e-SIM Market Will be Driven by Growing Demand for Smart Devices Over the Coming Years | Key Players Apple, AT&T, Gemalto NV, Singtel, NTT Docomo, Telefónica, Deutsche Telekom, NXP Semiconductors, STMicroelectronics, Samsung
Growing demand for smart devices will drive the e-SIM market demand. Several intelligent devices such as smartwatches and health bands are being integrated with these programmable infrastructures, helping them to connect with the cellular infrastructure. The chips occupy less space, allowing the device to be slimmer and lighter. This allows the manufacturers to use the space for providing other technological features and functions in their electronic products. For instance, HUAWEI Watch 2 Pro is an Android wear smartwatch with e-SIM features, offering several advantages such as sleek design, built-in GPS, Wi-Fi, and NFC connectivity.
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Improved security and convenience in the adoption of these digital technologies over traditional cards are major factors driving the e-SIM market growth. Several security & damage issues such as lost cards and slot damage in conventional cards will drive customers to adopt these digital chips. This will help in managing multiple cards, providing easy connectivity, retrieval of lost data, and easy tracking of the cellular devices. Increasing regulations and the strict implementation of policies by the government for boosting the M2M communications are propelling the adoption of these programmable built-in technologies for enhancing networking & communications in the telecommunication sector. These regulations are being developed by government bodies to enhance the technologies and motivate the manufacturers in the development of advanced solutions, which will improve the network connectivity.
Consumer electronics accounted for a substantial industry share in the e-SIM market. Technological advancements in several consumer electronics products, such as smartphones and smart TV, are driving the demand for sophisticated connectivity and enhanced networking solutions. A rise in the adoption of IoT & cloud computing will drive the integration of these digital chips to utilize them in providing customers exceptional benefits. For instance, in August 2017, Samsung in collaboration with Gemalto launched Samsung’s Gear S2 Classic 3G in Amsterdam, which is the first smartwatch with e-SIM features. Additional features offered by these electronic chips allow the users to send and receive text messages, calls, consulting fitness data, read emails, receive notifications, navigate, and browse social networks. Such features will positively drive the adoption, thereby propelling the e-SIM market growth.
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Asia Pacific is expected to be the fastest growing region in the e-SIM market. The increasing availability of the manufacturers and the growing demand for advanced technologies and solutions among customers are driving the Asia Pacific e-SIM market. The rapid expansion of the consumer electronics sector in countries including India, China, and Japan is predicted to generate a high demand for such technologies. Moreover, the manufacturers in this sector are developing smart technologies that are integrated with intelligent solutions, driving the demand for digital features in the devices.
Key players operating in e-SIM market include Apple, AT&T, Gemalto NV, Sierra Wireless, Singtel, NTT Docomo, Telefónica, Deutsche Telekom, Giesecke & Devrient, NXP Semiconductors, Infineon Technologies, STMicroelectronics, Samsung Electronics, and Singapore Telecommunications Ltd, among others.
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