eSIM technologies have been steadily seeing increasing adoption, and is reportedly set to increase manifold over the next few years. A market research report by Counterpoint Research's Emerging Technology Opportunities (ETO) metric states that adoption of eSIM technologies will increase over 5x by 2025. Of the increasing segments, smartphones and enterprise IoT devices such as embedded security, infrastructure, smart cities and smart farming will contribute the highest margins via both hardware and integrated eSIMs.
Alongside these, the rise of connected cars and steady growth of wearable technologies are also slated to contribute significantly to the growth of eSIM adoption. According to the report, while there were 364 million eSIM equipped devices shipped globally through 2018, the year 2025 will see over 2 billion eSIM equipped devices being shipped. Other categories that would also contribute to the rise of eSIM adoption include aerial drones, routers and mesh network adapters, and the tablet, laptop and convertible space.
Satyajit Sinha, analyst at Counterpoint Research, stated, "The eSIM’s compact form factor offers significant space reduction for device manufacturers along with potentially higher security, re-programmability, and power efficiencies over the traditional SIM card solutions. For operators, eSIMs can significantly reduce the SIM distribution and activation costs while the potential to generate higher roaming revenues. Furthermore, eSIM offers great benefits for consumers and enterprise customers to seamlessly choose, activate, connect, and manage connectivity on their devices."
It remains to be seen how the adoption curve grows. Given that the e-SIM adoption is expected to grow over 500 percent within six years globally, we should see a lot more eSIM-embedded services become mainstream in the near future.
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