Thursday, 04 July 2019 09:56

eSIM-based device shipments set to grow to 2b by 2025

eSIM-based device shipments set to grow to 2b by 2025 Courtesy Apple

About two billion eSIM-based devices will ship globally by 2025, up from 364 million in 2018, the analyst company Counterpoint Research says, adding that most of these devices would have a hardware chip-based eSIM solution until 2025, after which there would be more integrated SIM-based solutions adopted.

Research analyst Satyajit Sinha said the growth of eSIMs would revolutionise how connectivity across devices would be activated and managed.

"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," he said.

"For operators, eSIMs can significantly reduce the SIM distribution and activation costs while the potential to generate higher roaming revenues exists.

"Furthermore, eSIMs offer great benefits for consumers and enterprise customers to seamlessly choose, activate, connect, and manage connectivity on their devices.”

esim counterpoint

Sinha said though most current eSIM deployments were proprietary software solutions, hardware-based eSIMS were gaining traction, thanks to Apple, automotive OEMs and wearables.

Leading suppliers of hardware-based eSIMs include Infineon, ST Micro, Gemalto, G+D, and Workz while proprietary soft SIM-based eSIM solutions were supplied by RedteaMobile, Truphone, Telna, ARM, roam2free, and others.

Counterpoint research director Neil Shah said automotive and enterprise IoT devices would continue to remain high on the eSIM adoption curve in future.

"Further, the eSIM activation rate in cellular enterprise IoT devices will also be much higher than consumer IoT devices," he said.

"Key drivers are fragmented deployments, module space savings, robust tamper-proof security, flexibility in choosing the best available and competitive cellular network seamlessly as well as saving significantly on physical provisioning, and maintenance costs.”

The company said adoption of eSIMS in smartphones should be the main driver of volume growth as big players like Apple and Google adopted the technology. eSIM adoption by mobile hotspots, routers, connected PCs, drones and smartwatches would exhibit a higher compound annual growth rate due to their smaller base.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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