Analysts predict eSIM hypergrowth period

Counterpoint Research predicts that more than nine billion eSIM-enabled and related technology devices will hit the market by 2030. This will be driven by the increasing use of both smartphones and IoT devices.

The analyst firm’s latest report on this segment projects a 22 percent compound annual growth rate (CAGR) for shipments of so-called xSIM devices, which include devices supporting eSIM, iSIM, and IoT-focused Soft SIM and nuSIM.

The company predicts that by 2030, nearly 70 percent of mobile devices sold will support eSIM or related technology.

In the consumer segment, the company predicts that the installed base of xSIM-enabled devices will exceed 2.5 billion by 2030.

“The industry has passed a tipping point with the launch of the US-only iPhone with eSIM in 2022 and is now entering a period of hypergrowth,” the company said. “This is evidenced by the growing number of OEMs launching eSIM-enabled devices.”

It noted that while smartphones currently enjoy the greatest interest in the consumer market, there is significant potential for other devices, including connected cars, drones and routers, where managing a physical SIM card is difficult.

Counterpoint senior analyst Ankit Malhotra highlighted that in addition to eSIM, there are expectations of an upcoming iSIM boom, noting that while the technology is relatively new to the market, “We expect iSIM adoption to gain momentum over the next three years.”

“This technology has the potential to improve device performance by reducing cost, size and complexity, making it ideal for use in a wide range of IoT applications, from smart home devices to industrial sensors.”