Embedded Subscriber Identity Module Market Outlook:
Embedded Subscriber Identity Module Market size was USD 2.7 billion in 2024 and is estimated to reach USD 12.6 billion by the end of 2037, expanding at a CAGR of 13.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of embedded subscriber identity modules is estimated at USD 3.1 billion.
The semiconductor fabrication and microcontroller unit (MCU) integration are vital segments of embedded subscriber identity module (eSIM) market. The study supply chain leads to a stable and consistent eSIM trade. The upstream segment is estimated to be influenced by the advanced semiconductor fabrication facilities of the U.S., Taiwan, and South Korea. The Census Bureau study reveals that the U.S. imported USD 633 billion worth of electronic components in 2024. The majority of them were integrated circuits and microelectronics, which are vital for eSIM production. The raw materials, such as silicon wafers, gallium arsenide, and gold bonding wire supply, are led by Asia Pacific countries, including Japan and China.
The U.S. Bureau of Labor Statistics reveals that the producer price index for semiconductors and related components increased by 4.9% year-over-year in the first quarter of 2025, underlining ongoing supply chain constraints and rising labor costs in Asia. Whereas the consumer price index for telephone and internet hardware in the U.S. grew by 2.5% in April 2025, fueled by strong demand for connected devices, such as wearables and smart mobility applications. Moreover, the ongoing investments in the eSIM-related R&D are further estimated to propel the overall embedded subscriber identity module (eSIM) market growth in the coming years. The U.S. federal government invested more than USD 3.9 billion in semiconductor and secure communications research in FY 2024. The favorable government policies and funding schemes are set to attract numerous embedded subscriber identity module investors.
Embedded Subscriber Identity Module Market - Growth Drivers and Challenges
Growth Drivers
- Rising demand for enhanced mobile security: The eSIMs with secure elements and hardware-based authentication are set to gain high application in mobile security. The technological advancements are also set to drive the adoption of innovative embedded subscriber identity modules. The European Union Agency for Cybersecurity (ENISA) states that more than 80.4% of telecom breaches in 2023 stemmed from SIM cloning and provisioning attacks. Key players are focusing on the launch of GSMA-certified secure eSIM platforms for defense and finance applications. The increasing ICT budgets, particularly for eSIMs, are likely to fuel the overall trade in the coming years.
- Growth in automotive telematics and mobility services: The increasing adoption of IoT solutions in modern vehicles is estimated to boost the demand for embedded subscriber identity modules. The constant cellular connectivity for navigation, infotainment, and diagnostics is poised to fuel the trade of embedded subscriber identity module technologies. The big automakers, such as Tesla, BMW, and Volvo, are leading the adoption of embedded subscriber identity module solutions. More than 58.4 million new cars were shipped with eSIMs globally in 2024, and this number is expected to double by 2030. The importance of eSIMs in fleet tracking, insurance telematics, and cross-border services is fueling their application in the mobility-as-a-service (MaaS) ecosystems.
Technological Innovations in the Embedded Subscriber Identity Module (eSIM) Market
The technological advancements are set to double the revenues of embedded subscriber identity module technology manufacturers during the projected period. The swift integration of digital technologies is estimated to propel the demand for embedded subscriber identity module systems in large-scale enterprises. The advanced technologies, including AI, IoT, cloud computing, and blockchain, are set to enhance the operational efficiency of embedded subscriber identity module solutions. The table below reveals the current technological trends and their outcomes.
|
Technological Trend |
Industry |
Company/Example |
Adoption/Impact Statistic |
|
Remote SIM provisioning (RSP) |
Telecom |
AT&T, T-Mobile |
Enabled 100% eSIM onboarding for postpaid users by Q4 2024 |
|
Blockchain for identity |
Financial Services |
HSBC, ING |
43.4% of global banks using blockchain with eSIM for identity proofing |
|
AI-powered eSIM analytics |
Manufacturing |
Siemens |
Dereased downtime by 22.4% via AI+eSIM sensor diagnostics |
Challenges
- Licensing complexity and regulatory approvals: The complex and time-consuming approval processes are estimated to hamper the sales of embedded subscriber identity modules to some extent. This can be due to the unstable eSIM licensing frameworks. In African markets, many telecom operators are required to undergo multi-tiered licensing from both national ICT authorities and security agencies, which lowers the trade of embedded subscriber identity modules. Licensing delays led to average market entry delays of 9-12 months in emerging economies, says the World Trade Organization.
