eSIM Market Size is Set to Achieve USD 17.98 Billion by 2031, With CAGR of 18.7% | The Insight Partners

NEW YORK, June 26, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global eSIM market is observing significant growth owing to the rising adoption in smartphones, integration of eSIM in the automotive industry, and cost-saving benefits to drive eSIM adoption.

The eSIM market size was valued at US$ 5.51 billion in 2024 and is expected to reach US$ 17.98 billion by 2031; it is estimated to register a CAGR of 18.7% during 2025–2031. Key factors driving the growth of the eSIM market include the rising adoption of smartphones, integration of eSIM in the automotive industry, and cost-saving benefits to drive eSIM adoption. The increasing integration of eSIM technology in smartphones is a key driver propelling the growth of the global eSIM market. As leading smartphone manufacturers such as Apple, Samsung, and Google continue to embed eSIM functionality in their latest models, consumer awareness and adoption are rising significantly. This shift marks a departure from traditional SIM cards, offering enhanced flexibility, security, and a seamless user experience.

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The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the eSIM market comprises a vast array of component, organization size and industry vertical which are expected to register strength during the coming years.

Overview of Report Findings

1. Rising Adoption In Smartphones: The increasing integration of eSIM technology in smartphones is a key driver propelling the growth of the global eSIM market. As leading smartphone manufacturers such as Apple, Samsung, and Google continue to embed eSIM functionality in their latest models, consumer awareness and adoption are rising significantly. This shift marks a departure from traditional SIM cards, offering enhanced flexibility, security, and a seamless user experience. According to Telna, Inc., by 2030, an estimated 98% of all smartphone connections in North America will utilize eSIM technology. Google has played a pioneering role in driving eSIM adoption within the Android ecosystem, launching the first eSIM-enabled smartphone the Google Pixel 2 in 2017. Since then, Google has consistently expanded eSIM support across its Pixel series, underscoring its strategic focus on advancing toward an eSIM-only future.
   
   
2. AI in eSIM Connectivity Management: The integration of artificial intelligence (AI) into eSIM connectivity solutions is significantly enhancing network performance and user experience. By leveraging real-time data, user behavior analytics, and current network conditions, AI optimizes network selection and ensures seamless, uninterrupted connectivity. Through continuous monitoring and analysis of network performance, AI enables dynamic switching between eSIM profiles, automatically selecting the most efficient network without requiring manual input—delivering a truly "always connected" experience. As of 2023, nearly 400 network operators worldwide offer eSIM services, creating a robust foundation for AI-driven capabilities to scale across global markets.
   
   AI also plays a pivotal role in strengthening the security of eSIM technology. Advanced algorithms enable real-time threat detection, anomaly identification, and predictive risk mitigation, helping to safeguard sensitive user data during transmission. These capabilities ensure that eSIM connectivity remains both secure and reliable, even in complex digital environments. Moreover, AI is streamlining eSIM provisioning and lifecycle management across multiple devices. This automation simplifies operations for service providers, enabling efficient remote management of large device fleets without the logistical burden of physical SIM cards. AI-powered activation further reduces setup time and complexity, enhancing the overall user experience and reducing operational overhead.
   
   
3. Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific.

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Market Segmentation

• On the basis of component, the global eSIM market is segmented into hardware and software & services. The hardware segment dominated the market in 2024.
• On the basis of type, the market is segmented into consumer eSIMs, IoT eSIMs, and travel eSIMs. The consumer eSIM segment is further segmented into smartphones, laptops and tablets, wearables, connected cars, and others. The consumer eSIMs segment dominated the market in 2024.

Competitive Strategy and Development

• Key Players: Giesecke Devrient GmbH, Telefonica SA, Deutsche Telekom AG, IDEMIA France SAS, Infineon Technologies AG, Vodafone Group Plc, NXP Semiconductors NV., KORE Wireless, STMicroelectronics NV, and Thales SA are among the key players profiled in the eSIM market report.
• Trending Topics: Digital eSIM, iSIM, Travel eSIM, among others

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Global Headlines

• "Infineon Technologies AG has claimed the industry's smallest GSMA-compliant and first 28-nm eSIM solution with the launch of the OPTIGA Connect Consumer OC1230. It allows up to 50 percent less energy consumption compared to eSIMs on the market, extending the lifetime of the device's battery. Targeting mobile consumer devices, such as wearables, tablets, smartphones, and notebooks, the eSIM solution also contributes to greater device functionality."
• "Vodafone announced the launch of a new digital travel platform centered around a Travel eSIM, providing users of any network with affordable and reliable data connectivity while traveling. Users of Vodafone's Travel eSIMs can add mobile data and keep their existing number when traveling – whatever network they are on – giving them worry-free connectivity when using translation services, viewing online maps, and accessing email and messages. Before they travel, users download the app or visit the website, pick or build their plan, and install the eSIM within minutes."

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Conclusion

The eSIM (Embedded SIM) market is experiencing rapid growth, driven by increasing adoption across consumer electronics, automotive, and industrial IoT sectors. Unlike traditional SIM cards, eSIMs are embedded directly into devices, enabling remote provisioning and offering greater flexibility for users and mobile network operators. This technology is gaining momentum as manufacturers seek to eliminate physical SIM slots to support sleeker device designs and improved security.

The report from The Insight Partners, therefore, provides several stakeholders—including suppliers, distributors, customers, competitors, and others —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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