Question 1

How rapidly is the market for eSIM technology expanding?

Accepted Answer

The eSIM market is projected to grow at a CAGR of 25% to 30% between 2018 and 2023, reaching an estimated global revenue of US$978 million. This adoption rate significantly outpaces the 21% CAGR forecast for the broader IoT device sector over the same period.

Question 2

Will easier switching lead to a collapse in customer retention for mobile operators?

Accepted Answer

While eSIMs simplify the churn process, the risk is mitigated by the fact that price, network performance, and data allowance remain the top three consumer purchase criteria. Operators can offset churn by leveraging eSIMs to offer new roaming products across 190+ countries and capturing higher-margin IoT connectivity.

Question 3

What are the specific hardware advantages for device manufacturers?

Accepted Answer

Adopting eSIM technology allows manufacturers to reclaim internal device space previously occupied by physical SIM trays, enabling the production of smaller or more feature-dense hardware. This transition is critical for supporting the 21% annual growth in the IoT and wearable device markets.

Question 4

How does eSIM growth compare to the general IoT market?

Accepted Answer

eSIM adoption is a primary driver of connectivity, with its 25% to 30% CAGR exceeding the 21% growth rate of IoT devices. This indicates that eSIMs are becoming the standard for new deployments, particularly in the wearables and global roaming segments.

Say goodbye to SIM cards – the rise of eSIMs

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