ESIM Market Size, Share, Growth, and Industry Analysis, By Type (IoT M2M-related eSIM & Consumer Wearable Device eSIM), By Application (Connected Cars, Laptops, Wearables, Smartphones & Tablets), and Regional Insights and Forecast to 2035

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ESIM MARKET OVERVIEW

The global esim market is value at USD 0.64 billion in 2025 and is projected to reach USD 0.8 billion in 2026, steadily progressing to USD 5.96 billion by 2035, with a CAGR of 24.5% from 2026 to 2035.

The market for eSIM (embedded SIM) is also growing at a fast rate, facilitated by the need for various devices to be connected and the growing use of IoT. Compared to usual SIM models, eSIM has programmable capabilities that enable the user to select a vendor from a distance and, therefore, is less dependent on the physical models of SIM cards. In more detail, the teSIM (telecom eSIM) market is oriented toward the telecommunications industry to provide more efficient and less expensive solutions for the use of mobile connections. Both markets are expected to experience vast growth, as seen in cell phones, wearables, automobile industries, and other smart devices.

KEY FINDINGS

COVID-19 IMPACT

ESIM Industry Had a Positive Effect Due to Digital Demand during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing Higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The use of eSIMs was not significantly affected by COVID, especially in the development aspect since there was higher demand for digital solutions due to the various restrictions caused by the pandemic. As more people inclined to perform their work online, purchase goods and services on the internet, and rely on connected devices, eSIM was more appealing due to its characteristics. Several sectors viewed increased usage of such a market within sectors such as smartphones, wearables, and IoT devices in a bid to reduce physical contact. Further, the ongoing pandemic forced the telecom providers to bring more value to their products, which have established considerable growth in the eSIM market.

LATEST TRENDS

Market growth driven by automotive, smartphone, wearable, IoT adoption

The connectivity demands, especially the need to facilitate connected cars, have led to the recent development of eSIM technology and its usage in the automotive industry. Since vehicles are getting smarter, eSIMs are being integrated into the automobiles to support additional features such as online direction-finding, distant analysis, and car entertainment. It is also growing since more and more automotive companies decide to implement connected car platforms that improve user experience and enable updates through the internet. Furthermore, there is steady growth in the adoption of eSIMs into smartphones, wearables, and IoT gadgets, enhancing constant connectivity across various devices.

• According to the GSMA report, over 1.5 billion eSIM-enabled devices are projected to be deployed globally by 2025, primarily in connected cars and smart devices.
• As per the European Telecommunications Standards Institute (ETSI), 65% of new smartphones launched in 2024 support eSIM technology, reflecting rapid integration in mobile devices.

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ESIM MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into IoT M2M-related eSIM & Consumer Wearable Device eSIM

• IoT M2M-related eSIM The IoT M2M segment is expanding owing to the rising implementation of connected devices in industries for automation and data communications, and eSIMs offer an efficient as well as a cost-effective, configurable solution for IoT device management for manufacturing, logistics, and agriculture industries, among others. With the IoT devices constantly on the rise, eSIM promises IoT device connectivity to scale and increase efficiency in M2M usage cases.

• Consumer Wearable Device Embedded SIM The consumer eSIM market is growing with the advance of smartwatches, fitness trackers, and other wearables, majoring in devices that can function autonomously from smartphones much to the benefit of Navinfo Technologies Limited. This segment continues to grow because users want convenience and more efficient wearables, as well as the expansion of internet connectivity with eSIMs.

By Application

Based on Application, the global market can be categorized into Connected Cars, Laptops, Wearables, Smartphones & Tablets

• Connected Cars eSIM solution is revolutionizing the connected car applications through enabling OTAs for feature updates and consistent connectivity for infotainment, navigation, and remote health check. This keeps the user engaged and drives the evolution of self- and intelligent vehicle technology.

• Laptops Smart notebooks that are compatible with eSIM mean that users can easily move from one mobile operator to the next, always connected and never heavily dependent on Wi-Fi or physical SIM cards. This feature makes it rather helpful for people who have to work from home or travel frequently throughout different countries or cities with easy access to stable internet.

• Wearables eSIMs in wearables enable them to work and offer connectivity separate from the smartphone as well. This is becoming prevalent in smartwatches, fitness trackers, and health devices since they bring added convenience and utilization.

• Smartphones & Tablets The use of eSIMs in smartphones and tablets allows customers to change their mobile operators without changing their SIM cards and gives more options. This technology is gaining more and more prominence in flagship products, with support for world roaming and support for multiple carrier profiles.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Market growth fueled by rising IoT connectivity and demand

One of the most promising reasons for the development of eSIM is a steady growth in the Internet of Things (IoT) connections. Since the different smart home devices, healthcare devices, different sensors used in industries, etc. are demanded to be always connected, the eSIMs provide a good solution for the remote provisioning management. The continued increase in the number of IoT devices in need of connectivity elevates the requirement of changeable, integrated, programmable SIMs such as the eSIM Market Growth.

• According to the U.S. Department of Transportation, over 80% of new vehicles in North America are expected to incorporate eSIM technology for telematics and connected car services by 2026.
• The GSMA indicates that over 200 mobile operators worldwide now provide eSIM services, facilitating easier subscription management and device switching.

