The global eSIM market was valued at US$ 8.3 Billion in 2019 and is expected to surpass US$ 19.3 Billion by 2027, registering a CAGR of 15.9% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Growing demand for smart solutions such as smart cities, smart meters, and electric vehicles is expected to drive market growth during the forecast period.
This is attributed to connectivity and flexibility offered by IoT infrastructure and enhanced demand for smart cities and infrastructure growth in developing economies. For instance, in January 2018, Sierra Wireless, Canada based multinational company who design and manufacture wireless communication equipment launched AirPrime HL78 modules, industries multi-mode Low Power Wide Area (LPWA) cellular modules for asset tracking and connected industrial equipment for various applications in agriculture, healthcare, smart city and in smart wearable’s. The expansion of networks, reduced cost of hardware components such as actuators and sensors are some of the major factors that will lead to the introduction of services such as connected cars, automatic security systems, deployment of smart grids, and many others.
For instance, in November 2018, Workz Group, Dubai based company that provides SIM provisioning solutions announced a partnership with the African government to implement embedded eSIM enabled water meter in the country. The new smart project track leakages monitor energy in real-time by using eSIM technology. Hence, the growing demand for smart solutions for various industries such as automotive, agriculture, healthcare, energy& power provides lucrative growth opportunities for market players. However, a lack of technical expertise is expected to hinder the market growth during the forecast period.
eSIM Market – Impact of Coronavirus (Covid-19) Pandemic
Several countries across the globe have been affected by COVID-19 and governments have implemented nationwide lockdown to curb the spread of the disease. Growth of the eSIM market has also been impacted due to the pandemic. The demand for electronics devices which include consumer electronics and industrial electronics devices is expected to be impacted by the COVID-19 pandemic. China is one of the major suppliers of raw materials used for manufacture of electronic devices and finished products. According to data released by the Chinese customs department, China’s exports have declined rapidly by nearly 17% in the first two months of 2020 compared to 2019. The electronics industry had faced huge reduction in production, disruption of supply, and price fluctuations. For instance, according to Coherent Market Insight’s analysis, there was a 15.5% decline year-on-year in unit shipments from 335.8 million in 2019 to 269.7 million in 2020. Due to COVID-19, sales of electronics companies have fallen, and led to a reduction in demand for eSIM market.
Key Trends and Analysis of the Global eSIM Market:
- North America held a dominant position in the global eSIM market in 2019 and is expected to retain its dominance throughout the forecast period. This is attributed to the presence of large telecom companies in the region. Moreover, awareness regarding the integration of devices with eSIM providing lucrative growth opportunities in the market. Furher, in December 2018, AT&T, first U.S. carrier who added eSIM on their iPhones XS and XR which allow phones to be connected to two networks at once.
- Asia Pacific is expected to show significant growth over the forecast period, owing to to increasing adoption of IoT technology and increasing demand for embedded connectivity in vehicles is driving the market growth. For instance, according to GSMA, the number of IoT connections in the Asia-Pacific region accounted for 3.5 billion is expected to reach 12.1 billion in 2025. Moreover increasing adoption of consumer electronics such as smartphones, laptops, wearables are also expected to drive market growth during the forecast period.
- Among verticals, consumer electronics segment held a dominant position in the market in 2019 and is expected to retain its dominance during the forecast period. This is attributed to increase in the number of smartphones users across the globe. According to Coherent Market Insights, the penetration of smartphones increased worldwide from 2.8 billion in 2018 to 3.8 billion in 2020. Thus, in turn, increases the market growth over the forecast period.
- Major players operating in the global eSIM market include Infineon Technologies AG, STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Thales Group, KORE Wireless, Arm Limited, Truphone Limited, Workz Group, Sierra Wireless, NXP Semiconductors, AT&T.
The post Global ESIM Market To Reach US$ 19.3 Billion By 2027 appeared first on IoT Business News.
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February 19, 2021 at 10:20PM by IoT.Business.News, Khareem Sudlow
