THE value of the global electronic SIM (e-SIM) market will increase from US$4.7 billion in 2023 to US$16.3 billion by 2027, says a study by Juniper Research.
The market will be driven by the adoption of e-SIM-enabled consumer devices as seen in Apple's recent release of the e-SIM-only iPhone 14, which triggers accelerated operator support.
E-SIMs are embedded in devices. They enable the devices and sensors to seamlessly switch between network operator profiles.
The Juniper study predicts that Apple will expand the deployment of e-SIM-only devices to Europe in 2023. The technology is key to minimising the time-consuming establishment of roaming agreements within the fragmented European telecommunications market.
The study says the number of smartphones leveraging e-SIM connectivity will increase from 986 million in 2023 to 3.5 billion by 2027, with manufacturers such as Google and Samsung developing an equivalent e-SIM-only Android device in order to compete with Apple and maintain their global market positions.
Research author Scarlett Woodford said: "Despite operator concerns regarding the disruptive impact of e-SIMs on existing business models, growing support from smartphone manufacturers will place additional pressure on operators. In response, service providers must support e-SIM connectivity to avoid subscriber attrition as technology awareness increases."
The report also says the number of e-SIM-connected smartphones in China will increase from 103 million in 2023 to 385 million by 2027, assuming country-specific standards are implemented.