Esim Market Size, Industry Analysis By Segmentations, Top Key Players, Trends, Future Development & Forecast By 2033
- PUBLISHED ON
- 2024-06-02
- NO OF PAGES
- 270
- CATEGORY
- Electronics & Communication
Esim Market was valued at USD 1.68 billion in 2022 and expected to grow at a CAGR of 8.1% during the forecast period.
Report Scope
Report Attributes | Description |
Market Forecast in 2022 | USD 1,680 million |
Market Forecast in 2033 | USD 5,650 million |
CAGR % 2023-2033 | 8.1% |
Base Year | 2022 |
Historic Data | 2020-2021 |
Forecast Period | 2023-2033 |
Report USP | Product, end-user industry, company share, company heat map, company Capacity Technology Product capacity, growth factors and more |
Key Companies | Telefónica, Semtech Corporation, Giesecke+Devrient GmbH, AT&T, Orange, Arm Limited, KORE Wireless, Workz, Oasis Smart-SIM, Vodafone Group, STMicroelectronics, Thales, Deutsche Telekom AG, NXP Semiconductors, Infineon Technologies AG, Telit, IDEMIA, TP Global Operations Limited, Sinch, Singtel, Others, |
The eSIM technology is designed to allow for remote provisioning of mobile network profiles, which means that users can add or switch mobile network operators without having to physically change the SIM card.
The eSIMs are becoming increasingly popular, with many mobile network operators now offering eSIM services to their customers. Apple was one of the first major device manufacturers to embrace eSIM technology, and now many other manufacturers have followed suit, including Samsung, Google, and Microsoft.
Covid-19 Impact:
The COVID-19 pandemic has had a mixed impact on eSIM technology. On the one hand, the pandemic has accelerated the adoption of eSIMs in some areas, particularly in the healthcare sector, where remote patient monitoring and telehealth services have become increasingly important.
The pandemic has also led to an increase in remote work and distance learning, which has driven demand for laptops and tablets with built-in eSIM technology. This has provided an opportunity for device manufacturers to incorporate eSIM technology into their devices and offer more flexibility to users who need to stay connected while on the move.
The pandemic has also led to a shift in consumer priorities, with many people more focused on financial stability and cost savings than on adopting new technologies. This has made it more challenging for mobile network operators to convince consumers to switch to eSIM-based services, which often require new devices or additional fees.
Market Dynamics:
Drivers:
Increased demand for connected devices: With the proliferation of internet-connected devices such as smartphones, smartwatches, tablets, and laptops, the need for a more flexible and convenient way to manage mobile network connectivity has increased. eSIM technology provides a solution to this by allowing users to remotely switch between mobile network operators without having to physically change the SIM card.
Growing popularity of IoT: The Internet of Things (IoT) is driving the development of new connected devices for a wide range of industries, including healthcare, automotive, manufacturing, and logistics. eSIM technology is becoming increasingly important for these applications as it enables remote connectivity management and allows for more efficient and secure management of devices and networks.
Increased security: eSIM technology provides enhanced security compared to traditional SIM cards as it allows for the use of stronger encryption and authentication mechanisms. This is particularly important for industries such as finance, healthcare, and government, where data security is critical.
Cost savings: eSIM technology can help reduce costs for both consumers and mobile network operators. For consumers, eSIMs eliminate the need to purchase and physically swap SIM cards when switching between mobile network operators, while for mobile network operators, eSIMs can reduce the cost of SIM card production, distribution, and management.
Convenience: eSIMs offer greater convenience to users by eliminating the need to physically swap SIM cards when switching between mobile network operators. This is particularly useful for frequent travelers who may want to switch to a local mobile network operator when abroad.
Restraints:
Compatibility issues: One of the main challenges of eSIM technology is compatibility. Many older devices may not be compatible with eSIM technology, which means that users may have to purchase new devices to take advantage of this technology. This can be a significant barrier to adoption, particularly for users who are satisfied with their current devices.
Lack of standardization: The lack of standardization in eSIM technology has been a significant barrier to adoption. Different mobile network operators and device manufacturers may use different eSIM standards, which can lead to interoperability issues and make it difficult for users to switch between mobile network operators.
Limited availability: While eSIM technology is gaining in popularity, it is still not widely available in all regions or for all devices. This can limit the choices available to consumers and make it difficult for mobile network operators to expand their eSIM services.
Cost: While eSIM technology can help reduce costs for both consumers and mobile network operators in the long run, there may be upfront costs associated with upgrading to eSIM-enabled devices or implementing eSIM technology in mobile network operator systems. These costs may be a barrier to adoption, particularly for smaller mobile network operators or consumers with limited budgets.
