5G rollouts, eSIM-only phones and connected-car mandates are driving adoption, with opportunities in wearables, healthcare, industrial IoT, logistics and remote provisioning.
Embedded Sim Market Number Of Cellular Io T Connections By Connectio
Dublin, Aug. 20, 2026 (GLOBE NEWSWIRE) — The “Embedded SIM (eSIM) – Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)” has been added to ResearchAndMarkets.com’s offering.
Embedded SIM (eSIM) Market Shipments Forecast to Reach 2.12 Billion Units by 2031
The global embedded SIM (eSIM) market is projected to expand rapidly as 5G deployment, connected vehicle regulations, industrial digitalization and growing demand for always-connected consumer devices accelerate adoption. Shipment volume is expected to increase from 0.48 billion units in 2025 to 0.65 billion units in 2026 before reaching 2.12 billion units by 2031. This represents a compound annual growth rate of 26.67% from 2026 to 2031.
5G Networks Accelerate Global eSIM Adoption
The continued rollout of standalone 5G networks is strengthening demand for embedded SIM technology across smartphones, industrial gateways, connected vehicles and Internet of Things applications. Advanced 5G infrastructure supports remote provisioning, network slicing and seamless switching between network operators, enabling enterprises to manage large device fleets without physical SIM replacement.
China surpassed 1 billion 5G connections in 2024 and completed nationwide eSIM enablement in October 2025. Japan reached 98.4% population coverage in 2024 and is targeting 99% by 2030, while European household 5G coverage reached 94.3% in 2024. These developments provide a strong foundation for connected factories, smart homes, logistics platforms and smart-city systems.
Although 4G/LTE represented 52.11% of eSIM shipments in 2025, the 5G segment is forecast to grow at a 26.89% CAGR. Operators will continue supporting NB-IoT and LTE-M networks for lower-bandwidth applications, creating demand for multi-network eSIM chipsets capable of operating across public, private and dedicated network environments.
Automotive Regulations Support Embedded SIM Market Growth
Automotive and transportation applications are emerging as important sources of long-term eSIM demand. The UN-R155 cybersecurity regulation, mandatory for new vehicle types since July 2024, requires cyber-threat monitoring and secure over-the-air updates. These requirements favor tamper-resistant embedded connectivity that supports remote certificate management and software distribution.
Europe’s eCall requirements have also established cellular emergency connectivity as a standard vehicle capability. Automotive manufacturers and fleet operators are increasingly adopting soldered eSIM solutions to improve security, simplify international connectivity and reduce roaming costs. Similar regulatory frameworks in other regions could translate rising connected vehicle production into sustained eSIM shipment growth.
Smartphones Lead While Wearables Record Strong Expansion
Smartphones accounted for 60.29% of eSIM unit shipments in 2025, supported by the shift toward eSIM-only premium devices and wider operator availability. However, wearables are projected to grow at a 26.76% CAGR through 2031, making the category one of the fastest-expanding device segments.
Connected health monitors, cardiac devices, fall-detection products and fitness wearables increasingly depend on continuous cellular access to cloud-based platforms. Embedded SIM solutions support compact, sealed designs by reducing openings that can expose devices to moisture, dust or tampering. Advances in wafer-level chip-scale packaging and integrated SIM platforms are also lowering power consumption and extending battery life.
Tablets and laptops are benefiting from instant-connect data plans offered at the point of sale, while machine-to-machine modules are supporting smart meters, asset-tracking systems and industrial monitoring equipment. Growing adoption of remote healthcare, workforce digitization and connected infrastructure is expected to strengthen demand across these categories.
Provisioning Complexity Remains a Market Restraint
Despite strong growth prospects, fragmented provisioning specifications continue to create implementation challenges. Enterprises operating long-life industrial assets often need to support established SGP.02 systems alongside newer SGP.32 workflows. Maintaining multiple provisioning environments increases integration costs, extends certification cycles and can expand cybersecurity requirements.
Utilities, logistics providers and transportation organizations commonly operate connected assets for 15 years or longer, making immediate migration impractical. Dual-stack operations may therefore continue through at least 2035, moderating near-term adoption of newer eSIM provisioning architectures.
Other market factors influencing growth include:
- The transition toward eSIM-only flagship smartphones
- Expanding private 5G and industrial IoT deployments
- Increasing demand for remote healthcare monitoring
- Limited consumer awareness outside premium handset categories
Regional Embedded SIM Market Outlook
North America held 39.39% of global eSIM shipment volume in 2025, supported by eSIM-only smartphones and enterprise IoT deployments in healthcare, logistics, energy and transportation. Established 5G infrastructure and extensive carrier marketing have also encouraged consumer adoption, including greater use of international travel eSIM services.
