New research highlights the transformative potential of eSIMs in the mobile industry, particularly their impact on consumers. Analyst firm CCS Insight believes the shift from physical SIMs to eSIMs will empower customers to manage their subscriptions more effectively.
Currently, eSIMs make up a small segment of the global mobile market, with only 150 million users compared to 8.9 billion cellular subscriptions. However, this is expected to change significantly by the end of the decade.
eSIMs Set to Enhance User Experience
CCS Insight predicts that the adoption of eSIMs will increase dramatically, with the percentage of phones supporting eSIMs more than doubling from 27% in 2023 to 56% by 2028. North America is leading the adoption curve, driven by Apple’s decision to ship eSIM-only devices starting with the iPhone 14 in September 2022.
There are currently over 200 eSIM-enabled devices globally and around 800 supporting operators. CCS Insight’s Director of Consumer and Connectivity, Kester Mann, noted the benefits of eSIMs, including enhanced digital customer journeys, attraction of new customers, and environmental benefits from eliminating physical SIM cards.
“We found a shift in sentiment among operators to be more accepting of the technology and increasingly optimistic about new opportunities it can enable,” Mann commented. The report also highlighted the roaming benefits of eSIMs, allowing customers to sign up for more cost-effective plans before traveling.
However, the revolution faces challenges, particularly in education. CCS Insight found that only 40% of over 5,000 participants from the UK, US, Germany, Spain, and Australia were aware of eSIM technology.