eSIM Market By Device (Connected Cars, Smartphones, and Wearable’s) By End Use Industry (Automotive, Consumer Electronics, and Energy & Utilities) - Global Analysis & Forecast 2019-2030

Report ID : 154  |  Published Date : May 2020  |  Pages : 170  |  Region : Global  |  Report Code : ICT-9

eSIM Market Overview and Introduction

Embedded SIM (eSIM) or Embedded Universal integrated circuit card (eUICC) is a non-removable SIM/hardware for next-generation connected consumer devices. It is mandatory for eSIMs to be compliant with GSMA's Remote SIM provisioning specifications. eSIMs finds applications across a broad spectrum of consumer devices such as smartphones, laptops, wearable, smart glasses, tablets, printers, connected home devices, and several other gadgets. There are various advantages offered by Embedded SIM (eSIM) such as high-quality connectivity, easy management of subscription over the entire lifecycle of the device and simplified logistics.

The growing adoption of eSIMs by device manufacturers, operators, and consumers can be attributed to several factors such as remote provisioning of user profiles, enhancement of end-users’ experience, differentiation of device offerings and the ability to remotely manage multiple customer subscription simultaneously, among others. Moreover, design flexibility due to the small footprint of e-SIM facilitates new technology adoption by device manufacturers. Reduction in size provides device manufacturers with additional flexibility, in terms of lowering production costs while not compromising on features. However, hacking & changing eSIM profiles pose challenges to eSIM market growth.

The global eSIM market is segmented by device, by end-use industry, and by region.

eSIM Market by Device

Based on device, the eSIM market is segmented into connected cars, smartphones, wearables, and others. In 2019, the connected cars segment is estimated to account for the largest share in the global eSIM market. The large share of the connected cars segment can be attributed to extensive initiatives by governments for the promotion of electric vehicles. In addition, the features offered by eSIMs, such as self-diagnosing cars, improving traffic conditions, advanced emergency systems, simplified logistics, secured connectivity, higher reliability, optimal 5G support, and improved user experience, are expected to propel the growth of this segment.

 eSIM Market by End Use Industry

Based on end-use industry, the market can be segmented into automotive, consumer electronics, energy & utilities, and others. In terms of market share, the consumer electronics segment is estimated to account for the largest market share in 2019 owing to the increasing adoption of eSIMs in consumer electronic devices such as smartphones, laptops, tablets, wearable devices, and others.

eSIM Market by Region

The global eSIM market can be segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). In terms of market share, Europe dominated the eSIM market followed by North America and Asia Pacific. Europe will continue to dominate the global eSIM market during the forecast period owing to factors such as increasing use of eSIM for a wide range of applications, rising government initiatives to promote its adoption and launch of a wide range of technologically-advanced products in this region. For instance, in April 2018, built-in connectivity has been a specific requirement in Europe following the Emergency Call (eCall) initiative intended to bring rapid assistance to motorists involved in collisions anywhere in the European Union. However, Asia Pacific is expected to witness the highest CAGR, with market growth centered in China, Korea, Japan, and India. On accounts of rising population and the growing adoption of smartphones in economies, such as China, Japan, and India, the region is likely to witness extensive adoption of embedded SIMs in the coming years.

eSIM Market Prominent Players

Some of the prominent players in the global eSIM market include Gemalto NV, Giesecke+Devrient GmbH., Infineon Technologies AG, STMicroelectronics, Workz Group, Truphone Limited, NXP Semiconductors., Sierra Wireless, Valid, and Plintron., among others