eSIM Market Is Estimated To Witness High Growth Owing To Increasing Adoption of Connected Devices

Purvaja Jadhao

posted on 11 months ago — updated on 1 second ago

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The global eSIM market is estimated to be valued at US$ 10,843.5 million in 2023 and is expected to exhibit a CAGR of 16.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

eSIM Market Is Estimated To Witness High Growth Owing To Increasing Adoption of Connected Devices

Market Overview:
The eSIM market refers to the embedded SIM technology that allows remote SIM provisioning of mobile devices, eliminating the need for physical SIM cards. With the increasing adoption of connected devices such as smartphones, wearables, and IoT devices, the demand for eSIM is witnessing significant growth. The eSIM technology offers various advantages such as easy device activation, network flexibility, and reduced dependency on physical SIM cards. It enables seamless switching between network providers and eliminates the hassle of SIM card installation and management. These factors are driving the demand for eSIM technology in various industries such as telecommunications, automotive, healthcare, and consumer electronics.

Market Key Trends:
One key trend in the eSIM market is the growing adoption of eSIM in the automotive industry. With the increasing integration of advanced technologies in vehicles, such as connected car services and telematics, the demand for eSIMs in the automotive sector is rising. eSIM technology enables the provision of various connected car services such as predictive maintenance, remote vehicle diagnostics, and over-the-air software updates. It also provides a secure and reliable connection for in-vehicle services such as infotainment, navigation, and emergency services. The automotive industry is leveraging eSIMs to enhance the overall driving experience and offer innovative services to consumers.

Overall, the eSIM Market Demand is witnessing high growth potential due to the increasing adoption of connected devices and the advantages offered by eSIM technology. The growing adoption of eSIM in the automotive industry is a key trend driving market growth.

PEST Analysis:

Political: The political factors influencing the eSIM market include government regulations and policies related to telecommunications and data security. Governments play a crucial role in shaping the regulatory environment for the eSIM market, ensuring fair competition and consumer protection.

Economic: The economic factors driving the eSIM market growth include the increasing adoption of IoT devices and the growing demand for connectivity solutions. The eSIM technology offers cost savings and operational efficiency for businesses, which contributes to its market growth.

Social: Social factors influencing the eSIM market relate to changing consumer preferences and lifestyles. The demand for connected devices and seamless connectivity is driven by the need for convenience, mobility, and accessibility across various industries.

Technological: Technological factors impacting the eSIM market include advancements in wireless communication technologies and the continuous development of IoT ecosystems. The eSIM technology enables remote provisioning and seamless switching between network operators, boosting its adoption in industries such as automotive, healthcare, and retail.

Key Takeaways:

The global eSIM market is expected to witness high growth, exhibiting a CAGR of 16.5% over the forecast period of 2023-2030. The market size for 2021 was estimated to be US$ 10,843.5 million. The increasing adoption of IoT devices, the demand for connected solutions, and the benefits offered by eSIM technology are the key drivers behind this growth.

Regionally, North America is the fastest-growing and dominating region in the eSIM market. The presence of major key players, technological advancements, and the early adoption of IoT devices and services contribute to the region's market dominance. Furthermore, favorable government initiatives, the presence of prominent industries, and the high disposable income of consumers drive market growth in North America.

Key players operating in the 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, and AT&T. These companies play a significant role in driving market growth through their innovative product offerings, partnerships, and strategic collaborations.