eSIM Global Market Opportunities and Strategies to 2033

This report describes and explains the eSIM market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global eSIM market reached a value of nearly $4.78 billion in 2023, having grown at a compound annual growth rate (CAGR) of 29.8% since 2018. The market is expected to grow from $4.78 billion in 2023 to $14.83 billion in 2028 at a rate of 25.4%. The market is then expected to grow at a CAGR of 18.5% from 2028 and reach $34.62 billion in 2033.

Growth in the historic period resulted from the increasing demand for connected cars, increasing demand for consumer electronics and emerging markets growth. Factors that negatively affected growth in the historic period were lack of technological awareness.

Going forward, growth in number of IoT devices, increased adoption of eSIM-connected devices, increasing penetration of smartphones and increasing internet penetration will drive the growth. Factor that could hinder the growth of the eSIM market in the future include intensifying security threats.

The eSIM market is segmented by solution into hardware and connectivity services. The connectivity services market was the largest segment of the eSIM market segmented by solution, accounting for 88.6% or $4.24 billion of the total in 2023. Going forward, the connectivity services segment is expected to be the fastest growing segment in the eSIM market segmented by solution, at a CAGR of 25.7% during 2023-2028.

The eSIM market is segmented by application into connected car, smartphone and tablet, wearable device and others applications. The connected car market was the largest segment of the eSIM market segmented by application, accounting for 39.2% or $1.87 billion of the total in 2023. Going forward, the smartphone and tablet segment is expected to be the fastest growing segment in the eSIM market segmented by application, at a CAGR of 28.8% during 2023-2028.

The eSIM market is segmented by vertical into automotive, consumer electronics, energy and utilities, manufacturing, retail and other verticals. The automotive market was the largest segment of the eSIM market segmented by vertical, accounting for 39.6% or $1.89 billion of the total in 2023. Going forward, the consumer electronics segment is expected to be the fastest growing segment in the eSIM market segmented by vertical, at a CAGR of 27.9% during 2023-2028.

North America was the largest region in the eSIM market, accounting for 36.9% or $1.76 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the eSIM market will be Asia Pacific and North America where growth will be at CAGRs of 28.9% and 25.2% respectively. These will be followed by Western Europe and South America where the markets are expected to grow at CAGRs of 24.6% and 24.1% respectively.

The global eSIM market is highly concentrated, with a large number of players operating in the market. The top ten competitors in the market made up to 64.4% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. STMicroelectronics N.V. was the largest competitor with a 11.8% share of the market, followed by Idemia with 9.8%, ARM Limited with 9.3%, Thales Group with 8.1%, Infineon Technologies AG with 6.1%, Deutsche Telekom AG (T-Mobile) with 5.7%, Vodafone Group with 5.3%, Giesecke+Devrient Mobile Security GmbH with 3.8%, Tata Communications with 3% and Eastcompeace with 1.4%.

The top opportunities in the eSIM market segmented by solution will arise in the connectivity services segment, which will gain $9.04 billion of global annual sales by 2028. The top opportunities in the eSIM market segmented by application will arise in the smartphone and tablet segment, which will gain $4.1 billion of global annual sales by 2028. The top opportunities in the eSIM market segmented by vertical will arise in the automotive segment, which will gain $4.06 billion of global annual sales by 2028. the eSIM market size will gain the most in the USA at $3.11 billion.

Market-trend-based strategies for the eSIM market include innovative eSIM launches to offer global connectivity, adoption of AI in eSIM to enhance user experience, technological advances in eSIMs to offer improved connectivity for IoT devices, 5G eSIM cloud platforms to improve security and efficiency of eSIM services, new product launches for seamless user experience and strategic partnerships and collaborations among market players to drive innovation in the market.

Player-adopted strategies in the eSIM market include strengthening business operations through introducing new products, strengthening operational capabilities through strategic partnerships and enhancing its business operations through investments.

To take advantage of the opportunities, the analyst recommends the eSIM companies to embrace global connectivity revolution with innovative eSIM solutions, focus on AI integration for personalized eSIM experiences, focus on seamless IoT connectivity solutions, focus on continuous product innovation, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for market growth, provide competitively priced offerings, focus on strategic pricing, participate in trade shows and events, continue to use B2B promotions, focus on strategic promotion, focus on customer-centric approaches to enhance eSIM adoption and focus on connected car and smartphone/tablet segments.