eSIM Market Size, Share and Global Industry Analysis 2027

eSIM Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Application (Connected Cars, Laptops and Tablets, M2M, Smartphones, Wearables, Others); Vertical (Automotive, Energy and Utilities, Manufacturing, Retail, Consumer Electronics, Transportation and Logistics, Others)

Publication Month : Apr 2020

  • Report Code : TIPTE00002282
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 177
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The eSIM market was valued at USD 392.74 million in 2019 and is projected to reach USD 2,282.27 million by 2027; it is expected to grow at a CAGR of 27.36% from 2020 to 2027.

The embedded SIM (eSIM) market is predicted to witness a significant growth rate during the forecast period. The growth is majorly attributed to the substantial adoption of IoT technology across industries. The network connectivity has become an integral component of any manufacturing facility. The growth of the embedded SIM (eSIM) market also pertains to the presence of a large number of well-established players and emerging companies across the globe. Additionally, strong assistance from associations such as GSMA, European Telecommunications Standards Institute (ETSI), North American Telecommunications Association, and Telecommunications Industry Association is catalyzing the embedded SIM (eSIM) market players to enhance their technology, which is attracting an increased number of end users.

The embedded SIM (eSIM) market is also driven by the facility of seamless switch between network carriers. Traditionally, the device owner had to replace the physical SIM while switching to another network carrier, and there have been instances where SIM data is lost during network carrier switching. The usage of eSIM omits this threat of data loss, as the SIM is permanently integrated into the device. The opportunity to switch networks remotely is influencing individuals to opt eSIMs, and owing to the rising demand, the smartphone manufacturers are increasingly emphasizing on integrating the same on to the latest handsets. These factors are boosting the growth of the embedded SIM (eSIM) market.

North America led the embedded SIM (eSIM) market in 2019 and is expected to continue its dominance during the forecast period. The presence of a large number of telecom companies coupled with higher volumes of smart consumer electronics and automotive manufacturers in the region are boosting the growth of embedded SIM market. The penetration of smart technologies among the North American mass is considerably higher, owing to the awareness related to the benefits of eSIMamong the US and Canadian populations. The higher awareness generates higher demand for devices integrated with eSIM, which catalyzes the embedded SIM (eSIM) market in the region.

Impact of COVID-19 Pandemic on eSIM Market

The COVID-19 crisis is affecting the industries worldwide and the global economy is anticipated to take a worst hit in the year 2020 and likely in 2021 as well. The outbreak has created significant disruptions in primary industries such as consumer electronics, semiconductor, automotive, and IT infrastructure. All these industries are crucial for the growth of global eSIM market as they are the major demand generation industries for eSIMs. The factory shutdowns, travel bans, trade bans, and border lockdowns have impacted both manufacturing and sales of various consumer electronic products and components. The global electronics and semiconductor industry is one of the major industries that is facing serious disruptions due to supply chain issues and manufacturing shutdowns.

Lucrative Regions for eSIM Market

Lucrative Regions for eSIM Market
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Market Insights

Stupendous Demand for Smart Technologies

Smart technologies, such as smart wearables, smartphones, smart electronics, and smart or intelligent vehiclesare gaining immense attraction in the current scenario across the globe.

Consumer electronics is one of the key industries for the growth of the embedded SIM (eSIM) market, which is majorly driven by the smartphone sector. At present, a major population in the developed and developing countries, carry smartphones. As smartphone manufacturers continue to develop and commercialize advanced technology smartphones, several associated industries such as telecom industry also get benefitted. The growth in the smartphone industry has led several telecom companies to design and develop eSIM with added advantages over removable SIMs. The demand for smartphones continues to grow, and it is foreseen that the industry is expected to surge tremendously over the years. The upward trend in smartphone adoption is expected to boost the embedded SIM (eSIM) market as the smartphone manufacturers are emphasizing on offering their products with eSIM.

