ESIM Market Report 2025

The esim market size has grown rapidly in recent years. It will grow from $10.76 billion in 2024 to $12.08 billion in 2025 at a compound annual growth rate (CAGR) of 12.3%. The growth in the historic period can be attributed to increasing adoption of iot devices, rising mobile connectivity needs, globalization and cross-border connectivity, security and authentication requirements, demand for compact and integrated solutions.

The esim market size is expected to see rapid growth in the next few years. It will grow to $20.53 billion in 2029 at a compound annual growth rate (CAGR) of 14.2%. The growth in the forecast period can be attributed to continued growth in IoT connectivity, expansion of 5G networks, emergence of new use cases, increasing mobile device proliferation, rising demand for remote sim provisioning. Major trends in the forecast period include IoT proliferation, embedded sims in smart home devices, cross-industry collaboration, integration with blockchain technology, security and authentication focus.

The growing penetration of smartphones is a significant factor contributing to the expansion of the eSIM market in the future. A smartphone is defined as a mobile phone that offers advanced functions. eSIMs are integrated into consumer devices like smartphones, enabling users to reprogram SIM content, including the International Mobile Subscriber Identifier (IMSI) and network carrier profiles, through software, thus eliminating the need for physical SIM card replacements. For example, a report from Demand Sage, a US-based revenue operations platform, indicated that in July 2023, the global number of smartphone users reached 6.8 billion, up from approximately 6.6 billion users in 2022. As a result, the increasing penetration of smartphones is set to drive growth in the eSIM market.

The increasing adoption of IoT-connected devices is projected to drive the growth of the eSIM market in the future. IoT-connected devices are tangible objects equipped with sensors, software, and network connectivity, enabling them to gather and exchange data over the internet, which facilitates remote monitoring and control. The surge in IoT-connected devices is fueled by technological advancements, greater internet accessibility, and a rising demand for automation and data-driven insights across various sectors. eSIMs play a crucial role for IoT-connected devices by enabling the remote provisioning and management of cellular connectivity, allowing devices to switch networks effortlessly without needing physical SIM card replacements. For example, a report published by Ericsson, a Swedish telecommunications company, in November 2022 stated that broadband IoT (4G/5G), which connects most cellular IoT devices, reached 1.3 billion connections in 2022. By the end of 2028, it is expected that nearly 60% of cellular IoT connections will be broadband IoT connections, predominantly using 4G. Currently, North East Asia leads in cellular IoT connections, with projections indicating it will exceed 2 billion connections by 2023. Thus, the rising adoption of IoT-connected devices is driving the growth of the eSIM market.

Leading companies in the eSIM market are dedicated to crafting innovative solutions, particularly digital 5G tourist eSIMs, catering to the burgeoning demands of international travelers. These eSIMs boast unique features such as simplified digital activation processes accessible through online platforms or applications. Singtel, a Singapore-based telecommunications company, unveiled the 5G Tourist eSIM in September 2023, targeting international travelers. This eSIM, designed to enhance convenience and value, allows tourists to manage connectivity needs before arriving in Singapore. Singtel's focus on major events such as the Grand Prix showcases the eSIM's hassle-free activation, eliminating the traditional SIM card purchase process and providing seamless 5G connectivity for enhanced travel experiences.

Prominent players in the eSIM market are prioritizing the development of distinctive features that promote planet-friendly and sustainable connectivity solutions. The term 'planet-friendly' refers to practices or products designed to minimize environmental impact. For example, in January 2023, Airtel, an India-based telecommunications company, introduced its eSIM, a digital SIM offering seamless functionality akin to a physical SIM. Airtel's eSIM not only facilitates quick online setup but also champions environmental friendliness, allowing users to operate two numbers on a single device. This service, now available alongside offerings from MTN and 9mobile, necessitates a compatible device and a SIM swap guided by Airtel service personnel.

In July 2023, Tata Communications, an India-based telecommunications company, made headlines by acquiring the remaining 41.9% equity stake in Oasis Smart SIM for an undisclosed amount. This strategic acquisition bolsters Tata Communications' technological capabilities by incorporating Oasis Smart SIM's expertise in eSIM technology. Oasis Smart SIM, based in France, specializes in providing eSIMs tailored for applications in IoT (Internet of Things) and M2M (Machine-to-Machine) operations.

Major companies operating in the eSIM market include Infineon Technologies AG, NXP Semiconductors N.V, Samsung Group, STMicroelectronics, CEC Huada Electronic Design Co Ltd, Eastcompeace Technology Co Ltd, Valid S.A., Microchip Technology Incorporated, Sony Group Corporation, EM Microelectronic, Watchdata Technologies Ptd Ltd, CardLogix Corporation, Gemalto (now Thales Digital Identity and Security), IDEMIA, Giesecke+Devrient, Sierra Wireless, Deutsche Telekom AG, Telit, Arm Holdings, Vodafone Group, Telefónica, Cubic Telecom, Truphone, Workz Group, KORE Wireless, Kigen.

North America was the largest region in the eSIM market in 2024. The regions covered in the esim market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the esim market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

eSIM, short for embedded Subscriber Identity Module, refers to an embedded universal integrated circuit card (eUICC) capable of supporting different network carrier profiles that are embedded within it. It allows users to utilize a cellular plan from a carrier without the need for a physical nano-SIM card.

The main solutions associated with eSIM include hardware and connectivity services. Hardware encompasses all the physical components of a computer system, including the devices it is connected to. eSIM finds applications in various devices and industries, including connected cars, laptops, Machine-to-Machine (M2M) communication, smartphones, tablets, wearables, and other Internet of Things (IoT) devices. These applications span across different verticals such as automotive, consumer electronics, energy and utilities, manufacturing, retail, transportation, and logistics.

The eSIM market research report is one of a series of new reports that provides eSIM market statistics, including eSIM industry global market size, regional shares, competitors with eSIM market share, detailed eSIM market segments, market trends, and opportunities, and any further data you may need to thrive in the eSIM industry. This eSIM market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The eSIM market consists of revenues earned by entities by providing data only and voice, SMS, and data services. The market value includes the value of related goods sold by the service provider or included within the service offering. The eSIM market includes sales of embedded universal integrated circuit card (eUICC) which is used for providing eSIM services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.