eSIM Market Forecasts to 2028 – Global Analysis By Solution (Connectivity Services, Hardware and Other Solutions), Application (Machine-to-Machine (M2M), Connected Cars and Other Applications), End User(Energy and utilities, Manufacturing and Other End Us

eSIM Market Forecasts to 2028 – Global Analysis By Solution (Connectivity Services, Hardware and Other Solutions), Application (Machine-to-Machine (M2M), Connected Cars and Other Applications), End User(Energy and utilities, Manufacturing and Other End Users) and Geography

According to Stratistics MRC, the Global eSIM Market is accounted for $8.19 billion in 2022 and is expected to reach $16.34 billion by 2028 growing at a CAGR of 12.2% during the forecast period. Embedded Universal Integrated Circuit Card (eUICC), also known as Embedded Subscriber Identity Module (eSIM), is a reprogrammable chip that is offered in both soldered and removable forms. It is a little chip that the user places on their device to verify their identification to their carrier. Because it supports many accounts, enables switching between different mobile network operators (MNOs), and manages accounts by simply updating the software settings from the user's mobile phone, eSIM is clever in terms of functionality.

According to data released by the Chinese customs department, China’s exports have declined rapidly by nearly 17% in the first two months of 2020 compared to 2019. The electronics industry had faced huge reduction in production, disruption of supply, and price fluctuations. According to GSMA, the number of IoT connections in the Asia-Pacific region accounted for 3.5 billion is expected to reach 12.1 billion in 2025.

Market Dynamics:

Driver:

Reliability Increases on Remote Access for M2M Systems

Remote provisioning enables the updating or deletion of subscriber identity module (SIM) profiles without requiring physical access to the SIM card and allows the download of an operator profile to an in-market SIM. Machine-to-machine (M2M) connections, which include simple and smooth mobile connections for all types of linked devices, depend heavily on the eSIM card. A requirement for M2M is the pervasive networking of devices across geographical regions. Embedded SIM runs in a controlled and secure environment and eliminates the inconvenience of switching service providers, which increases operational efficiency. The most recent embedded SIM cards provide verified profile compatibility and a main platform for the participants to collaborate on an equal playing field.

Restraint:

Intensifying security threats

With the development of technology, the adoption of IoT devices, and the growth of M2M services, it is crucial to guarantee secure and dependable communication across connected systems. As a result, maintaining the security of these systems has become a challenging undertaking. Because embedded SIM cards support automatic interoperability between connectivity platforms and various SIM operator profiles, they enable remote provisioning of SIM profiles. However, if security is broken, the operational flexibility provided by an integrated SIM would be for nothing. The embedded software of the device, which is vulnerable to numerous security attacks, is where the eSIM gathers and saves the credentials of mobile network operators (MNOs). Additionally, because it uses a variety of MNOs and physical platforms, it is subject to the dangers of the virtual world.

Opportunity:

Rising demand for smart solutions

Due to the flexibility and connection provided by the IoT infrastructure and the increased drive for smart cities and infrastructure growth in emerging countries, smart solutions, such as electric vehicles, smart cities, and smart metres, are being embraced more widely around the world. A few of the important drivers that will result in the introduction of services like the deployment of smart grids, automatic security systems, connected cars, among many others, include the evolution and expansion of networks, reduced cost of hardware components like sensors and actuators, and the emergence of new business models. This will increase investments in creating innovative smart solutions. As a result, there will likely be opportunities for growth due to the increasing need for smart solutions across a range of industries, including energy & power, automotive, healthcare, and agricultural.

Threat:

Lack of standardization

The ESIM value chain is extremely intricate and involves numerous parties. In order to effectively integrate embedded SIMs across a wide range of applications, stakeholders must coordinate and work together to establish standards for economies of scale, interoperability, and IoT technologies, such as machine-to-machine communications and ubiquitous sensor networks. International organisations, such as the European Telecommunications Standards Institute (ETSI) and the GSM Association (GSMA), are concentrating on developing standards on technical and operational aspects in order to address this issue of lack of standardisation and to facilitate the industry-wide adoption of eSIM.

