eSIM market to Eyewitness Huge Marginal Growth by 2027
Posted by Mrudula Karmarkar on May 24th, 2022
The global eSIM market size is estimated to reach USD 24.96 billion by 2027, expanding at a CAGR of 15.8%, according to a study conducted by Grand View Research, Inc. Growing adoption of IoT devices among end-use applications is acting as a stimulus for the market growth. Moreover, eSIM offers remote provisioning for the critical IoT applications, which requires remote monitoring, where safety and maintenance are required. This factor is anticipated to drive the demand over the forecast period.
Furthermore, the size of the eSIMs is much smaller than that of physical SIM cards. Thus, less space is consumed by the chipset when integrated into the device. The device manufacturers are benefitted from the eSIMs technology, as manufacturers can save the SIM slot space where the physical SIM card and its tray occupy a specific area of the device. Thus, factors such as compact design specification and multiple carrier support of the eSIM are propelling the market growth.
Technological advancements in consumer application devices such as smartphones, tablets, and wearables are further bolstering the growth of the market for eSIM. Moreover, high penetration of eSIMs is expected to be in smartphones owing to the compact size of the chipset. As reduced SIM space in the smartphone allows device manufacturers to offer slimmer smartphones. For instance, in 2018, Apple, Inc. launched its iPhone with dual SIM functionality with a Nano-SIM and another e-SIM. Moreover, Apple, Inc. also has integrated eSIM in their tablets and watch series.
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eSIM is a hardware chipset that is permanently installed in the device, on which the Mobile Network Operators (MNOs) can store their data through radio signals. Also, the size of the chipset is smaller than a nano sim and can be reprogrammed by the software; thus, eSIM provides all the services like the physical SIM cards. Moreover, eSIMs offer several benefits over traditional SIM cards, such as supporting multiple mobile carriers, which makes the subscription management easier for the device end-user; thus, eliminating the need for handling several physical SIM cards by the device end-user. Another benefit of eSIMs is their physical security, as they are directly soldered to the circuit of the device, it is impossible to tamper the device to remove the SIM for misuse. The aforementioned benefits are anticipated to fuel the growth of the market.
eSIM Market Report Highlights
Additionally, a significant factor driving market growth is the increase in the number of M2M connections globally. As the communication in M2M connections is carried over the mobile networks, these SIMs play a significant role in wireless communication in the connected ecosystem. Moreover, remote provisioning and longer life span have resulted in increased adoption n the M2M applications such as smart meters, connected cars, and retail POS. Also, they require lesser space in the M2M devices, thus making it an ideal preference among device manufacturers. Hence, the features and functionalities offered by eSIM for M2M applications have resulted in the adoption of eSIMs among device manufacturers, thereby bolstering the market growth.
However, some of the factors restraining the eSIM market growth include lack of technology awareness among end-users and a smaller number of MNOs supporting eSIM technology globally. Similarly, the technical support provided by the MNOs in several countries is also different. Thus, adoption of eSIM technology among telecom carriers is crucial for market growth. For instance, Apple Inc. has launched different models of iPhones that have preinstalled eSIM in it. However, in developing countries such as India and Japan, not all carriers are supporting eSIM technology, thus eventually affecting market growth.
The market is consolidated and characterized by a high degree of competition among major players such as Giesecke+Devrient Mobile Security GmbH, Gemalto NV, ARM Holdings, KORE Wireless Group Inc., STMicroelectronics. These players are focusing on enhancing their market presence by adopting various strategies such as mergers, acquisitions, and joint ventures or collaborations. These strategies help organizations to expand their business geographically and enhance their solution offerings in different regions. For instance, Qualcomm Technologies, Inc. has integrated Gemalto’s eSIM technology with the Qualcomm Snapdragon mobile PC platform. This integration will offer seamless LTE and 5G connection for consumer application devices.
Some of the prominent players in the eSIM market include:
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About the AuthorMrudula Karmarkar
Joined: March 30th, 2020
Articles Posted: 235
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