Asia-Pacific is forecast to be the fastest-growing regional market, recording a 27.36% CAGR through 2031. China’s nationwide eSIM rollout and large 5G subscriber base are enabling smartphone manufacturers to remove physical SIM trays and optimize device designs. India is also expanding eSIM availability for smartphones, smart meters and rural electrification initiatives, while Japan and South Korea continue deploying the technology in connected vehicles, payment wearables and smart factories.
Europe benefits from extensive 5G coverage and regulatory requirements affecting vehicle safety and connected-device cybersecurity. Adoption is also gaining momentum in the Middle East as operators introduce national eSIM platforms. Africa remains at an earlier stage, although pilot programs in South Africa and Nigeria are targeting enterprise fleets and internationally mobile users.
South America is showing increasing momentum, with operators across 14 countries offering eSIM services. The share of compatible smartphone connections is expected to rise substantially by 2030, supported by tourism, roaming demand, consumer education and the wider availability of lower-cost eSIM-enabled handsets.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rapid 5G Roll-Outs Accelerating eSIM Demand
4.2.2 Mandates for eCall and UN-R155 Driving Automotive Adoption
4.2.3 Apple-Led Smartphone OEM Shift to eSIM-Only Flagships
4.2.4 Telco OPEX Savings Via Remote SIM Provisioning
4.2.5 Government IoT Security Regulations Favouring Soldered SIMs
4.2.6 Emergence of GSMA SGP.32 Specification Unlocking Mass-Scale IoT Deployments
4.3 Market Restraints
4.3.1 Fragmented M2M Entitlement Specifications
4.3.2 Limited Consumer Awareness Outside Premium Handsets
4.3.3 Supply-Chain Trust Concerns (Tamper and Side-Channel Attacks)
4.3.4 Operator Lock-In Worries Among Enterprise IoT Buyers
4.4 Industry Value/Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Impact of Macroeconomic Factors on the Market
4.8 Porter’s Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitute Products
4.8.5 Intensity of Competitive Rivalry
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 Overall Market Estimates
5.1.1 Total Market Value
5.2 By Network Type
5.2.1 5G
5.2.2 4G/LTE
5.2.3 NB-IoT / LTE-M
5.3 By Device Type
5.3.1 Smartphones
5.3.2 Tablets and Laptops
5.3.3 Wearables
5.3.4 M2M/IoT Modules
5.4 By End-User Industry
5.4.1 Consumer Electronics
5.4.2 Automotive and Transportation
5.4.3 Industrial and Manufacturing
5.4.4 Logistics and Asset Tracking
5.4.5 Energy and Utilities
5.4.6 Healthcare and Wearables
5.5 By Form Factor
5.5.1 MFF2
5.5.2 Wafer-Level CSP
5.5.3 Plug-In eSIM
5.6 By Provisioning Specification
5.6.1 SGP.02 (M2M)
5.6.2 SGP.22 (Consumer)
5.6.3 SGP.32 (IoT)
5.7 By Geography
5.7.1 North America
5.7.1.1 United States
5.7.1.2 Canada
5.7.1.3 Mexico
5.7.2 South America
5.7.2.1 Brazil
5.7.2.2 Argentina
5.7.2.3 Rest of South America
5.7.3 Europe
5.7.3.1 United Kingdom
5.7.3.2 Germany
5.7.3.3 France
5.7.3.4 Italy
5.7.3.5 Spain
5.7.3.6 Rest of Europe
5.7.4 Asia-Pacific
5.7.4.1 China
5.7.4.2 Japan
5.7.4.3 South Korea
5.7.4.4 India
5.7.4.5 Rest of Asia-Pacific
5.7.5 Middle East
5.7.5.1 Saudi Arabia
5.7.5.2 United Arab Emirates
5.7.5.3 Israel
5.7.5.4 Rest of Middle East
5.7.6 Africa
5.7.6.1 South Africa
5.7.6.2 Nigeria
5.7.6.3 Rest of Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, and Recent Developments)
6.4.1 Thales Group
6.4.2 Giesecke + Devrient GmbH
6.4.3 STMicroelectronics N.V.
6.4.4 Infineon Technologies AG
6.4.5 IDEMIA Group S.A.S
6.4.6 Valid S.A.
6.4.7 Workz Group
6.4.8 Arm Ltd. / Kigen
6.4.9 Truphone Ltd.
6.4.10 GigSky Inc.
6.4.11 Apple Inc.
6.4.12 Samsung Electronics Co. Ltd.
6.4.13 Qualcomm Technologies Inc.
6.4.14 NXP Semiconductors N.V.
6.4.15 Deutsche Telekom AG
6.4.16 Vodafone Group Plc
6.4.17 Sierra Wireless Inc. (Semtech)
6.4.18 u-blox Holding AG
6.4.19 Telit Cinterion
6.4.20 Nordic Semiconductor ASA
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-Space and Unmet-Need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/tj89s3
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- Embedded Sim Market Number Of Cellular Io T Connections By Connectio
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