eSIM market projected to increase to almost 1bn shipments by 2021, says IHS Markit

Don Tait, senior analyst, IHS Technology

The embedded SIM (eSIM) market is projected to increase nearly nine-fold, from a relatively small base of 108.9 million shipments in 2016 to 986 million shipments in 2021. This is according to the latest research from IHS Markit.

So, what will drive growth in the eSIM sector, asks Don Tait, senior analyst, IHS Technology over the next five years?

eSIM happening initially in M2M and tablets

Initially, eSIM shipment growth has been driven by areas such as Machine-to-Machine (M2M) and tablets. Volume growth is expected to jump when eSIM is introduced into the cellular handset and other consumer electronic devices.

The introduction of eSIM appears more attractive in the non-handset environment. Growth also is likely to occur in segments including wearables, consumer electronics and IoT devices, where it can move more quickly because stakeholders do not have to adapt existing legacy processes.

eSIM in the cellular handset?

There has been much hype around eSIM and, specifically, when it finally will be incorporated into the cellular handset. At the time of writing, there are no eSIMs in smartphones with telecom functionality. IHS Markit believes that eSIM has been driven by the GSMA and will finally find its way into smartphones by 2018.

Incorporating eSIM into cellular handsets is likely to happen first with tier-two or tier-three handset suppliers as part of small-scale introductions to test the market.

Tier-one suppliers such as Samsung, Apple and Huawei, are more likely to introduce eSIM in their smartphones in 2019. Once one of the “top three” smartphone suppliers introduces eSIM into its handset models the market is expected to shift, resulting decreased demand for removable SIMs. On the plus side, SIM card integrated circuit (IC) revenues actually may increase because the SIM card IC price in an eSIM is higher than a removable SIM.

ZVNJTS5wbmc=

Removable SIM will not disappear overnight

The removable SIM card is not going to die out and be replaced overnight. However, the proportional importance of the removable SIM will decline over time, from 5.4 billion shipments (98.0% of the total) in 2016 to 5.1 billion (83.9% of the total) in 2021.

Benefits of eSIM

The eSIM can have benefits for different stakeholders in the ecosystem:

    • For consumers, it can lead to lower costs of connected products; an increase in the number of connected devices; and an improved customer experience with greater flexibility.
    • For MNO’s, the eSIM can give rise to new market opportunities in areas such as M2M, IoT and the connected car. It can also lead to the reduction of SIM handling, integration and handling costs.
    • For SIM card suppliers, there is the opportunity to enter new markets such as IoT, M2M and the connected car, and to reduce physical production costs.

The author of this blog is Don Tait, senior analyst, IHS Technology

Comment on this article below or via Twitter: @IoTNow OR @jcIoTnow

RECENT ARTICLES

LEXI develops universal IoT platform for easing IoT experience

Posted on: December 5, 2022

Berkeley, United States – LEXI, the company behind the comprehensive IoT technologies that are transforming how both enterprises and consumers manage and automate their smart spaces, announced the LEXI IoT platform – a sizable step forward in easing the IoT experience for everyone connecting products, across apps, and across ecosystems.

Read more

CloudBees joins Amazon EC2 Spot Ready Partner program

Posted on: December 5, 2022

San Jose, United States – CloudBees, a software delivery platform for enterprises, announced that it achieved the Amazon Web Service (AWS) Service Ready program for Amazon Elastic Compute Cloud (Amazon EC2) Spot instances. This designation recognises that CloudBees and its CloudBees CI solution has demonstrated support for Amazon EC2 Spot instances.

Read more
FEATURED IoT STORIES

The IoT Adoption Boom – Everything You Need to Know

Posted on: September 28, 2022

In an age when we seem to go through technology boom after technology boom, it’s hard to imagine one sticking out. However, IoT adoption, or the Internet of Things adoption, is leading the charge to dominate the next decade’s discussion around business IT. Below, we’ll discuss the current boom, what’s driving it, where it’s going,

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more