- The proportion of global smartphone sales with support for eSIM will jump from over a quarter (27%) to over half (56%) from 2023 to 2028.
- North America is leading the charge on eSIM adoption, representing more than half of all global eSIM users.
- eSIM roaming is set for further strong growth supported by wide service availability and pent-up customer demand.
London, 4 June 2024: CCS Insight’s latest Spotlight report highlights the vast potential for the use of eSIM in smartphones. It reveals a technology on the cusp of bringing about indelible changes to the way people connect with mobile providers and manage their cellular subscriptions.
The report reveals that the catalyst for growth was the arrival of the first eSIM-only iPhone, for the US market in 2022. This disruption is pushing other operators to offer the same technology, leaving many customers little option but to embrace it.
The eSIM ecosystem is already well developed; 800 operators support the technology and there are more than 200 eSIM-enabled devices. But although adoption surged more than 150% in 2023, CCS Insight’s analysis shows it still represents a tiny fraction of total global mobile subscribers, at only 150 million, compared with 8.9 billion cellular subscriptions worldwide.
Luke Pearce, Senior Analyst commented: “Our extensive research into eSIM signals a technology that’s ready to go mainstream. Driven by Apple, but with growing support from Android-powered device manufacturers, the number of compatible mobile phones will more than double from 1 billion at the end of 2023 to 2.5 billion in 2028. Over the same period, the share of global sales of smartphones that support eSIM technology will jump from just over a quarter (27%) to over half (56%)”.
The report reveals that until recently, many telecom operators were unwilling to support eSIM in smartphones, fearful of conceding relevance to big tech rivals, encouraging new competition and losing roaming revenue.
Kester Mann, Director of Consumer and Connectivity, added: “We found a shift in sentiment among operators to be more accepting of the technology and increasingly optimistic about new opportunities it can enable. These include supporting more digital customer journeys, attracting new customers, improving environmental credentials and achieving major cost savings, estimated by the research to total more than $3 billion in the industry by 2028”.
Apple’s strong push has propelled North America into an early lead in eSIM. The region already hosts over half of all global eSIM users, with 50 different providers supporting the technology. Now all industry eyes are on whether Android manufacturers will accelerate their efforts to close the gap. This includes leading Chinese brands, which have so far only introduced eSIM on a limited number of international models because of regulations barring the technology in their home market.
One of the growing uses for eSIM assessed in the report is international roaming. Analysis shows that a flood of specialist providers have entered the market in recent years, offering more convenient and affordable options to access mobile data when travelling.
The report charts strong growth in the number of roaming eSIMs set to be provisioned over the next few years, after eSIM roaming doubled in 2023. This is supported by CCS Insight’s own consumer research*, which shows that one in 10 people in five leading markets have already used an eSIM for roaming. Of those yet to do so, more than 60% said they would consider taking an eSIM for roaming in the future.
Probing into people’s interest and awareness of eSIM, CCS Insight’s research offers encouraging findings as four in 10 people said they had heard of eSIM. When the concept was explained, over three-quarters of respondents said they would be interested in eSIM. However, some of the main benefits were not fully understood.
This highlights a major challenge for the industry. As momentum for eSIM gathers pace, focus should increasingly turn to support people embarking on new customer journeys, particularly those who are less confident using new technology. It could be that those companies best able to guide their customers along this path will end up being the most successful.
* The research was conducted in March 2024 in the UK, the US, Germany, Spain and Australia. The sample was a minimum of 1,000 respondents in each market and was nationally representative in each by age, gender and region.
About CCS Insight
CCS Insight’s research and advisory services keep technology companies informed of current and future trends in a range of industries. Its global insights provide technology professionals with clarity and confidence in their decision-making processes.
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