- Unstable pricing models and subsidy limitations: The low financial support for embedded subscriber identity modules is expected to hamper the overall trade to some extent. eSIM hardware and lifecycle management are not subsidized by telecom regulators in many regions, which drives up end-user pricing. The World Trade Organization (WTO) study reveals that in 2023, the eSIM modules were priced 18.5% to 25.3% higher than conventional SIM cards, mainly due to increased secure element requirements and remote provisioning platforms. Thus, the subsidy limitations are likely to lower the production of embedded subscriber identity modules in price-sensitive markets.
Embedded Subscriber Identity Module Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
13.8% |
|
Base Year Market Size (2024) |
USD 2.7 billion |
|
Forecast Year Market Size (2037) |
USD 12.6 billion |
|
Regional Scope |
|
Embedded Subscriber Identity Module Market Segmentation:
Deployment Segment Analysis
The consumer eSIM segment is projected to account for 55.5% of the global embedded subscriber identity module market share by 2037. The sales of consumer eSIMs are mainly fueled by their increasing adoption in smartphones, wearables, and tablets. The GSMA’s eSIM Consumer Research (2024) reveals that more than 80.4% of flagship smartphones are estimated to ship with eSIM-only support by 2030 globally. Such estimates highlight the increasing popularity of consumer eSIM solutions. The increasing push of governments towards the reduction of e-waste via digital SIM adoption, particularly in developed markets, to align with climate goals, is also promoting the sales of consumer eSIMs.
Application Segment Analysis
The automotive segment is estimated to capture 35.8% of the global embedded subscriber identity module market share throughout the forecast period. The increasing integration of eSIM in connected cars for telematics, over-the-air (OTA) updates, and eCall compliance is propelling its importance in the automotive sector. The United Nations Economic Commission for Europe (UNECE) and the EU Mobility Package 2023 report reveal that all new vehicles in the EU are strictly required to support eCall via embedded connectivity. Such compliance needs are accelerating the sales of automotive eSIMs. Also, the initiatives of the U.S. Department of Transportation under the ITS Strategic Plan (2024-2028), prioritizing cellular-V2X and smart infrastructure, are fueling the adoption of eSIM-enabled modules for secure communication
Our in-depth analysis of the global embedded subscriber identity module market includes the following segments:
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Segment |
Subsegments |
|
Deployment Type |
|
|
Application |
|
|
Solution Type |
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Embedded Subscriber Identity Module Market - Regional Analysis
APAC Market Insights
The Asia Pacific embedded subscriber identity module market is anticipated to hold 34.1% of the global market share through 2037. The robust digital transformation is poised to fuel the sales of embedded subscriber identity module solutions in the years ahead. The 5G rollouts and IoT demand are also expected to fuel the demand for embedded subscriber identity modules. The government-led smart infrastructure programs are set to accelerate the deployment of embedded subscriber identity modules. In addition, the public-private initiatives in cybersecurity, smart mobility, and edge computing applications are expected to further propel the sales of embedded subscriber identity module solutions.
China is expected to lead the sales of embedded subscriber identity module technologies owing to the massive digitization initiatives. The smart manufacturing and automation trends are also contributing to the increasing demand for eSIMs. According to the Ministry of Industry and Information Technology (MIIT) and China Academy of Information and Communications Technology (CAICT) study, there were around 89.5 million active eSIM-enabled devices in 2023. Also, through the 14th Five-Year Plan (2021-2025), the government allocated nearly €3.8 billion to boost eSIM deployment across public transport, connected health, and industrial automation sectors.
