ESIM MARKET ANALYSIS

The term eSIM means embedded SIM card. In other words, eSIM is form of programmable SIM card that is embedded directly into a device. eSIM is a small chip that is used to authenticate user identity with his or her carrier. eSIM provides many advantages such as support multiple accounts, allow switching to various mobile network operators and also manages accounts by updating the software setting from user devices. eSIM finds its applications in smartphones, laptop, tablet, wearable’s, connected car, M2M, and many others. These factors are expected to drive the market growth during the forecast period.

The global eSIM market is expected to witness significant growth during the forecast period (2017–2030) due to increasing demand from consumer electronics such as smartphones, tablets, and others. According to Coherent Market Insights, in China, the penetration of smartphones increased from 676.5 million in 2017 to 782.3 million in 2020. Furthermore, increasing disposable income in developed and emerging economies has led to higher spending on smartphone devices. According to the National Bureau of Statistics (NBS), China’s rural and urban per capita disposable income reached US$ 5,658.45 from US$ 2,107.2 in 2018. Moreover, according to the U.S. Bureau of Economic Analysis (BEA), disposable personal income in the U.S. increased to US$ 16,706.40 billion in December 2019 from US$ 16,675.80 billion in November 2019. Moreover, smartphone manufactures are focusing on developing new advanced technology smartphones and several telecom industries are getting benefits due to these new developments. Thus, growth in the smartphone industry has led many telecom industries to design and develop eSIM with advanced features and replaced traditional SIM card adoptions. The growing trend in smartphone adoption is expected to boost the eSIM market as smartphone manufacturer are emphasizing on offering their products with eSIM.

Increasing security threats is expected to hamper the eSIM market growth during the forecast period. This is attributed to rising technological advancement, the proliferation of M2M services, and the penetration of IoT devices. Thus, it becomes complex to secure eSIM devices from various cyber threats. These factors are expected to hamper the market growth during the forecast period.

 The Global eSIM Market was valued at US$ 10843.5 Mn in 2021.

Recent Developments:

• Key companies are focused on partnership, in order to expand their product portfolio in the market. For instance, in September 2022, Workz Group, an eSIM & SIM solutions provider, has partnered with Monogoto, a connectivity-as-a-service cloud provider, to establish a cloud platform for consumer and Machine to machine (M2M) eSIM devices.
• Key companies are focused on collaboration, in order to expand their product portfolio in the market. For instance, in October 2021, NXP Semiconductors, a designer and manufacturer of semiconductor, has join forces with Qualcomm Technologies, Inc., a manufacturer of semiconductors and wireless telecommunication products. Through this collaboration both the organizations expanded their NXP Semiconductors eSIM solutions to Qualcomm Technologies wearable devices by integrating them together.

Restraint:

• Increasing security threats in eSIM devices is expected to restrain growth of the global eSIM Market during the forecast period

Impact of COVID-19:

Due to COVID-19 pandemic, several industries have witnessed significant shift in their business. There has also been significant impact on the growth of eSIM market as manufacturing operations were temporarily suspended across many countries to contain the coronavirus. Furthermore, shortage of 5G chipsets in the market disrupted the production so many manufacturing companies such as Samsung, Xiaomi, OPPO and LG Display had suspended their manufacturing operations in China, India, South Korea and in European countries. For instance, in May 2020, OPPO Company shut down its operations in Noida, India as six employees tested positive for COVID-19. Hence, demand for eSIM devices has decreased due to lockdown imposed in several countries.

North America held a dominant position in the global eSIM market in 2021

Statistics:

North America region dominated the global eSIM market in 2021, accounting for a 42.2% share in terms of value, followed by Europe, Asia Pacific, and Latin America, respectively

Figure 1: Global eSIM Market Share (%), By Region, 2021

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North America global eSIM market is expected to be one of the prominent region in the global market witness high growth during the forecast period. This is owing increasing demand for eSIM in emerging economies such as U.S. and Canada.

Figure 2: Global eSIM Market (US$ Mn) Analysis and Forecast, 2017 - 2030

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The global eSIM market was valued at US$ 10843.5 Mn in 2021 and is expected to reach US$ 42158.6 Mn by 2030, growing at a CAGR of 16.5% between 2022 and 2030.

Major players operating in the global eSIM market include Infineon Technologies AG, STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Thales Group, KORE Wireless, Arm Limited, Truphone Limited, Workz Group, Sierra Wireless, NXP Semiconductors, AT&T