eSIM Market Report: Size, Share and Outlook by 2031

The eSIM market was valued at approximately US$ 392.7 million in 2019 and is anticipated to expand significantly, reaching around US$ 2,282.3 million by 2027. This growth represents a remarkable compound annual growth rate (CAGR) of 27.4% from 2020 to 2027.

As technology continues to evolve, the demand for advanced devices such as smartphones and smart wearables is on the rise, particularly among the tech-savvy millennial and middle-aged demographics worldwide. In response to this demand, numerous companies are actively engaged in the development of innovative technologies aimed at enhancing consumer lifestyles. Countries such as the United States, China, Japan, Germany, India, and the United Kingdom are at the forefront of technological advancement, hosting a substantial number of manufacturers in the consumer electronics and automotive sectors. Notably, smartphone manufacturers play a crucial role in generating significant revenue within the embedded SIM (eSIM) market.

The eSIM market can be segmented based on application into several categories, including connected cars, laptops, tablets, M2M (machine-to-machine), smartphones, wearables, and others. In 2019, the M2M segment led the eSIM market; however, the smartphone segment is projected to experience the fastest growth rate in the coming years. The increasing demand for eSIMs is evident among smartphone manufacturers, automotive companies, laptop producers, and players in the energy and utility sectors. Original Equipment Manufacturers (OEMs) globally are focusing on the development and integration of eSIM technology across various applications. Additionally, the rising trend of miniaturization and the Internet of Things (IoT) technology across multiple industries is further propelling the global demand for eSIMs.

From a geographical perspective, the eSIM market is divided into regions including North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. In 2019, North America held the largest share of the global eSIM market, followed closely by the Asia-Pacific and European regions. The increasing adoption of smartphones, connected cars, and autonomous vehicles in North America is significantly contributing to the growth of eSIM technology. The presence of numerous telecom companies, along with a high volume of smart consumer electronics and automotive manufacturers, is driving the expansion of the eSIM market in this region. Furthermore, the penetration of smart technologies among the North American population is notably high, leading to greater awareness of the advantages associated with eSIM technology, particularly in the United States and Canada.

Key players in the global eSIM market include Deutsche Telekom AG, Gemalto NV, Giesecke + Devrient Mobile Security GmbH, IDEMIA, Infineon Technologies AG, NXP Semiconductors N.V., Sierra Wireless, STMicroelectronics, Telef?nica S.A, and Vodafone PLC. These companies are instrumental in shaping the future of the eSIM market.

Impact of the COVID-19 Pandemic on the eSIM Market

The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has rapidly spread worldwide, severely impacting countries such as China, Italy, Iran, Spain, South Korea, France, Germany, and the United States in terms of confirmed cases and fatalities as of March 2020. The pandemic has disrupted economies and industries globally, leading to lockdowns, travel restrictions, and business closures. Consequently, the overall market downturn due to COVID-19 has adversely affected the growth of the eSIM market, resulting in factory shutdowns, supply chain disruptions, and a weakened global economy.

The overall size of the global eSIM market has been determined through a combination of primary and secondary research methodologies. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. Participants in this research typically include industry professionals such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in eSIM technology.