eSIM Market Size, Share & Trends Analysis Report By Solution (Hardware, Connectivity Services), By Application (Consumer Electronics, M2M), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global eSIM market is expected to reach USD 7,337.2 million by 2021 at a CAGR of 8.5% from 2022 to 2030, according to a study conducted by Grand View Research, Inc. Market growth is driven by the rapid adoption of IoT-connected devices in consumer electronics and M2M applications. There is an upsurge in the number of times eSIM profiles were downloaded across consumer devices. The eSIM market is propelling due to the rise in the adoption of eSIM-connected devices. According to Mobilise in 2021, there are currently 1.2 billion eSIM-enabled devices, with the number expected to climb to 3.4 billion by 2025.

The introduction of eSIM in the automobile industry has provided tremendous flexibility in providing cellular connectivity to trucks and cars while unlocking new capabilities and features. It is expected that within the next several years, all cars will be cellular-enabled, resulting in a better driving experience facilitated by novel linked services. Recently, the automotive industry took a giant step toward enabling the next generation of connected automobiles by implementing the GSMA Embedded SIM specification to strengthen vehicle connectivity. This, in turn, is intended to improve security for various connected services.

The eSIM-enabled solutions offer automatic interoperability across numerous SIM operators and connection platforms and remote SIM profile provisioning. With multiple network service providers involved in the operating chain, maintaining the security of these systems has grown complicated. Mobile Network Operators' (MNOs') credentials are collected and kept by the eSIM in the device's inbuilt software, making them vulnerable to security breaches. Furthermore, the operation of eSIM across numerous physical platforms and MNOs exposes it to several virtual environment concerns. As a result, the operational flexibility provided by eSIM may be rendered ineffective if security is breached, impeding market expansion.

Industry 4.0 is a technological breakthrough that has introduced smart machinery with automatic communication and control. Industry 4.0 refers to a networked environment in which actionable data and information are transferred between Machine to Machine (M2M) and Machine to Other (M2O) devices via the Internet of Things (IoT). Wi-Fi, sensors, RFID (radio frequency administrations), and autonomous computing software are all used in M2M systems to analyze data and send it over a network for further processing. M2M systems frequently rely on public and cellular networks for internet access. These factors enabled the integration of electronic manufacturers with eSIM (embedded SIM cards) into M2M systems, thereby contributing to market expansion. By enabling M2M communication, eSIM technology has enabled advancements in the connected ecosystem.

The increasing penetration of smartphones across countries such as China, India, Japan, and the U.S. is further anticipated to fuel market growth. For instance, eSIM-enabled smartphones have gained traction across India with shipments expected to reach 3.5 million units in 2020, majorly led by Apple, Inc.’s iPhone. Smartphone manufacturers such as Google, Apple, Inc., Motorola Mobility LLC, and Samsung Electronics Co., Ltd. have started implementing eSIM technology into their smartphones in alliance with several network service providers. For instance, Apple, Inc. has partnered with six service providers, namely MTX Connect, Ubigi, GigSky, Soracom Mobile, Truphone, and Redtea Mobile, to offer eSIM service. The increasing adoption of eSIM by smartphone and consumer electronics manufacturers to provide an enhanced and secure user experience is expected to bolster market growth.

Solution Insights

In 2021, the connectivity segment dominated the market and is expected to rise during the forecast period. This rapid expansion can be due to the increasing use of eSIM for M2M connections, which is expected to generate money for network operators through subscription services. MNOs (Mobile Network Operators) provide connectivity services for securely and remotely managing end-user cellular subscriptions. The automotive industry recently backed the GSMA Embedded SIM Specification to strengthen vehicle connection, paving the way for a new generation of connected vehicles. It is projected to improve security for a variety of connectivity services, allowing the market to grow.

The hardware segment is projected to witness a substantial CAGR of 13.5% over the forecast period. The increase in consumer electronics manufacturers is anticipated to fuel the demand and contribute to segment growth. The growing trend among smartphone manufacturers to integrate eSIM into the device is predicted to fuel demand and contribute to segment growth. The hardware segment market is consolidated with a few eSIM chipset companies, such as Infineon Technologies AG, NXP Semiconductors, and STMicroelectronics, holding a significant share of the overall hardware revenue.

