Global eSIM market value to hit $16.3bn in 2027, Juniper finds
January 10, 2023227 views0 comments
By Onome Amuge
The global eSIM market will increase from $4.7 billion in 2023 to $16.3 billion by 2027, driven by the adoption of eSIM-enabled consumer devices, according to a new Juniper Research study.
According to Juniper, eSIMs are programmable SIM cards that are embedded within devices, enabling devices and sensors to seamlessly switch between network operator profiles.
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The report titled; “eSIMs: Emerging Trends,Strategic Recommendations & Market Forecasts 2023-2027”, found that the 249 per cent increase in the market shows a rise in global acceptance, as seen in Apple’s recent release of the eSIM-only iPhone 14, triggering accelerated operator support.
The research predicts that Apple will expand deployment of eSIM-only devices to Europe during 2023, with eSIM technology key to minimising the time-consuming establishment of roaming agreements within the fragmented European telecommunications market.
It also showed that the total number of smartphones leveraging eSIM connectivity will increase from 986 million in 2023 to 3.5 billion globally by 2027, with manufacturers such as Google and Samsung developing an equivalent eSIM-only Android device in order to compete with Apple and maintain their global market positioning.
The report found that the total number of eSIM-connected smartphones in China will increase from 103 million in 2023, to 385 million by 2027, assuming country-specific standards are implemented; allowing eSIM use in smartphones.
However, Juniper noted that current regulations prevent Chinese-based device manufacturers from selling to their home market, limiting investment and innovation.
To this end, the report called on industry bodies to work closely with the Chinese government to develop specifications that allow eSIM support whilst addressing requirements for device monitoring and tracking.
Research author Scarlett Woodford, in his remark, noted that despite operator concerns regarding the disruptive impact of eSIMs on existing business models, growing support from smartphone manufacturers will place additional pressure on operators.
“In response, service providers must support eSIM connectivity to avoid subscriber attrition as technology awareness increases,” he added.