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Manila Bulletin devider Business devider eSIM market to reach $5 billion globally

eSIM market to reach $5 billion globally

Published Jan 11, 2023 08:41 am

The global eSIM (embedded SIMs) market will increase from $4.7 billion in 2023, to $16.3 billion by 2027, according to a new Juniper Research study.

The adoption of eSIM-enabled consumer devices, as seen in Apple’s recent release of the eSIM-only iPhone 14, will drive the market.

eSIMs are embedded within devices enabling gadgets and sensors to seamlessly switch between network operator profiles.

Already, India and China account for 25 percent of global smartphones using eSIMs

The Juniper study predicts Apple will expand deployment of eSIM-only devices to Europe in 2023 to minimize the time-consuming establishment of roaming agreements within the region's fragmented telecom market.

The total number of smartphones leveraging eSIM connectivity will increase from 986 million in 2023, to 3.5 billion by 2027, says Juniper Research.

Manufacturers, such as Google and Samsung, can develop n equivalent eSIM-only Android device to compete with Apple and maintain their global market positioning.

“Despite operator concerns regarding the disruptive impact of eSIMs on existing business models, growing support from smartphone manufacturers will place additional pressure on operators," research author Scarlett Woodford remarked.

"In response, service providers must support eSIM connectivity to avoid subscriber attrition as technology awareness increases,” she pointed out.

The report predicts the total number of eSIM-connected smartphones in China alone will increase from 103 million in 2023, to 385 million by 2027.

This is assuming country-specific standards are implemented, allowing eSIM use in smartphones.

Current regulations prevent Chinese-based device manufacturers from selling to their home market, limiting investment and innovation.

Hence, the report urged industry bodies to work closely with the government to develop specifications that allow eSIM support while addressing requirements for device monitoring and tracking.

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