Smart connectivity is a prerequisite for successful information exchange in a wide range of applications. ESIM offers various benefits, such as remote provisioning and reliability in terms of reducing malfunction due to corrosion, shock, or other environmental factors in the smooth adoption of cellular connectivity across applications. Owing to these advantages, eSIM is expected to widen its reach across applications (in addition to the core M2M application).
The eSIM market is expected to be valued at USD 978.3 Million by 2023, growing at a CAGR of 31.0% between 2018 and 2023. The high adoption of IoT technology, favorable government regulations boosting M2M communication, and emphasis on remote SIM provisioning for M2M are primarily driving the market growth.
The M2M application is likely to primarily contribute to the eSIM market in 2018 due to the advantages of eSIM adoption in M2M applications that include no requirement of changing SIM card, improved reliability and security, sleek design, and no requirement of a connector. Furthermore, eSIM aids in the effective management and seamless connectivity of M2M devices, which are remotely located and often hermetically sealed.
The eSIM market based on vertical has been segmented into automotive, energy & utilities, manufacturing, retail, consumer electronics, and transportation & logistics. An embedded SIM is physically integrated into a device; hence, it cannot be replaced with another SIM and removed from the device. ESIM aids in simplifying connected product delivery through intelligent provisioning and enhanced flexibility and long-term connectivity. Owing to the rising penetration of IoT, connectivity services are increasing at a rapid pace. Owing to this, the demand for eSIMs is likely to gain momentum across verticals in the next few years.
The consumer electronics vertical is anticipated to register the highest growth in the eSIM market during the forecast period. ESIM is anticipated to be a game changer in the Consumer Electronics vertical. It aids in intelligent switching of operator profiles without any hassle to the end user, with no geographical border constraints. The rising sale of smartphones, growing demand for mobility, ongoing technological innovations in wearables, growing popularity of autonomous vehicles, and increasing penetration of IoT across end-user industries are anticipated to drive the adoption of eSIMs across consumer electronics applications in the near future.
The eSIM market in Asia Pacific is expected to grow rapidly during the forecast period owing to the burgeoning digital commerce market, rising investments across verticals to boost operational efficiency, and steadily increasing infrastructural developments. The most incremental growth is likely to arise from 2 dominant countries-China and India. Moreover, countries such as Japan and South Korea are seen as the early adopters of eSIM, followed by developed economies. Owing to highly developed economies and the fastest-growing telecom vertical, these countries are endeavored to adopt eSIM solutions to boost productivity.
eSIM Market by Application (Connected Cars, Laptops, M2M, Smartphones, Tablets, Wearables), Vertical (Automotive, Consumer Electronics, Energy & Utilities, Manufacturing, Retail, Transportation & Logistics), and Geography - Global Forecast to 2023
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