E-Sim will Replace Traditional SIM Cards within Five years
The e-SIM is already a mainstream technology in the cellular machine to machine (M2M) market. However, the technology will benefits the consumers and will create opportunities and challenges for operators, IoT device manufacturers, Original Equipment Manufacturers (OEMs), SIM vendors, and service providers across various industries.
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With the implementation of the technology, manufacturers are not required to accommodate a SIM card slot creating further flexibility in terms of deign. For instance, Apple Inc. chose e-SIM technology to employ in Apple Watch 3, shrinking the size without sacrificing battery. The technology will also benefit the international travellers in swapping the SIMs, and services in order to stay connected. Although; universal adoption of e-SIM has to be approved by all major carriers and Apple & Google’s Pixel 2 are the only carriers of the technology, paving hurdle for the industry growth.
The global market is rising progressively owing to several advantages of E-SIM card over conventional SIM cards in terms of standardization of technical specifications, compact design, reduced operational costs and logistics. Furthermore, ease of switching service providers in real time and, vast growth opportunities in rising application in automotive sector is also anticipated to enhance the growth over the forecast period. However, conceivable resistance shown by service providers towards the adoption, as e-SIM cards eliminates consumer’s visit to the physical stores of mobile network operators (MNOs) may hinder the market.
Based on application, the E-SIM card industry is segmented into wearable & companion devices, Machine to Machine (M2M), smartphones, tablets & laptops. Machine to Machine segment is further segregated to connected cars, utilities and others. Connected cars segment under M2M, contributed leading revenue generation for rising implementation in automotive industry for weather information and infotainment.
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Europe region is projected to contribute majorly in revenue generation globally owing to favorable government initiatives for the employment of “Industry 4.0” technology & solutions. North America market is expected to witness gradual growth owing to home to key players as well as rise in technological adoption of e-SIM cards in M2M devices. China, Japan, South Africa and Brazil are few other countries which are projected to witness growth over the forecast period. Key industry players are Apple Inc., Deutsche Telekom AG, Gemalto N.V., Samsung, NTT DOCOMO Inc., Sierra Wireless Inc., OT-Morpho, Giesecke & Devrient GmbH, Telefonica S.A., and ST Microelectronics.
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