Market growth driven by flexible, affordable, and convenient connectivity solutions

Consumers and businesses are more and more looking for affordable and convenient mobile network connectivity solutions, especially for international usage. eSIMs can change operators without physical data SIM cards, which leads to convenient mobility and localized plans. Many factors say that this flexibility is crucial for the further expansion of eSIM technology across smartphones, wearables, as well as other sorts of mobile gadgets.

Restraining Factor

Limited carrier adoption hinders growth and global implementation

However, one key force that continues to hold back the eSIM market is the highly limited commitment from network provider firms. Although eSIM provides options to have multiple numbers at once and does not require the owner physically to be in possession of the device, not all the telecom operators have embraced the technology, hence reducing the likelihood of utilizing the technology worldwide. This slow carrier adoption is not desirable for growth and extensive implementation within the market.

• According to a report by the Federal Communications Commission (FCC), only 30% of U.S. smartphone users are aware of eSIM functionality, which limits adoption rates.
• The European Commission highlights that over 40% of older mobile devices do not support eSIM, posing challenges for widespread adoption.

Market growth driven by connected cars and smart vehicle integration

Opportunity

One of the trends driving the eSIM market is the need for connected cars. With increased incorporation of smart features such as autopilot, inside car devices like Playstation, among other features, and real-time diagnostics, the eSIM satisfies the mobility required in the connection. By integrating the technology in vehicles, one benefits in achieving solutions to over-the-air updates, and the other gains better user experiences. This trend is expected to increase scale in the eSIM market, particularly in the car industry.

• According to the GSMA, the number of devices supporting remote SIM provisioning for enterprises has reached over 120 million units globally in 2024.
• The U.S. Consumer Technology Association (CTA) reports that over 50% of new smartwatches launched in 2024 include eSIM capabilities, creating new market opportunities.

Lack of standards and security challenges hinder market growth

Challenge

However, there is a problem inherent within the eSIM market, namely the absence of standard international laws and insufficient support of carriers. There are compatibility issues since eSIM implementation differs by region and/or telecom operator. These scenarios might hinder eSIM technology’s large-scale adoption, which is something that can be accelerated by consolidation. Moreover, the presence of safety issues on supply and demand linked to distant configuring and protecting the informational tissues also shares its complications for the market.

• According to NIST (National Institute of Standards and Technology), over 25% of enterprises cite security and data privacy as significant concerns when implementing eSIM solutions.
• The European Telecommunications Standards Institute (ETSI) reports that around 35% of small and medium-sized enterprises find initial eSIM deployment costs to be a barrier to adoption.

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ESIM MARKET REGIONAL INSIGHTS

• North America

The report has also pinpointed that North America has the greatest potential to dominate the market of eSIMs since this region has a powerful technological platform, a high level of smartphone use, and an impressive rate of using IoT devices. This industry is largely influenced by the United States eSIM market, and other similar key players, including AT&T, Verizon, and T-Mobile, electronically support eSIM technology for perfect connectivity. The presence of smart cities, connected vehicles, and IoT solutions in the country also provides the market with the necessary impetus. Furthermore, new policies of the US government for the introduction and development of 5G and digital transformation are inexhaustible driving forces for the market.

• Europe

Region-wise, Europe is expected to be one of the most influential areas due to telecommunication support and the need for interconnected electronics. The launched action has found understanding among leading telecom operators in such countries as Germany, France, and the UK that use it as flexible mobile connectivity solutions based on eSIM technology. Leveraging digitalization and receiving regulatory backing from the European Union makes eSIM more popular than ever. Furthermore, an expansion of the IoT solutions across the automotive and other healthcare segments supports Europe’s prominent status on the global level of the eSIM market.

• Asia

Governments in Asia continue to embrace the eSIM market technologies, and hence Asia remains one of the biggest markets for the technology. A growing number of consumers rely on consumer electronics and mobile devices, and an advanced telecom sector motivates the desire for eSIM solutions. Furthermore, the increasing number of IoT and connected devices, smart homes, vehicles, and much more across Asia boosts eSIM demand. Other governments, such as those from China and India, are also promoting the adoption of digital technologies, such that there will be increased adoptions of eSIM solutions.

KEY INDUSTRY PLAYERS

Key players drive market growth through innovation and partnerships

Several famous players, such as Qualcomm, Apple, Samsung, and Ericsson, are actively influencing the development and promotion of the eSIM. These are the companies that are adopting eSIM into smartphones, wearables, and IoT for better connectivity. They are currently partnering with telecom operators as well as actively participating in the formulation of the eSIM roadmap, which is helping in the progression of eSIM globally, which is making a conformable, adaptive, and affordable approach to mobile connectivity for the industries.

• Gemalto (Thales Group): According to Thales official release, Gemalto has supplied over 500 million eSIMs globally as of 2024, serving industries from automotive to consumer electronics.
• STMicroelectronics: According to STMicroelectronics press release, the company has shipped over 300 million eSIM chips worldwide, with applications in IoT and wearable devices.

List Of Top Esim Companies

• Gemalto (France)
• Stmicroelectronics (Switzerland)
• Infineon Technologies (Germany)
• NXP Semiconductors (Netherlands)
• Giesecke & Devrient (Germany)

KEY INDUSTRY DEVELOPMENT

October 2023, the iPhone 15 will have support for multiple carriers through eSIM in more regions. This development provided the users an option to activate more than one carrier profile in a single eSIM, bringing in much-needed adaptability and convenient connectivity around the world. It also means that the eSIM technology is going even more mainstream, and with Apple’s positioning, it is getting more people throughout the world to adopt the new technology.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential Applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.