Increasing Use of IoT and Launching 5G technology Creates Tremendous Opportunities.

The Internet of Things creates new industries and gives network service providers several options. In doing so, IoT is completely changing the ecology of the mobile sector. Demand for intelligent and automated appliances has expanded beyond consumer-oriented devices such as tablets, mobile phones, and laptops. Several industry verticals use smartphones and wearables, including household appliances, monitoring systems in healthcare, agriculture, and utilities, autonomous drones, connected vehicles, and industrial machines.

eSIM technology is the future of 5G since it can be readily fitted into smaller devices like fitness bands, wearables, and smartwatches. The adoption of eSIM allows businesses utilizing IoT systems with cellular-enabled devices to modify their systems to embrace 5G and reap its benefits. With the increasing prevalence of smart devices across several corporate and consumer segments, it is anticipated that the need for mobile and wireless connectivity will also expand dramatically. This creates a new income potential for communication service providers when users purchase data-centric gadgets to broaden their data plans.

Regional Analysis

The North American eSIM market held the most outstanding market share and is expected to grow at a CAGR of 11.5% during the forecast period. Likewise, the European eSIM market is projected to grow at a CAGR of 10.1% during the forecast period. These regions are pioneers in adopting the most recent technologies. At the same time, they are home to some of the most notable market participants, like NXP Semiconductors N.V., STMicroelectronics, and Giesecke+Devrient Mobile Security GmbH, among others. These regions are also experiencing an increase in the prevalence of smart linked devices and connected automobiles. Due to these variables, it is anticipated that these two regions will maintain their dominance during the projected period.

Key Highlights

• The global eSIM market was valued at USD 7,337.2 million in 2021. It is expected to reach USD 17,585.9 million by 2030, growing at a CAGR of 10.2% during the forecast period (2022–2030).
• Based on solutions, the global eSIM market is classified into Hardware and Connectivity. The connectivity services segment accounted for the largest market share and is expected to grow at a CAGR of 9.2% during the forecast period.
• Based on application, the global eSIM market is divided into consumer electronics and M2M. The M2M segment is dominating and is expected to grow at a CAGR of 9.6 % during the forecast period.
• The global eSIM market is segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The North American eSIM market held the most outstanding market share and is expected to grow at a CAGR of 11.5% during the forecast period.

Competitive Players

Competitive Players

The global eSIM market’s major players are Kigen, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Infineon Technologies AG, KORE Wireless, NXP Semiconductors N.V., Sierra Wireless, STMicroelectronics, Thales Group, and Workz Group.

Recent Developments

Market News

• In March 2022, Deutsche Telekom and Tele2 complete sale of T-Mobile Netherlands.
• In May 2022, Deutsche Telekom’s stake in voting rights in Greek subsidiary OTE increased to 50 %.
• In May 2022, Convenient and secure private 5G networks: G+D is part of the 5G Smart Venue at HANNOVER MESSE 2022
• In May 2022, Infineon introduced the highly integrated and scalable wireless charging platform WLC with Qi-compliant and configurable controllers.

Segmentation

Global E-SIM Market: Segmentation

By Solution

• Hardware
• Connectivity services

By Application

• Consumer Electronics
• M2M
• Automotive
• Smart Meter
• Logistics

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa