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The subscriber identification module card market size is estimated to grow by USD 1.98 billion at a CAGR of 8.66% between 2022 and 2027. The market's expansion hinges on several factors, notably the increasing migration to 5G networks, which promises higher data speeds and improved connectivity. This shift is driving the development of hybrid network types, combining 5G with existing technologies for optimal coverage and performance. Additionally, key players are enhancing the quality of service to meet the demands of a rapidly evolving digital landscape, ensuring seamless connectivity and efficient network management. As demand for high-speed, reliable connectivity grows, the market is witnessing a surge in investments to expand 5G infrastructure. This expansion, coupled with advancements in technology, is expected to drive the growth further, offering enhanced services and connectivity options to consumers and businesses alike.
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This market report extensively covers segmentation by type (hybrid SIM, micro SIM, mini SIM, and nano SIM), capacity (128kb, 64kb, 32kb, 256kb, and 512kb), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market share growth by the hybrid SIM segment will be significant during the forecast period. They have perforations for three suitable sizes from 2FF (form factor) to 4FF. Therefore, these can be converted into micro, mini, and nano type depending on the needs of the consumer. They were introduced to eliminate the need to manufacture separate FFs and provide users with the convenience of replacing their mobile device with another FF without replacing their existing one.
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The hybrid SIM segment showed a gradual increase in the market share of USD 1.64 billion in 2017. The deployment is based on network connectivity, such as 3G (generations), 4G, and 5G. The increase in sales of smartphones that support 3G, 4G, and 5G connectivity has led mobile operators to increase their procurement of hybrid type. The increased use of hybrid SIMs can be attributed to the fact that these allow consumers to easily switch between different types of phones. Therefore, the convenience of switching to different smartphones is expected to drive growth, thereby driving the global market during the forecast period.
The 128KB memory SIM segment has seen a significant increase in sales volume compared to the ones with lower memory capacity, such as the 64KB type. Consumers are also focusing on purchasing these with sufficient storage capacity to store a large number of contacts and messages. Strict government regulations to provide increased storage capacity and improved security features are contributing to this growth. Thus, the market share of the 128KB segment will drive growth during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the growth during the forecast period. APAC is an attractive market due to smartphone penetration and population growth. Additionally, this region is also home to the headquarters of several major companies, primarily based in Japan, China, and India.
Moreover, improvements in network infrastructure and quick adoption of next-generation communication protocols in the region are expected to increase demand. Additionally, ongoing network modernization projects in the communications and networking sector are also driving the development of new-generation technologies such as embedded (eSIM) and soft types. Hence, such factors are expected to drive growth in this region during the forecast period.
The market is driven by the increasing use of mobile telephony devices and computers. SIM cards, with their integrated circuits, store the International Mobile Subscriber Identity (IMSI) number and other key information. Technological advancements have led to electronic upgrades, enabling features like triple SIM functionality. Market dynamics such as SIM card registrations and the rise of E-SIM technology are shaping the telecommunications industry. The market scope is broad, with segmentation based on storage capacity (32 KB to 512 KB) and device compatibility (GSM, CDMA, LTE, and satellite phones). Factors influencing the market include product pricing, national GDP, and consumer behavior, influenced by economic, political, and social landscapes.
The enhanced quality of service by players is the key factor driving the market. The adoption of 5G network connectivity has increased significantly due to its benefits, such as high bandwidth speeds and low latency. As 5G adoption continues, manufacturers are evolving to provide secure services to consumers. One provider has adopted the 3rd Generation Partnership Project (3GPP) standard, which provides a higher level of trust based on protecting subscriber privacy in both the consumer and IoT segments. This evolution is influenced by factors such as Satellite Phones, the Subscriber Identity Module (SIM) Card Market, Industry Trends, Product pricing strategies, National GDP, Consumer behavior patterns, and the Economic, political, and social landscapes.
For example, IDEMIA provides mobile operators with these and a full range of 5G IoT-enabled technologies such as over-the-air (OTA) quality of service monitoring, subscriber privacy protection, and IoT security for all their 5G networks. They provide services where security, privacy, and quality of service are important. Therefore, enhanced data protection is expected to drive growth during the forecast period.
Growth in adoption of smartphones is the primary trend shaping the market. Mobile penetration rates are particularly high in developed countries, presenting significant growth opportunities for the market. Technology developments in smartphones, increasing disposable income, and increasing public awareness about the benefits of mobile usage are among the factors expected to positively impact the global market.
Additionally, low prices associated with smartphones are expected to further fuel the growth of smartphones, which in turn is anticipated to drive the market during the forecast period.
An increase in old inventories leading to reduced production is a challenge that affects the market. As smartphones become more popular, the demand for triple type instead of 2FF or 3FF is increasing. Therefore, the production is increasing, and the old stock of 2FF, 3FF, and 4FF remains as unsold. The manufacturing and operating costs of 2FF, 3FF, and 4FF pose challenges for the emerging market.
Furthermore, with the advent of products such as Soft-SIM, market players also face the challenge of monitoring and selling older inventory. This problem can only be avoided by processing the old versions of existing inventory (raw materials, work in process, finished goods) and immediately disposing of them. Therefore, increasing legacy inventory is expected to impede the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 11 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is evolving rapidly with the proliferation of mobile phones and electronic upgradations in integrated circuits. SIM cards are essential components in GSM Phones, CDMA Phones, and LTE Handsets, enabling cellular communication. The market analysis includes triple SIM FF technology and the emergence of 5G SIM card manufacturers. The market is segmented based on the end-use industry, and competition analysis evaluates corporate profiles using Porter's 5 Forces Framework. Key factors influencing the market include pricing, value chain, and market scenario, offering opportunities and challenges for investors in this market.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.66% |
Market growth 2023-2027 |
USD 1.98 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
7.79 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bartronics India Ltd., dz Card International Ltd. , Eastcompeace Technology Co. Ltd., Giesecke Devrient GmbH, Hengbao Co. Ltd., IDEMIA France SAS, STMicroelectronics International N.V., Thales Group, WATCHDATA TECHNOLOGIES Pte. Ltd., Workz Group, and WUHAN TIANYU INFORMATION INDUSTRY Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 the forecast period |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Capacity
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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