Wednesday 11 January 2023

eSIM market worth US$16.3 bln worldwide in 2027 - Juniper Research




KUALA LUMPUR, Jan 10 (Bernama) -- A new study by Juniper Research revealed that the value of global eSIM market is expected to reach US$16.3 billion in 2027, an increase of249 per cent from US$4.7 billion in 2023, since Apple innovation disrupts smartphone sector. (US$1=RM4.37)

According to Juniper Research, the market will be driven by the adoption of eSIM-enabled consumer devices, as seen in Apple’s recent release of the eSIM-only iPhone 14; triggering accelerated operator support.

“eSIMs are embedded within devices, enabling devices and sensors to seamlessly switch between network operator profiles,” it said in a statement.

The research anticipated Apple will expand deployment of eSIM-only devices to Europe this year, with eSIM technology key to minimising the time-consuming establishment of roaming agreements within the fragmented European telecommunications market.

It identified that the total number of smartphones leveraging eSIM connectivity will increase from 986 million in 2023, to 3.5 billion by 2027, with manufacturers such as Google and Samsung developing an equivalent eSIM-only Android device in order to compete with Apple and maintain their global market positioning.

Research author Scarlett Woodford said despite operator concerns regarding the disruptive impact of eSIMs on existing business models; growing support from smartphone manufacturers will place additional pressure on operators.

“As such, service providers must support eSIM connectivity to avoid subscriber attrition as technology awareness increases,” she said.

In response, the report urges industry bodies to work closely with the Chinese government to develop specifications that allow eSIM support whilst addressing requirements for device monitoring and tracking.

According to the report, the total number of eSIM-connected smartphones in China will increase from 103 million in 2023 to 385 million by 2027, assuming country-specific standards are implemented; allowing eSIM use in smartphones.

“Current regulations prevented Chinese-based device manufacturers from selling to their home market, limiting investment and innovation,” it added.

-- BERNAMA

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