eSIM Market By Product Type (Consumer Devices, IoT Devices, Embedded Modules), By Connectivity Type (Remote Provisioning, On-Device Provisioning), By End-User Industry (Telecommunications, Automotive, Healthcare, Consumer Electronics, Industrial Applications), and By Region; Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the ESIM Market was valued at USD 1.1 billion in 2023 and will surpass USD 4.8 billion by 2030; growing at a CAGR of 23.0% during 2024 - 2030.

The eSIM (embedded SIM) market has experienced significant growth due to the increasing adoption of digital SIM technology across various devices and industries. eSIM technology allows users to activate cellular plans remotely, eliminating the need for traditional SIM cards. With the rise in connected devices, the market has witnessed a surge in demand, particularly in sectors such as telecommunications, automotive, healthcare, and consumer electronics. eSIM provides increased flexibility and efficiency for both consumers and enterprises by offering remote provisioning capabilities, enabling easy device management and network transitions.

Consumer Devices Segment Is Largest Owing to Smartphone and Wearable Adoption

The consumer devices segment is the largest in the eSIM market, driven primarily by the increasing adoption of smartphones and wearables. With major smartphone manufacturers like Apple, Samsung, and Google integrating eSIM technology into their devices, the demand for eSIM-enabled consumer electronics has surged. Wearables, such as smartwatches, also contribute significantly to this segment’s growth, as eSIM provides enhanced connectivity options without the need for a physical SIM card. This segment's dominance can be attributed to the widespread consumer acceptance of eSIM-enabled smartphones, alongside the convenience and flexibility eSIM offers for users on the go.

The growing trend of eSIM adoption in consumer devices is expected to continue expanding as more regions embrace eSIM technology, making it easier for users to switch mobile operators or add multiple network profiles on a single device. Additionally, the demand for compact and efficient devices that provide better connectivity and space efficiency further boosts the growth of this subsegment.

Remote Provisioning Connectivity Type Is Fastest Growing Due to Seamless Activation

Remote provisioning is the fastest-growing connectivity type within the eSIM market. This method allows users to activate their mobile network profiles remotely, without needing to physically swap SIM cards or visit a carrier's store. As mobile operators and device manufacturers increasingly focus on improving the user experience, remote provisioning has become the preferred choice due to its convenience, security, and cost-effectiveness. It enables users to quickly activate a mobile service or switch operators, which is especially useful in the IoT and consumer electronics sectors where seamless device management is crucial.

The rise of remote provisioning is driven by its ability to simplify global roaming, streamline device deployments in industries like automotive and healthcare, and provide flexible connectivity for IoT devices. As eSIM technology evolves, more service providers are adopting remote provisioning to cater to a broader range of devices, further contributing to its rapid growth.

Telecommunications End-User Industry Is Largest Owing to Network Expansion

The telecommunications industry remains the largest end-user segment for eSIM technology, driven by the widespread deployment of eSIM-enabled devices and the growing demand for flexible and scalable connectivity solutions. Mobile operators are increasingly adopting eSIM technology to enhance customer experience and reduce operational costs associated with physical SIM cards. Telecommunications companies are also capitalizing on the benefits of eSIM to offer seamless switching between network operators and improved global roaming capabilities, which is essential for an increasingly mobile consumer base.

Telecom companies are focusing on expanding their eSIM offerings to include a broader array of devices, from smartphones to wearables and automotive solutions. This shift is expected to further solidify the telecom sector as the leading end-user of eSIM technology, supporting the growth of network infrastructures and enhancing mobile service offerings.

Asia Pacific Region Is Fastest Growing Due to Rapid Digitization

The Asia Pacific (APAC) region is expected to be the fastest-growing market for eSIM technology. Countries like China, India, Japan, and South Korea are witnessing rapid digitization, with increased demand for connected devices, smart homes, and IoT applications. In particular, the growing automotive industry in APAC is embracing eSIM technology to enable seamless connectivity for smart vehicles. Additionally, the rise of 5G networks across APAC countries further boosts the adoption of eSIM solutions, as it supports faster, more reliable, and flexible mobile network connectivity.

The expansion of telecom operators in APAC is also contributing to the growth of eSIM adoption, with many operators offering eSIM services for smartphones and IoT devices. The ongoing push for digital transformation in key industries, including automotive and healthcare, positions APAC as a key region for the expansion of eSIM technology.

Competitive Landscape and Leading Companies

The eSIM market is highly competitive, with several key players dominating the space. Leading companies such as Qualcomm, Apple, Gemalto (Thales Group), NXP Semiconductors, and Infineon Technologies are at the forefront, continuously innovating and expanding their eSIM portfolios to meet the growing demand. Qualcomm, for example, has been instrumental in developing eSIM technology for mobile devices, while Apple has integrated eSIM in its iPhone and other consumer devices, driving widespread adoption. Gemalto (now part of Thales Group) has strengthened its position with eSIM solutions for both consumer and IoT devices, while NXP and Infineon focus on providing secure eSIM modules for a wide range of applications.

As competition intensifies, companies are focusing on strategic partnerships, acquisitions, and product innovations to stay ahead in the market. The competitive landscape also reflects the growing emphasis on remote provisioning and the integration of eSIM solutions into 5G networks, which is expected to play a key role in shaping the future of mobile connectivity.

Recent Developments:

• In 2024, Apple introduced eSIM support for additional markets, making it easier for users to activate plans without needing a physical SIM, further solidifying its commitment to eSIM technology.
• Qualcomm unveiled new eSIM solutions designed for the automotive sector in Q1 2024, enabling seamless connectivity for autonomous vehicles and other smart transportation solutions.
• Thales Group acquired the eSIM business of a leading European company to bolster its portfolio in mobile connectivity and IoT solutions, focusing on remote provisioning services.
• Deutsche Telekom launched a new eSIM-based service in early 2024, targeting IoT device manufacturers with tailored connectivity solutions for large-scale operations.
• Verizon received regulatory approval in the U.S. in 2024 for a new service model that uses eSIM for easy activation of mobile plans across multiple devices, enhancing flexibility for consumers.

List of Leading Companies:

• Arm Holdings
• Apple Inc.
• Qualcomm Inc.
• Gemalto (Thales Group)
• Infineon Technologies AG
• NXP Semiconductors
• STMicroelectronics
• Verizon Communications
• AT&T Inc.
• Vodafone Group
• Deutsche Telekom AG
• Samsung Electronics
• Cisco Systems, Inc.
• Redmi (Xiaomi)
• Ublox

Report Scope: