Global eSIM Market is segmented By Application (Connected Cars, Smart Homes, Smart Meters, Mobile Devices & Wearables, Laptops, Drones, Others), By End-User (Automotive, Electrical & Electronics, Energy & Utilities, Industrial, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
Report on Global eSIM analyses the market size, shares, recent trends, competitive intelligence, and future market outlook. Demand from IoT & AI technology industries in North America is rising. Competitive rivalry intensifies with NXP Semiconductors N.V, Deutsche Telekom AG, Gemalto NV and others operating in the market.
The embedded SIM (eSIM) refers to a SIM capable of hosting multiple connectivity profiles (as defined by GSMA). It supports secure over-the-air remote SIM provisioning, as well as remote updates to the keys and applications. Moreover, eSIMs can be either soldered to a device or removable and sometimes used interchangeably with the term embedded Universal Integrated Circuit Card (eUICC). However, there is a difference as the eUICC is the platform that can run multiple security applications.
Furthermore, worldwide recognition is growing for the unique ability of the eSIM to deliver flexible control and dynamic security over a connected object’s lifetime. Moreover, the eSIM shipment volumes showed significant global eSIM growth in 2020, with eSIM shipments collectively reported TCA members increasing 82% year-on-year to reach 308 million units.
Market Summary
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Application, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
New digital services continue to facilitate our personal and professional lives. The total established base of Internet of Things (IoT) connected devices globally is expected to amount to 30.8 billion units by 2025, from a sharp jump of 13.7 billion units expected in 2021. For instance, IoT connections are used in various applications, including connected cars, connected industrial equipment and smart home devices. In comparison, non-IoT connections include laptops, smartphones and computers, with connections of these types of devices set to amount to just over 9.5 billion units by 2025, approximately three times less than IoT device connections. As a result, the global eSIM market is expected to grow considerably during the forecast period due to the increasing demand for IoT applications.
Moreover, the development of faster and more reliable networks, especially with the extensive rollout of 5G, accelerates IoT deployment. Due to this development, many vehicles are becoming increasingly connected, which is forecast to continue both in the commercial and consumer-connected car markets that will directly impact the eSIM market for securing crucial information, including IP address, privacy, users, businesses and brands. It is expected that there are over one billion motor vehicles in use globally. In 2019, global sales of connected cars with embedded telematics were estimated to have hit 28.4 million units. The rising number of automobiles on the world streets requires more smart forms of urban transport than the standard ones, and today’s smart cities are offering the smart infrastructure needed for the implementation of connected car programs.
Furthermore, the new generation of mobile communications was released in 2019, and as of June 2020, 125 countries globally have begun to invest in the technology. Moreover, 5G networks are the latest 3GPP standard, boasting speeds between 10 and 100 times faster than 4G. 5G is expected to transform mobile communications and enable the digitalization of various aspects of everyday life. Perhaps most significant for future innovation is the ability of 5G technology to transfer vast amounts of data in real-time. In addition, 5G could serve as the basis for a "Fourth Industrial Revolution" and provide the future's smart cities' connectivity. This technology will also bring ease and efficiency to the lives of countless individuals around the world, which is expected to increase the market growth for eSIM globally during the forecast period.
Market Segmentation Analysis
By application, the market is segmented into connected cars, smart homes, smart meters, mobile devices & wearables, laptops, drones and others. By end-user, the market is segmented into electrical & electronics, automotive, energy & utilities, industrial and others.
eSIM implements flexible trusted connectivity to meet multiple logistical needs across different industry verticals. Multiple connectivity profiles, post-issuance personalization and remote management capabilities simplify supply chains and ease deployment challenges. Moreover, eSIM technology also addresses security challenges over a connected object’s lifetime. It is based on the widely distributed secure application delivery platform (SIM/USIM/UICC), and its usage is governed by interoperable solutions defined across various organizations such as ETSI, GSMA, GlobalPlatform, ISO and Java Card Forum. In addition, it is standard criteria certified and has advanced cryptographic features and security, including a securely designed central processing unit (CPU) and dedicated secure memory to store operating system programs, certificate data and keys. This guards devices against various hacking scenarios, such as physical attacks on a single device, remote and cloning attacks from the internet to numerous devices. This functionality is complemented by the capability to perform remote upgrades to apps, sensitive data and subscriptions according to GSMA and global platform specifications to quickly respond to emerging attacks and threats once a device is active in the field.
Market Geographical Share
North American region is expected to hold a significant market share due to the first region that supports eSIM and services provided by the major companies in the region. Moreover, North America held a revenue share of over 33.5% in 2019 and is expected to continue dominating during the forecast period due to network providers' presence, rapid technological advancements and the early adoption of advanced IoT & artificial intelligence (AI) technologies. Europe is expected to grow at a significant CAGR during the forecast period. For instance, in March 2018, the European government implemented an eCall regulation, in which all new passenger cars and EVs will be equipped with eCall technology. This initiative is expected to drive market growth.
APAC is expected to witness the highest CAGR during the forecast period due to the growing adoption of IoT technology, and the rising demand for embedded connectivity in vehicles from the consumers is expected to boost the market growth. Moreover, according to GSMA, in 2018, the number of IoT connections in the region accounted for USD 3.4 billion and is expected to reach USD 10.5 billion by 2025. Moreover, the increasing adoption of consumer electronics solutions such as smartphones, wearables, laptops, among others, is further expected to create growth opportunities during the forecast period.
Market Companies and Competitive Landscape
The eSIM market is fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream application. Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Gemalto NV, ARM Holdings, KORE Wireless Group Inc., NTT Docomo Inc., Sierra Wireless are the major player in the sim market. The major players adopt several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the eSIM market globally.
Infineon Technologies AG
OPTIGA™ Connect IoT is a ready-to-connect eSIM solution for cellular IoT devices. This turnkey solution enables easy, secured and cost-optimized management and deployment of cellular-enabled IoT devices at scale. It arrives with a pre-installed GSMA-compliant operating system and pre-integrated connectivity capabilities supported by the partner Tata Communications. OPTIGA™ Connect IoT provides global cellular network coverage, including 2G, 3G, 4G, CATM and other LTE services spanning 640+ networks across 200 countries. Moreover, end-to-end connectivity management extending from design through manufacture to deployment reduces complexity, offers complete visibility into IoT devices and simplifies control. It addresses today’s key pain points: interoperability, connectivity management, technical support, coverage, and cost. In addition, OPTIGA™ Connect IoT is based on Infineon’s best-in-class standard criteria EAL5+ certified eSIM hardware designed to better the security standards typically required by industry today. This adds a level to these solutions and protects them against physical attacks, which is essential for long-term devices in the field.
The company offers various significant benefits such as:
- Pre-integrated set of best-of-breed technologies
- Turnkey solution
- Ready to connect
- Easy management and deployment of cellular IoT at scale
- Flexible connectivity service for cellular IoT devices
- Cost-effective, secured connectivity and pervasive (worldwide)
- Simplified path to market
- Reduced complexity through interoperability and connectivity management
- Open for integration of additional applets
- Low power consumption
The company offers various significant applications such as:
- CAV Commercial Agricultural Vehicles
- Cloud devices
- Industry automation
- Light Electric Vehicles
- Smart Energy
- Smart Home
- Smart city infrastructure
- Wearables
