eSIM Market is Estimated to Witness High Growth Owing to Increasing...

eSIM Market is Estimated to Witness High Growth Owing to Increasing Adoption of IoT connected Devices

Сообщение 2024-01-11 07:36:02

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An eSIM (embedded SIM) is an integrated circuit that securely stores the international mobile subscriber identity (IMSI) number and its related key, network access credentials and profiles to make voice calls and use data services. Embedded SIMs provide the flexibility to add wireless connectivity to devices by remotely provisioning subscriber identification module (SIM) profiles for multiple networks without requiring physical SIM cards.

The global eSIM Market is estimated to be valued at US$ 14717.07 Mn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of the global eSIM market size is the increasing adoption of Internet of Things (IoT) connected devices. eSIM offers benefits like remote SIM provisioning without requiring physical SIM cards and enables activation and maintenance of cellular connectivity in devices remotely through cloud-based platforms. This provides better flexibility and portability for cellular connectivity in myriad IoT applications across sectors like automotive, consumer electronics, energy & utilities, transportation & logistics and healthcare. As the global IoT market continues to grow exponentially with increasing development of smart infrastructure and connectivity of more devices, the demand for eSIM is also expected to rise at a significant rate over the forecast period. Additionally, eSIM allows faster activation and better mobility management of connectivity for devices like electric vehicles, smart meters, fleet management systems and mobile medical carts compared to physical SIM cards.

SWOT Analysis

Strength: The eSIM market provides flexibility, convenience, and cost-saving benefits to users which is driving its adoption. ESIMs allow users to easily install and activate multiple profiles on a single device without needing to swap physical SIM cards. This enables easier switching between wireless carriers. They also eliminate the need for physical SIM slots on devices making product design more flexible.

Weakness: However, security and privacy continues to be a concern with eSIM technology as profiles can potentially be installed and activated remotely without user consent increasing risks of hacking and surveillance. There are also compatibility issues as not all networks and devices support eSIM profiles yet.

Opportunity: The growth of IoT devices and connectivity presents a major opportunity for eSIM chip suppliers and mobile operators. Billions of IoT devices are expected to come online in the coming years requiring embedded connectivity. ESIMs are particularly suited for IoT due to their flexible activation and remote management capabilities. Growth of 5G networks will also boost eSIM demand as 5G requires integrated SIM connectivity.

Threats: Declining average selling prices of devices pose pricing challenges. Mobile operators may also be reluctant to adopt eSIMs fearing loss of control and lock-in of subscribers. Strong incumbent position of physical SIM card suppliers can also impede faster adoption of eSIM technology. Geopolitical conflicts and trade disputes impact supply chains and availability of key components.

Key Takeaways

The global eSIM market is expected to witness high growth over the forecast period driven by the proliferation of IoT devices and adoption in smartphones and laptops. Regionally, North America currently dominates the eSIM market attributed to early technology adoption. However, Asia Pacific is anticipated to be the fastest growing market led by countries like China, Japan and South Korea where smartphone and IoT penetration is highest.

Key players operating in the eSIM market are Tesla, Zoox, Waymo, Cruise, Argo AI, Aurora, Motional, Pony.ai, Nuro, Embark, TuSimple, Plus, Inceptio Technology, WeRide, Pronto.ai, Vay, Phantom Auto, Ottopia, Cognata, and AutonomouStuff. They are focusing on investing in R&D to develop advanced eSIM chipsets and software with enhanced security, functionality and cost efficiencies to tap the growth opportunity. Partnerships with mobile operators are also crucial for technology adoption.