Global eSIM – By 2030, the eSIM market is expected to experience significant growth

Global eSIM – By 2030, the eSIM market is expected to experience significant growth

Market Size and Growth:

July 4, 2025 – Information generated by Google AI.

• Valuation: Different reports provide varying estimations, but all indicate substantial growth. One report projects the global eSIM market to reach USD 5.77 billion by 2030, with a CAGR of 31.40%. Another forecasts a market size of USD 16.10 billion by 2030 with a CAGR of 9.10%. A third projection estimates the market value to reach USD 31.82 billion by 2030, growing at a CAGR of 15.2%.

• Driving Factors:

• • Increasing adoption of IoT devices: eSIM technology enables seamless connectivity for IoT devices, eliminating the need for physical SIM cards and supporting applications in various industries, including automotive, healthcare, and manufacturing.

• • Growing demand for connected devices: This includes smartphones, tablets, wearables, and smart vehicles, all of which benefit from eSIM’s flexibility and remote provisioning capabilities.

• • Rapid 5G network expansion: 5G networks require flexible and scalable connectivity solutions like eSIMs to support various use cases, including high-speed mobile broadband and mission-critical applications.

• • The rise of eSIM-only smartphones: Major smartphone manufacturers are integrating eSIMs, increasing consumer awareness and adoption.

• • Telco operational expenditure (OPEX) savings: eSIMs offer remote provisioning, reducing the costs associated with traditional SIM card logistics.

• • Government IoT security regulations: These regulations favor the use of soldered SIMs for enhanced security.

• • Satellite-cellular convergence: This technology eliminates coverage gaps and facilitates global IoT roaming.

• • M2M/IoT modules: These modules are expected to drive growth at a 28.2% CAGR.

       * Key Trends:

• Increased adoption in smartphones: 75% of all smartphones are estimated to be eSIM-connected by 2030.
• Emergence of IoT specification eSIMs: The SGP.32 (IoT specification) for eSIMs will launch commercially in 2025, enabling eSIMs for all IoT devices.
• Growth in the automotive industry: eSIMs are being widely adopted for connected car services, software updates, diagnostics, and safety features.
• Focus on remote SIM provisioning (RSP) for M2M: eSIMs enable efficient remote management of connected devices.
• Dominance of North America and Asia-Pacific regions: North America holds the largest share of the eSIM market, while Asia-Pacific is experiencing the fastest growth.
• Advancements in 5G-enabled eSIMs: This segment is expected to see a 30.1% CAGR through 2030.

Challenges:

• Interoperability issues: Different telecom providers and devices may have compatibility challenges with eSIMs.
• Security risks associated with remote SIM provisioning: Robust security measures are needed to prevent fraud and cyberattacks.
• Complexity of eSIM implementation: Some device manufacturers may find it challenging to integrate eSIM technology.
• Regulatory challenges: Different countries may have varying regulations regarding eSIM technology.
• Lack of widespread consumer awareness: Educating consumers about the benefits and features of eSIMs is essential for wider adoption.
• Resistance from traditional SIM card industry stakeholders: The shift towards eSIMs disrupts traditional business models and may face opposition.

Overall, the forecast for the eSIM market in 2030 indicates a significant shift towards embedded and remote-provisioned SIM technology, with strong growth expected across various device types and industries. While challenges remain, the advantages of eSIMs in terms of flexibility, convenience, and security are driving market expansion.

The eSIM market is projected to experience substantial growth by 2030, driven by the increasing adoption of Internet of Things (IoT) devices, the expansion of 5G networks, and advancements in consumer electronics. This growth is further fueled by the benefits of eSIM technology, such as seamless connectivity, remote SIM provisioning, and reduced costs for both users and mobile network operators.

Here’s a more detailed look at the key factors:

• Rising IoT and Smart Device Growth:

The proliferation of IoT devices across various industries, including manufacturing, energy, and utilities, is a major driver for eSIM adoption.

• Remote SIM Provisioning:

eSIM technology enables remote activation and management of SIM profiles, allowing users to switch between network operators without needing a physical SIM card.

• Advancements in Automotive Connectivity:

eSIMs are being integrated into connected cars for telematics, emergency calls, and infotainment systems, further boosting market growth.

• 5G and Edge Computing Expansion:

The rollout of 5G networks and the rise of edge computing are creating a demand for enhanced connectivity and real-time data processing, which eSIMs can facilitate.

• Consumer Electronics Adoption:

The integration of eSIMs into smartphones, tablets, smartwatches, and other consumer devices is becoming more widespread, driving demand and expanding the market.

• Government and Regulatory Support:

Government initiatives and supportive regulations are accelerating the adoption of eSIMs across various sectors.

• Convenience and Flexibility:

eSIMs offer greater flexibility and convenience for users, allowing them to easily switch between different mobile network operators and plans, especially while traveling.

• Cost Savings:

eSIMs can lead to cost savings for users and operators due to reduced manufacturing and logistical costs associated with physical SIM cards.

Information generated by Google AI. Link here