eSIM: A Strategic Pillar for Device Makers
Within this comprehensive survey (673 participants from 5 continents), published by Mobile World Live in partnership with Thales, we explore the burgeoning influence of eSIM in the mobile and IoT industries.
In essence, we focus on its rapid adoption and strategic advantages to your business and reveal challenging eSIM insights.
Why should you, as industry professionals, pay attention?
Because the findings here are more than just numbers—they are the indicators of market trends, consumer demands, and the competitive landscape that will drive the future of your products.
Read on to uncover the insights that will inform your strategic decisions, align your product development with emerging market opportunities, and position your brand at the forefront of the eSIM revolution.
Let's dive in.
eSIM Adoption Statistics: The Current Landscape
The eSIM (embedded subscriber identity module) is transforming the mobile market, establishing itself as a pivotal technology in the telecommunications and technology sectors.
This transformative shift is evidenced by the increasing adoption of eSIM technology by device makers in smartphones and IoT devices.
As of mid-2023, nearly 400 mobile service providers globally have launched commercial eSIM smartphone services in 116 countries.
It marks the strongest semester for new launches in this area, pointing to emerging eSIM trends.
eSIM Advantages for consumers
The eSIM is pre-installed in devices and cannot be physically removed, allowing it to hold multiple mobile subscriptions simultaneously.
This offers significant benefits to consumers, such as ease in choosing wireless service providers any time and anywhere and avoiding roaming charges through local subscriptions without needing to swap physical SIMs.
6 Industry Insights: eSIM Integration and Prospects
This June 2023 survey involving smartphone OEMs/ODMs, IoT device makers, and laptop/tablet manufacturers revealed six key insights into the integration and prospects of eSIM technology.
- Smartphone OEMs/ODMs that currently sell eSIM devices anticipate a substantial increase in their eSIM device portfolio in the next two to three years.
- Nearly 64% expect between a quarter and three-quarters of their products to feature eSIMs within this timeframe.
- Even those not currently offering eSIM devices are gearing up to do so, with 75% planning to launch such devices within the next 24 months.
- The trend towards eSIM-only smartphones is also on the rise, with over half of the respondents indicating plans to develop such devices in the next one to two years.
- In the realm of IoT, 70% of OEMs not currently selling devices with eSIMs plan to do so within the next 24 months, signalling a significant shift towards eSIM technology in this sector.
- Laptop and tablet OEMs are also embracing eSIMs, with many expecting a large portion of their product portfolio to include eSIMs within three years.
Addressing Challenges: Testing and Market Visibility
Despite these positive developments, challenges remain.
Two-thirds of respondents across all categories identified the lack of support for eSIM device testing and insufficient testing as major pain points.
Addressing these issues is crucial for ensuring interoperability and enhancing the user experience.
Moreover, OEMs/ODMs express some lack of visibility in promotions and sales strategies, particularly for smartphones.
Conclusion: Embracing eSIM for a Competitive Edge
The eSIM stands to transform the mobile market.
Its benefits, such as the ability to seamlessly support multiple subscriptions and enhanced security, make it an attractive option for consumers and manufacturers.
However, overcoming testing challenges and enhancing promotion strategies pave the way to unlock the full potential of eSIM technology.
Enjoy the read and the journey into the connected future that eSIM technology heralds.