The India eSIM market is set to increase at the fastest CAGR throughout the study period. The 5G introduction and swiftly expanding digital infrastructure are expected to promote the sales of embedded subscriber identity module solutions in the coming years. The MeitY and NASSCOM study reveals that eSIM technology adoption in the country increased by 92.5% between 2015 and 2023. The same source also explains that nearly 4.9 million enterprises leverage eSIM solutions. The integration of digital technologies in automotive, BFSI, agriculture, and healthcare sectors is likely to propel the demand for embedded subscriber identity module solutions in the years ahead.
Country-Specific Insights
|
Country |
2024 ICT Budget (€ Billion) |
eSIM Share (%) |
2024 eSIM Spend (€ Billion) |
Notable Statistic |
|
Japan |
11.6 |
6.5 |
0.73 |
Japan allocated 6.4% of its ICT budget to eSIMs in 2024, up from 4.0% in 2022 - METI |
|
Malaysia |
3.5 |
4.9 |
0.16 |
eSIM adoption doubled from 2013–2023; govt funding up 64.5% - MDEC |
|
South Korea |
7.7 |
7.5% |
0.56 |
64.6% of telecom subscriptions eSIM-based by 2023 - MSIT, NIPA |
North America Market Insights
The North America embedded subscriber identity module (eSIM) market is foreseen to expand at a CAGR of 11.5% from 2025 to 2037. The rapid 5G infrastructure development and strong consumer electronics demand are likely to accelerate the sales of embedded subscriber identity module solutions. The favorable digital transformation policies in the U.S. and Canada are also poised to fuel the trade of embedded subscriber identity module solutions. The increasing popularity of industrial IoT systems and connected vehicles is further increasing the adoption of embedded subscriber identity modules.
The demand for embedded subscriber identity module solutions in the U.S. is gaining momentum, owing to the widespread 5G infrastructure. The transition to digital identity frameworks is also fueling the importance of embedded subscriber identity modules. The Federal Communications Commission (FCC) states that over 85.4% of households had 5G coverage in 2024, which directly promotes the adoption of eSIM-enabled devices across telecom, automotive, and wearables. Also, the federal BEAD Program, part of the Infrastructure Investment and Jobs Act, invested nearly USD 42.7 billion in broadband and smart connectivity, which directly boosts the demand for eSIM in remote provisioning and IoT systems.
The embedded subscriber identity modules market in Canada is mainly influenced by the federal investments in digital transformation and rural connectivity. The rapid expansion of 5G infrastructure is also opening lucrative earning opportunities for embedded subscriber identity module companies. The Innovation, Science and Economic Development (ISED) reveals that around CAD 2.8 billion was invested in 2023 to boost smart connectivity, which fueled the eSIM integration in rural and Indigenous communities. The supportive government polices and funding are estimated to boost the sales of eSIMs in the coming years. The green ICT strategy promoting paperless onboarding is further propelling the adoption of embedded subscriber identity modules.
Europe Market Insights
The Europe eSIM market is poised to capture 27.5% of the global market share between 2025 to 2037. The massive digital infrastructure investments across the UK, Germany, France, the Nordics, and other EU nations are creating a profitable environment for key players. The widespread 5G deployment and increasing demand for connected IoT ecosystems are set to accelerate the adoption of embedded subscriber identity module technologies. The EU’s Digital Decade policy targets full 5G coverage and device interoperability by 2030, which directly fuels the sales of embedded subscriber identity modules. The growing smart grid applications and secure authentication requirements are also contributing to the high trade of eSIMs.
Germany is expected to lead the sales of eSIM market owing to its strong digitalization strategy and Industry 4.0 policies. The eSIM integration is gaining traction across manufacturing, automotive, and smart city sectors. The Federal Ministry for Digital and Transport (BMDV) estimates that the country aims for 100% smart device interoperability across public infrastructure by 2035. Such developments are attracting numerous embedded subscriber identity module market players to invest in the country.