Covid-19 Impact

Global industries are undergoing unanticipated changes as a result of the COVID 19 epidemic. The majority of industries are impacted from an economic and health perspective. The virus's quick spread disrupts market operations. During this time, the majority of industries are closed. Low productivity and supply chain interruptions are problems in many markets. Currently, there are some difficulties facing the eSIM market. Currently, the market's production rate is decreasing. Delivery delays brought on by shipping problems also have an impact on growth. In many areas, eSIM adoption is falling. The market is employing several strategies to raise demand, nevertheless. The overall market growth is sustained by digital eSIM activation. Users are receiving a consistent stream of digital experiences from the market's developed regions. They are setting up eSIM digital activation. Users are not required to physically visit a store to complete this process. After COVID 19, high efficiency and increased growth are anticipated.

The connectivity services segment is expected to be the largest during the forecast period

The connectivity services segment is estimated to have a lucrative growth, due to the increased use of eSIM for M2M connections, which is anticipated to generate revenue for network operators through subscription services, may be the cause of this rapid rise. Mobile Network Operators (MNOs) offer connectivity services for securely managing end-user cellular subscriptions from a distance. The GSMA Embedded SIM Specification, which will boost vehicle connectivity and pave the way for a new generation of connected vehicles, has just received support from the automotive industry. It is anticipated that it would enhance security for a number of connection services, enabling the market to expand.

The machine-to-machine (M2M) segment is expected to have the highest CAGR during the forecast period

The machine-to-machine (M2M) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the numerous benefits offered by the implementation of eSIM in M2M devices, including simpler device setup without the need to insert or replace a SIM card, improved reliability and security, sleek design, and no requirement of a connector, the M2M application is anticipated to hold the largest share of the market during the forecast period. Additionally, eSIM makes it possible to handle M2M devices, many of which are hermetically sealed and situated remotely, effectively.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the growing demand for embedded connectivity in automobiles and the increased acceptance of IoT technology. The market in the region is also anticipated to benefit from the growing acceptance of eSIMs in consumer electronics including smartphones, wearables, and laptops over the forecast period. Additionally, a number of OEMs are creating eSIM solutions and assembling collaborative development teams from across the ecosystem in nations like China and India in order to forge tactical development avenues.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the region's high concentration of network providers and the quickest pace of technological advancement. Several significant market participants, including Giesecke+Devrient Mobile Security GmbH, NXP Semiconductors N.V., STMicroelectronics, and others, have their headquarters in these locations. These regions also saw a rise in the use of connected smart gadgets and vehicles. These two regions are anticipated to keep their lead during the projected period as a result of all these variables.

Key players in the market

Some of the key players profiled in the eSIM Market include NXP Semiconductors N.V., Infineon Technologies AG., Deutsche Telekom AG, STMicroelectronics, Giesecke+Devrient Mobile Security GmbH, Gemalto NV, ARM Holdings, KORE Wireless Group Inc., Telephonic, S.A and NTT DOCOMO INC.

Key Developments:

In January 2018, Deutsche Telekom expanded its Internet of Things ecosystem at the IBM Watson IoT Center in Munich, Germany.

In January 2018, Sierra Wireless launched Air Prime HL78 modules, industry’s smallest, lowest power, multi-mode Low Power Wide Area (LPWA) cellular modules, meant for rapidly growing markets for asset tracking and connected industrial equipment, along with applications in the smart city, healthcare, agriculture, and wearables markets.

In December 2017, Gemalto entered into a partnership agreement with Microsoft to make Microsoft’s Surface Pro with LTE Advanced to become the first fully integrated embedded SIM PC in the Windows ecosystem.

In December 2017, STMicroelectronics acquired Atollic (Sweden), a leading expert in software development tools. This acquisition is likely to support further development of STM32 and to make it a fully integrated software solution.

In December 2017, Infineon Technologies AG and ESCRYPT GmbH (Germany), a leading system provider for embedded security solutions worldwide, closely worked together in the field of automobile cyber security to offer a solution that encrypts on-board communication and makes it more secure while considering future security requirements.

Solutions Covered:
• Connectivity Services
• Hardware
• Other Solutions

Applications Covered:
• Machine-to-Machine (M2M)
• Connected Cars
• Smartphones
• Laptops
• Tablets
• Smart Meter
• Wearables
• Other Applications

End Users Covered:
• Energy and utilities
• Manufacturing
• Consumer electronics
• Automotive
• Retail
• Transportation and Logistics
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements