New research from Kaleido Intelligence, a roaming and connectivity market intelligence and consulting firm, has found that travel eSIM (embedded subscriber identity module) providers, including eSIM aggregators, MNOs (mobile network operators) and MVNOs (mobile virtual network operators), will see retail spending on such services soar 500% over the next 5 years. Kaleido’s new Travel eSIM Outlook 2023: Market Adoption and Roaming Impact research forecasts that the global travel eSIM market will be worth close to $10 billion (€9.11 billion) in 2028, accounting for over 80% of total travel SIM spend by then.
The research found that this will drive retail spend on travel connectivity services, including roaming packages and travel SIMs, to be worth over $30 billion (€27.33 billion) by 2028.
eSIM plans to erode physical SIM travel market share‘
The research found that the combined migration towards ‘eSIM-first’ smartphones and the ability to offer a more seamless journey to travel SIM purchasing is likely to help accelerate travel SIM adoption and erode the existing physical travel SIM market.
Nitin Bhas, chief of strategy and insights at Kaleido comments, “High roaming costs, growing traveller awareness of eSIM, and the future ratification of GSMA eSIM specifications for smartphones in China will further drive this adoption surge for alternative eSIM solutions. Nevertheless, the market landscape presents mobile operators with the opportunity to reshape their traditional roaming strategies, attract new customers through similar travel eSIM services and to drive usage amongst existing customers with compelling roaming deals.”
New consumer and business travel and roaming 2023 survey findings
Kaleido’s new travel and roaming survey found that the travel SIM market is experiencing a shift towards digital SIMs or eSIMs, which offer convenience and flexibility for travellers by allowing them to switch between mobile operators without physically swapping SIM cards.
Key travel eSIM findings from the survey include:
- Roaming remains popular for cellular connectivity across the 20 surveyed markets, alongside travel SIMs, Wi-Fi usage, and non-usage.
- Leisure travellers often use both travel SIMs and roaming services, averaging over 1 method per traveller.
- Business travellers rely heavily on roaming and roaming add-ons as their default connectivity method, with over 50% utilising standard roaming or roaming packages from their typical providers.
- Lower cost is the main driver for choosing travel SIM alternatives to roaming, with a significant proportion of respondents in various countries, such as China (71%), India (72%), and the UAE (65%), expressing intent to continue using travel SIMs, eSIM plans, or other roaming alternatives in the future.
Kaleido conducted its annual travel and roaming survey targeting leisure and business travellers across 20 global markets in June 2023, covering: Australia, Brazil, Canada, China, Denmark, France, Germany, Hong Kong, India, Italy, Korea, Rep., Malaysia, Netherlands, Norway, Singapore, Spain, Sweden, UAE, UK and the US.
For more survey findings or to request a demo, please get in touch.
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