The strategic investment in digital public infrastructure and nationwide IoT integration is propelling the sales of embedded subscriber identity module solutions in France. The eSIM mandates across healthcare, mobility, and energy sectors are set to double the revenues of key players in the years ahead. The government, under its 2030 strategy, is funding more than €1.6 billion towards smart digital ecosystems, with a majority of the share allocated to secure identity and connectivity technologies, including eSIMs. Thus, France is expected to register an increasing adoption of embedded subscriber identity modules in the years ahead.
Country-Specific Insights
|
Country |
2023 ICT Budget (€ Billion) |
eSIM Allocation (%) |
2023 eSIM Spend (€ Billion) |
2024 Growth YoY (%) |
|
United Kingdom |
12.9 |
6.3 |
0.79 |
11.5 |
|
Germany |
17.5 |
8.0 |
1.39 |
14.9 |
|
France |
13.3 |
6.7 |
0.88 |
12.7 |
Key Embedded Subscriber Identity Module Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global embedded subscriber identity module (eSIM) market is characterized by the presence of gigantic companies and the increasing emergence of start-ups. The leading companies are holding a dominant position in the global landscape owing to their advanced security architecture and strong EU regulatory alignment. They are also focusing on R&D activities to enhance their product offerings. The companies operating in the developing markets are employing localized innovation and low-cost deployment tactics. The strategic partnerships and collaborations are expected to boost the market presence and revenues of key players. Regional expansion tactics are also poised to aid industry giants to earn fruitful gains from untapped opportunities.
Here is a list of key players operating in the global eSIM market:
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Thales Group |
France |
14.8% |
|
Giesecke+Devrient GmbH (G+D) |
Germany |
12.9% |
|
STMicroelectronics |
Switzerland/France |
10.5% |
|
Infineon Technologies AG |
Germany |
8.9% |
|
Qualcomm Technologies Inc. |
USA |
8.1% |
|
IDEMIA Group |
France |
xx% |
|
NXP Semiconductors |
Netherlands |
xx% |
|
Samsung Electronics Co., Ltd. |
South Korea |
xx% |
|
MediaTek Inc. |
Taiwan |
xx% |
|
Apple Inc. |
USA |
xx% |
|
Microsoft Corporation |
USA |
xx% |
|
Telstra Corporation Ltd. |
Australia |
xx% |
|
Tata Communications Ltd. |
India |
xx% |
|
Axiata Group Berhad |
Malaysia |
xx% |
Below are the areas covered for each company in the eSIM market:
Recent Developments
- In May 2024, IDEMIA entered into a strategic partnership with Orange Business to introduce an enterprise-focused eSIM orchestration suite for global corporate fleets and connected workforce devices. The cloud-native platform, since its deployment contributed a 28.3% rise in enterprise eSIM connections.
- In March 2024, Qualcomm Technologies Inc. announced the launch of a new line of AI-integrated eSIM chipsets (Snapdragon eSIM 9 series). The solution offers energy-aware scheduling (EAS) for low-power IoT and edge applications. In February 2024, Thales Group unveiled its GSMA-certified eSIM 3.0 management platform. The solution targets large-scale IoT deployments across smart mobility, utilities, and manufacturing.
- In May 2024, KDDI Corporation collaborated with NEC Corporation to introduce Japan’s first eSIM-enabled private 5G smart factory solution. The initial deployments with two Tier 1 automotive suppliers led to a 26.3% rise in network uptime and an 18.4% fall in manual provisioning costs.
- In March 2024, NTT DOCOMO launched a Universal eSIM Activation Platform targeting multi-device consumer ecosystems and industrial clients. This innovation led to a 9.7% mobile service revenue growth in the first quarter of 2024.
- Report ID: 7879
- Published Date: Jul 10, 2025
- Report Format: PDF, PPT
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