Application-Based Market Insights

Based on application, the global eSIM market is segmented into connected cars, laptops and tablets, M2M, smartphones, wearables, and others. The OEMs across the globe are focusing on the development and integration of eSIMin various applications. The growing demand of miniaturization and IoT technology across various industries is also boosting the eSIM market globally. The application of eSIM technology with cellular M2M modules unwraps more innovation and technological development globally. The M2M applications are driving the demand for eSIMs in various industries such as automotive, consumer electronics, retail, energy & utility, and logistics & transportation. The growing demand for advanced and innovative technology such as M2M applications and IoT is boosting the integration of eSIMin various industries.

eSIM Market, by Application – 2019 and 2027

eSIM Market, by Application – 2019 and 2027
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Vertical Type-Based Market Insights

The mounting technological advancements and growing trend of miniaturization of devices across various industry verticals areboosting the integration of eSIM. The telecom providers are focusing on the development and advancements in connectivity technologies between the devices. It optimizes the space in gadgets and the eSIM is enhancing the scope of new generation connected consumer devices. Based on vertical, the eSIM market is segmented into automotive, energy and utilities, manufacturing, retail, consumer electronics, transportation and logistics, and others.

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eSIM Market: Strategic Insights

Market Size Value inUS$ 392.74 Million in 2019
Market Size Value byUS$ 2,282.27 Million by 2027
Growth rateCAGR of 27.36% from 2020-2027
Forecast Period2020-2027
Base Year2020
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Product development is the commonly adopted strategies by companies to expand their product portfolio. NXP Semiconductor, IDEMIA, and Gemaltoare among the key players implementingstrategiesto enlarge the customer base and gain significant share in the eSIM market, which in turn permitsthem to maintain their brand name in the global market.

eSIM Market Segmentation:

By Application

  • Connected Cars
  • Laptops and Tablets
  • M2M
  • Smartphones
  • Wearable
  • Others

By Vertical

  • Consumer Electronics
  • Automotive
  • Energy and Utilities
  • Manufacturing
  • Retail
  • Transportation and Logistics
  • Others

Company Profiles

  • Deutsche Telekom AG. 
  • Gemalto N.V.
  • GieseckeDevrient GmbH
  • Infenion Technologies AG
  • NXP Semiconductor N.V.
  • Sierra Wireless Inc.
  • STMicroelectronics N.V.
  • TelefónicaS.A.
  • Vodafone Group Plc. 
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Application ; Vertical

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

Which verticalled the eSIM market?

Consumer electronics are among the key end users in the eSIM market.Growing digitalization and expansion of the semiconductor equipment in the consumer devices is driving the growth of the eSIM market. In the consumer electronics industry, technological advancements are continuously growing with the development of connected bikes, smart camera, and smart wearable devices, among others. For instance, Gemalto provides its customers with On-Demand Subscription Manager (OSM) solution, which depends on the cutting-edge GSMA specifications as well as manufactured on Global Platform standards.

Which factor is driving the eSIMmarket?

The machine-machine (M2M) communication is steadily growing across a variety of applications across the globe. The M2M technologies are transforming the organization's operational pattern and are creating newer revenue generation streams. Automotive, manufacturing, and consumer electronics industries are among the leading industries to integrate their manufacturing facilities with M2M communication technologies in order to facilitate communication. The acceptance of the connected ecosystem has revolutionized the industries such as manufacturing, utilities, automotive, and others. The advent of 5G and M2M communication are significantly driving the global eSIM market.

Which region led eSIMmarket?

The eSIMmarket was dominated by North America due to developed economies such as the US, Canada, and Mexico.The US is the early adopters of advanced technologies. The rise in penetration of smart phones and connected cars and autonomous vehicles in the region is paving the way of eSIM adoption. For instance, Panasonic Corporation of North America is reaching towards a finishing line on a Connected Vehicle Demo Center in their Peña Station hub. The Connected Vehicle Demo Center is a partnership between Panasonic and Colorado Dept. of Transportation to develop first production-grade. Any development taking place in respect to connected cars technologies might result into introduction of eSIM technology.

The List of companies - eSIM Market

  2. Gemalto N.V.
  3. GieseckeDevrient GmbH
  7. Sierra Wireless, Inc.
  8. STMicroelectronics N.V.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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