Application Insights

In 2021, the M2M segment accounted for 5,028.4 of the market and is expected to increase at a CAGR of 9.7% over the forecast period. The increasing use of eSIM technology in the automobile industry for M2M communication is propelling the M2M segment. Furthermore, connected cars are the primary demand drivers in the automotive industry. eSIM implementation in the automobile industry is projected to substantially simplify production and drive the expansion of the connected car market. This, in turn, is expected to encourage other industries to adopt M2M and IoT technologies.

Further, the consumer electronics segment is expected to expand at a CAGR of 12.0% over the forecast period. The consumer electronics application remains one of the significant forces shaping innovation, growth, and disruption across several technology sectors. The use of eSIM in smartphones lets device manufacturers use the space in the device as less space is required for the eSIM. Therefore, device manufacturers are adopting technology to design relatively slimmer smartphones. eSIM is projected to be a game-changer in consumer electronics applications. High reliability, improved safety, and enhanced connectivity are some of the features driving the adoption of eSIM in consumer electronic applications.

Regional Insights

The North America eSIM market accounted for the largest market share of 38.80% in 2021 with the highest CAGR during the forecast year. The growth is due to the high presence of network providers and the fastest technological advancements in the region. Similarly, the eSIM market in Europe is anticipated to be a second-dominated region with a market value of 2,070.3 in 2021.

The North America and Europe regions are the early adopters of the latest technologies. At the same time, the regions are headquarters to several prominent market players, such as Giesecke+Devrient Mobile Security GmbH, NXP Semiconductors N.V., STMicroelectronics, and others. These areas also witness the rising adoption of smart connected devices and cars. Due to all these factors, these two regions are expected to maintain their lead during the forecast period.

The Asia Pacific eSIM Market is expected to witness market growth of 8.5% CAGR during the forecast period (2022-2030). Prominent smartphone players such as Huawei and Samsung electronics have launched eSIM smartphones that are driving eSIM momentum in the smartphone market, positioning eSIM as the future mainstream SIM technology for connected devices. Furthermore, several OEMs across countries such as China and India are developing eSIM solutions and gathering joint development forces across the ecosystem to create tactical development paths. For instance, IDEMIA, an eSIM manufacturing company, has opened a new production capacity in India, which is expected to increase the eSIM production capacity globally. According to German digital solutions firm Giesecke+Devrient (G&D), 25-30% of smartphones are expected to have eSIM capability in three years from 2021.

Key Companies & Market Share Insights

The market is consolidated and characterized by a high degree of competition among major players such as Giesecke+Devrient Mobile Security GmbH, Gemalto NV, ARM Holdings, KORE Wireless Group Inc., and STMicroelectronics. These players are focusing on enhancing their market presence by adopting various strategies such as mergers, acquisitions, and joint ventures or collaborations. These strategies help organizations to expand their business geographically and enhance their solution offerings in different regions. For instance, in May 2018, Qualcomm Technologies, Inc. integrated Gemalto’s eSIM technology with the Qualcomm Snapdragon mobile PC platform. This integration will offer seamless LTE and 5G connections for consumer application devices.

The industry competition is anticipated to intensify further as a number of companies are focusing on the development of advanced, cost-effective solutions and technologies. For instance, eSIM makes it easier for consumers to change their mobile operators; thus, an increase in the number of consumers switching between network providers will result in intense competition between the network operators. Furthermore, in September 2021, Deutsche Telekom AG announced the launch of in-car 5G and personal eSIM networking options in collaboration with Bayerische Motoren Werke AG. Deutsche Telekom AG and Bayerische Motoren Werke AG used personal eSIM and MobilityConnect to link vehicle connectivity with the customer's mobile network on a 5G basis. Some prominent players in the global eSIM market are:

• Infineon Technologies AG.

• NXP Semiconductors N.V.

• STMicroelectronics

• Deutsche Telekom AG

• Giesecke+Devrient Mobile Security GmbH

• Gemalto NV

• ARM Holdings

 eSIM Market Report Scope

Global eSIM Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global eSIM market based on solution, application, and region:

• Solution Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Connectivity Services

• Application Solution Outlook (Revenue, USD Million, 2018 - 2030)

  • Consumer Electronics

  • M2M

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa