Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
eSIM - statistics & facts
eSIM, short for embedded SIM, is a technology prompting a major shift in the way cellular plans are activated, managed, and secured. An eSIM functions as a digital SIM card embedded within a device, offering greater ease of use, security, and sustainability when compared to a traditional physical SIM card. While eSIMs are expected to become commonplace in smartphones, their use extends to all manner of connected devices using a cellular network such as connected cars, drones, smartwatches, and other IoT (Internet of Things) devices.
Along with advancements in 5G, eSIM adoption is set to underpin a major shift in mobile technology over the coming decade, enabling network operators and users to enjoy flexibility and security amid the proliferation of connected devices worldwide.
Remote SIM provisioning streamlines cellular activation
The Global System for Mobile Communications (GSMA) first published the eSIM standard in 2016, announcing that it would enable what is termed remote SIM provisioning. Remote SIM provisioning removes the need for end-users to receive and insert a physical SIM card when activating a device. Instead, a user can simply download a SIM profile via a QR code or link provided by their chosen carrier. The user can then switch networks by simply downloading another profile from a different carrier. Operators point to a host of benefits associated with eSIM technology in enterprise IoT deployment, not least the ability to remotely update a large volume of devices with ease, while travelling consumers can enjoy significant cost savings using temporary eSIM packages offered by local carriers.The U.S. leads the way in eSIM adoption
2023 proved a pivotal year in eSIM availability. The number of available eSIM consumer devices reached 231, up 45 percent from the previous year, with around 60 percent of these devices being smartphones. Meanwhile, the number of network operators offering eSIM services reached almost 400 across the globe. The United States is considered a leading market for eSIM adoption, boasting a large installed base of connected devices, and with the country’s leading smartphone vendor, Apple, launching its smartphones as eSIM-only devices to U.S. customers.Digital security firms develop eSIM management platforms
The expanding eSIM ecosystem has created a competitive market for eSIM management solutions. Munich-based Giesecke and Devrient, long involved in physical SIM card services, has cemented its position as a major player, with its eSIM and iSIM business contributing to almost 1.2 billion euros in net sales in the firm’s mobile security segment. Giesecke and Devrient competes closely in this space with Paris-based Thales which has seen eSIM solutions become a core service within its 3.3 billion euro digital identity and security segment, having purchased the Dutch SIM card manufacturer Gemalto in 2019.Along with advancements in 5G, eSIM adoption is set to underpin a major shift in mobile technology over the coming decade, enabling network operators and users to enjoy flexibility and security amid the proliferation of connected devices worldwide.