Security concerns: While eSIM technology is designed to be more secure than traditional SIM cards, there are still concerns about the security of eSIM technology, particularly in terms of the potential for hacking or fraud. These concerns may make some users hesitant to adopt eSIM technology.
Regional Analysis:
North America: North America is one of the largest and most mature eSIM markets, with high smartphone penetration rates and strong demand for IoT devices. Major players in the region include mobile network operators such as AT&T and Verizon, and device manufacturers such as Apple and Google.
Europe: Europe is also a significant eSIM market, with a strong regulatory framework supporting the adoption of eSIM technology. The European Union has mandated the use of eSIM technology in all new cars sold in the region from 2018 onwards. Major players in the region include mobile network operators such as Vodafone and Orange, and device manufacturers such as Samsung and Huawei.
Asia-Pacific: The Asia-Pacific region is a rapidly growing eSIM market, driven by strong demand for IoT devices and growing smartphone penetration rates. China is the largest eSIM market in the region, with major players including mobile network operators such as China Mobile and device manufacturers such as Xiaomi.
Latin America: Latin America is a relatively small but growing eSIM market, with strong growth expected in the coming years. Brazil is the largest eSIM market in the region, with major players including mobile network operators such as Claro and Vivo, and device manufacturers such as Motorola and LG.
Middle East and Africa: The Middle East and Africa are relatively small eSIM markets, with low smartphone penetration rates and limited infrastructure for IoT devices. However, there is growing interest in eSIM technology in the region, particularly in areas such as smart cities and healthcare.
Competitive Landscape:
The global Esim market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence.
• Telefónica
• Semtech Corporation
• Giesecke+Devrient GmbH
• AT&T
• Orange
• Arm Limited
• KORE Wireless
• Workz
• Oasis Smart-SIM
• Vodafone Group
• STMicroelectronics
• Thales
• Deutsche Telekom AG
• NXP Semiconductors
• Infineon Technologies AG
• Telit
• IDEMIA
• TP Global Operations Limited
• Sinch
• Singtel
• Others
Segments
By Component
• Hardware
• Services
By Connectivity
• Voice
• SMS
• Data
By Data Plan
• Less Than 2GB
• 2GB-5GB
• 5GB-10GB
• 10GB-25GB
• More Than 25GB
By Architecture
• M2M E-SIM Architecture
• Consumer Electronics E-SIM Architecture
By Pricing Models
• Pay As You Go Sims
• Pay Monthly Sims
By Network Type
• Public
• Private
By Compatible Device
• Mobile Phones
• Tablets
• Laptops
• Wearables
• Smart Meters
• IoT
By End-User
• Consumer Electronics
• Automotive
• Manufacturing
• Retail
• Energy and Utilities
• Transportation & Logistics
• Residential
• Sports & Entertainment
• Agriculture
• others
By Geography
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Russia
• Asia-Pacific
o Japan
o China
o India
o Australia
o South Korea
o ASEAN
• Latin America
o Brazil
o Argentina
o Colombia
• MEA
o South Africa
o Saudi Arabia
o UAE
o Egypt
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Case Study- Automotive Sector
One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
Solution
The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research
The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.
Market Estimates and Forecast
In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.
Case Study- ICT Sector
Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.
Business Solution
An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.
Conclusion
The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.
Frequently Asked Questions
What is the market size and growth projections?
The global Esim market was valued at USD 1.68 billion in 2022 and expected to grow at a CAGR of 8.1% during the forecast period
What are the drivers shaping various markets?
Growing popularity of IoT: The Internet of Things (IoT) is driving the development of new connected devices for a wide range of industries, including healthcare, automotive, manufacturing, and logistics. eSIM technology is becoming increasingly important for these applications as it enables remote connectivity management and allows for more efficient and secure management of devices and networks.
Who are the key competitors of market Players?
Some of the major players operating within the market are Telefónica, Semtech Corporation, Giesecke+Devrient GmbH, AT&T, Orange, Arm Limited, KORE Wireless, Workz, Oasis Smart-SIM, Vodafone Group, STMicroelectronics, Thales, Deutsche Telekom AG, NXP Semiconductors, Infineon Technologies AG, Telit, IDEMIA, TP Global Operations Limited, Sinch, Singtel, Others
What are the top performing segments, and countries / regions of each of the markets?
Europe: Europe is also a significant eSIM market, with a strong regulatory framework supporting the adoption of eSIM technology. The European Union has mandated the use of eSIM technology in all new cars sold in the region from 2018 onwards. Major players in the region include mobile network operators such as Vodafone and Orange, and device manufacturers such as Samsung and Huawei.
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