According to Technavio's analyst, the eSIM market size is expected to be valued at 4.22 trillion units by 2026 with a CAGR of 21.08%.
This eSIM market forecast report extensively covers segmentations by:
- Application - Automotive, CP, and others
- Geography - APAC, North America, Europe, Middle East and Africa, and South America
This eSIM market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The eSIM market report offers information on several market vendors, including Arm Ltd., AT and T Inc., Cisco Systems Inc., Deutsche Telekom AG, Giesecke Devrient GmbH, IDEMIA, Infineon Technologies AG, KDDI Corp., KORE Wireless Group Inc., Nippon Telegraph and Telephone Corp., NXP Semiconductors NV, Redtea Mobile, Samsung Electronics Co. Ltd., Sierra Wireless Inc., STMicroelectronics NV, Telefonica SA, Telenor Group, Telit Communications Plc, Thales Group, and Truphone Ltd. among others.
What will the eSIM Market Size be During the Forecast Period?
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eSIM Market: Key Drivers, Trends, and Challenges
The large-scale benefits of using IoT devices is notably driving the eSIM market growth, although factors such as the increase in competition from soft sims may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the eSIM industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key eSIM Market Driver
The large-scale benefits of using IoT devices is one of the key drivers supporting the embedded subscriber identity module (eSIM) market growth. IoT devices primarily collect data through sensors and actuators, transmitting it to a centralized location on a real-time basis. This empowers end-users to make informed decisions. IoT integrates technologies such as data communication, hardware design, data storage, and mining and is the latest trend in the global technology arena. It connects essential electronic objects such as cars, TVs, laptops, and the entire industrial process control to the internet. Such large-scale benefits of using IoT devices will drive the embedded subscriber identity module (eSIM) market growth during the forecast period.
Key eSIM Market Trend
Growing awareness of wearable devices is one of the key embedded subscriber identity module market trends contributing to the market growth. Increasing disposable income and internet penetration are encouraging wearable device vendors to tap the growth potential of the market in the region. Consumers use smartwatches, smart bands, and others, and access social networking websites such as Facebook, LinkedIn, and Twitter. Furthermore, wearable device providers worldwide have increased their investment in R&D to foster the development of innovative products to improve market revenue and remain competitive in the market. Significantly, smart bands and smartwatches can help consumers share their activities with doctors to receive proper diagnoses. Therefore, with the growing adoption of such devices, the demand for eSIMs integrated into them will also increase during the forecast period.
Key eSIM Market Challenge
The increase in competition from soft sims is one of the challenges limiting the embedded subscriber identity module (eSIM) market growth. The soft SIM is an embedded software SIM, which is removable or reprogrammed by the device. Moreover, a soft SIM is a built-in feature that can replace traditional SIM cards and eSIMs. It allows users to connect to the network of their choice by selecting and entering the details in the software. For instance, Apple and Samsung have introduced soft SIM in iPad and Samsung Gear S2 tablets, respectively, which will be incorporated in their next-gen versions as well. The installation of soft SIMs in next-gen smartphones will affect telecom companies, as users will no longer be required to replace physical SIM cards or eSIMs in their devices when porting to a different service provider. Thus, such advantages provided by soft SIMS may hinder the embedded subscriber identity module (eSIM) market growth during the forecast period.
This eSIM market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Parent Market Analysis
Technavio categorizes the global eSIM market as a part of the global communications equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the eSIM market during the forecast period.
Who are the Major eSIM Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- Arm Ltd.
- AT and T Inc.
- Cisco Systems Inc.
- Deutsche Telekom AG
- Giesecke Devrient GmbH
- IDEMIA
- Infineon Technologies AG
- KDDI Corp.
- KORE Wireless Group Inc.
- Nippon Telegraph and Telephone Corp.
- NXP Semiconductors NV
- Redtea Mobile
- Samsung Electronics Co. Ltd.
- Sierra Wireless Inc.
- STMicroelectronics NV
- Telefonica SA
- Telenor Group
- Telit Communications Plc
- Thales Group
- Truphone Ltd.
This statistical study of the eSIM market encompasses successful business strategies deployed by the key vendors. The eSIM market is concentrated and the vendors are deploying growth strategies such as quality, price, service, brand image, distribution, and marketing to compete in the market.
Product Insights and News
- Arm.com - The company offers eSIM that are primarily embedded SIM and integrated SIM, for authenticating users on mobile networks, both existing and future 5G networks.
- Telekom.com - The company offers eSIM that gets permanently installed in smartphones, tablets and cars which makes it easier for customers to switch from one device to another.
- Gi-de.com - The company offers eSIM that comes with a solid and reliable management solution for embedded subscriber identity modules in place, MNOs are well-positioned to be key enablers of the exploding IoT market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The eSIM market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
eSIM Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the eSIM market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
Which are the Key Regions for eSIM Market?
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32% of the market’s growth will originate from Europe during the forecast period. Germany and France are the key markets for the eSIM market in Europe. Market growth in this region will be faster than the growth of the market in other regions.
Advances in automotive electronics and new marketing strategies will facilitate the eSIM market growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In early 2020, the outbreak of COVID-19 reduced the sales of eSIMs in the region, as manufacturing units and constructional activities were closed. However, with the number of COVID-19 cases slowly decreasing, nationwide lockdowns were removed, resulting in the reopening of stores and manufacturing units. Also, with the gradual increase in construction activities in Europe, the regional eSIM market is expected to see moderate growth during the forecast period.
What are the Revenue-generating Application Segments in the eSIM Market?
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The eSIM market share growth by the automotive segment will be significant during the forecast period. Consumer preferences are changing, and they are expecting high-end features at low costs. In view of this, the automotive industry is likely to grow with increased car production and demand from developing nations such as China, India, and Brazil during the forecast period. Therefore, with the increasing automobile production, the eSIM market is anticipated to grow during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the eSIM market size and actionable market insights on post COVID-19 impact on each segment.
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eSIM Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 21.08% |
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Market growth 2022-2026 |
4.22 tn units |
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Market structure |
Concentrated |
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YoY growth (%) |
31.91 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 32% |
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Key consumer countries |
US, China, India, Germany, and France |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Arm Ltd., AT and T Inc., Cisco Systems Inc., Deutsche Telekom AG, Giesecke Devrient GmbH, IDEMIA, Infineon Technologies AG, KDDI Corp., KORE Wireless Group Inc., Nippon Telegraph and Telephone Corp., NXP Semiconductors NV, Redtea Mobile, Samsung Electronics Co. Ltd., Sierra Wireless Inc., STMicroelectronics NV, Telefonica SA, Telenor Group, Telit Communications Plc, Thales Group, and Truphone Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this eSIM Market Report?
- CAGR of the market during the forecast period 2022-2026
- Detailed information on factors that will drive eSIM market growth during the next five years
- Precise estimation of the eSIM market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the eSIM industry across APAC, North America, Europe, Middle East and Africa, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of eSIM market vendors
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