Standardized by Groupe Speciale Mobile Association and already covering more than 800 mobile operators from across the globe, the e-SIM (electronic subscriber module) technology is gaining prominence owing its standardized set of technical specifications and thus the better security it allows as compared to conventional SIM cards. Moreover, the compact nature of e-SIMs provides the benefit to OEMs of getting to add additional storage or a larger and higher capacity battery in smartphones and tablets. The technology covers over 800 mobile operators across the globe and is constantly expanding.
However, multinational organizations are showing a plausible resistance towards the adoption of e-SIMs as these SIMs eliminate the need for consumers to taking out time and visiting physical stores of network providers. This can, in a way, enhance the bargaining power of the consumers, thus reducing profit margins for networking companies.
According to a recent market research report by Transparency Market Research, the global E-SIM Market will expand at an impressive 13.5% CGAR from 2017 to 2025, rising to a revenue opportunity of US$14,613.1 mn by 2025.
Listed below are some of the key trends observed in the market in the past few years:
Ease of Switching Network Operators: One of the key factors encouraging consumers to adopt e-SIMs is their ease of switching between network providers in real time. While conventional SIMs do not provide this facility, e-SIMs allow users to change their network providers at their convenience, helping them stay away from unnecessary network turbulences or international roaming charges. The facility has especially been proven to be highly beneficial when it is used in smart meters and smart, connected cards where significant logistics and operations costs can be saved.
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Europe Presents Massive Rise in Demand: The E-SIM Market in Europe has remained one of the key contributors of revenue to the global market in the recent years. This has been chiefly attributed to vast initiatives taken by governments in the region aimed at the implementation of automation and effective data exchange technologies in the manufacturing sector, including technologies such as the Internet of things, cyber-physical systems, cloud computing and cognitive computing. The trend is expected to remain strong over the next few years and Europe is likely to remain one of the key contributors of revenue to the global market.
Automotive Industry Provides Promising Growth Opportunities: One of the key factors working in favor of the global e-SIM market is their increased adoption in the consumer electronics devices and the automotive industry. Advanced vehicles already provide vast applications to e-SIMs and the applications could increase massively as a number of connected consumer electronics devices increasingly make way into a variety of vehicles. This emerging area of application can provide vast growth opportunities to the vendors in the market.