Consumer adoption of eSIM technology continues to grow rapidly, according to exclusive market monitoring figures released today by Trusted Connectivity Alliance (TCA). The latest data shows that consumer eSIM profile downloads* more than doubled in 2023, increasing 109% year-on-year.
Growth was predominantly driven by accelerating adoption within the North American market, where the wide availability and demand for eSIM-only smartphone models has seen leading mobile operators transition to ‘digital-first’ strategies. Adoption rates also doubled across Asia and Western Europe.
Future growth in consumer eSIM adoption is expected to be boosted by the launch of eSIM-only smartphones across more regions, coupled with the broader availability of eSIM-enabled devices. Rebounding levels of international travel —anticipated to surpass pre-pandemic levels in 2024—also stand to support increased uptake as consumers turn to eSIM for greater choice and convenience when roaming.
The overall upswing in consumer adoption was supported by significant ongoing investment in eSIM Subscription Manager (SM) platforms, which enable the remote provisioning and lifecycle management of eSIMs. The number of deployed consumer eSIM SM platforms rose by 25% in 2023 as mobile operators continued to bolster their digital capabilities.
“For technologies to be widely adopted, they must be safe and reliable, provide a great experience and, most importantly, deliver real value,” comments Bertrand Moussel, Chair of the TCA Board. “Our latest data makes it clear that wider eSIM availability is translating into strong adoption, with consumers across the world now realising the benefits of flexible and seamless connectivity.”
TCA provides exclusive statistical insight into the global SIM and eSIM ecosystem based on members’ market data, offering authoritative insight which is trusted by stakeholders across the mobile industry. Other key industry trends in 2023 included:
Strong Foundation for Growing eSIM Adoption Across Automotive and IoT Verticals
M2M eSIM adoption—predominantly focused across automotive use-cases—was also supported by a 12% increase in the deployment of M2M eSIM SM platforms.
Looking ahead, global standardisation efforts such as GSMA’s eSIM for IoT Specifications (SGP.31 and SGP.32) will play an important role in promoting increased eSIM adoption across IoT verticals. The specifications introduce new, dedicated features to meet specific IoT requirements, simplifying deployments at massive scale and addressing the challenges associated with remotely provisioning and managing constrained IoT devices.
eSIM Volumes Resilient Despite Significant Economic Uncertainty
TCA is also the only organisation to offer a quantitative global view of eSIM shipment volumes, providing both actual and forecast data. eSIM shipments collectively reported by TCA members decreased marginally by 2% to 374 million units, with TCA estimating that the total available market for eSIM was 390 million units in 2023.
Notably, volumes remained stable in the face of strong macro-economic headwinds. Global inflationary pressures and the ‘cost-of-living’ crisis reduced overall consumer demand for smartphones and mobile subscriptions in 2023, though easing inflation towards the end of the year points towards a more positive outlook for 2024. The ongoing impact of the global chip shortage—which saw operators overstock in 2022 to mitigate potential supply chain pressures—also tempered demand but is anticipated to rebalance towards normal levels in 2024.
Digitalisation of the SIM Market Accelerates
The market for ‘traditional’ SIM was similarly shaped by broader macro-economic factors, with TCA estimating the total available market for SIM (excluding eSIM) reduced by 7% to 3.8 billion units in 2023. There was also a clear trend signalling the increasing digitalisation of the overall SIM market amid accelerating eSIM adoption in key regions such as North America.
Moussel adds: “As the evolution of the SIM ecosystem gathers pace, TCA is committed to bringing together stakeholders to address emerging opportunities and challenges. By collaborating on initiatives that increase interoperability, promote trust and support sustainable innovation across the secure connectivity ecosystem, the full promise of the global digital economy can be realised.”
A breakdown of data collected through TCA’s member monitoring process is available via an annual subscription. For more information, please contact info@trustedconnectivityalliance.org.
For an ‘at-a-glance’ overview of the 2023 market data, view TCA’s SIM and eSIM Industry Insights infographic.
– ENDS –
For further TCA media information, please contact Yash Raveendra – Tel: +44(0)113 3501922 or email: yash@iseepr.co.uk
Notes to Editors
* eSIM profile downloads, also known as eSIM profile transactions, refers to the number of times a mobile operator profile was downloaded.
About Trusted Connectivity Alliance
Trusted Connectivity Alliance (TCA) is a global industry association working to enable trust in a connected future.
The organisation evolved from the SIMalliance, reflecting the continued expansion of the global SIM industry and the need for broader collaboration. Its members are leading providers of secure connectivity solutions for consumer, IoT and M2M devices. This spans Tamper Resistant Element (TRE) technologies including SIM, eSIM, integrated SIM, embedded Secure Element (eSE) and integrated Secure Element (iSE), as well as hardware and software provisioning and other personalisation services.
TCA members are: Card Centric, COMPRION, Eastcompeace, Giesecke+Devrient, IDEMIA, Kigen, Linxens, Monty Mobile, NXP Semiconductors, Oasis Smart SIM, STMicroelectronics, Thales, Valid, Workz Group, Wuhan Tianyu and XH Smart Card.
www.trustedconnectivityalliance.org | News | Blog | X | LinkedIn | YouTube
Trusted Connectivity Alliance (TCA) has published new guidance to enable Java Card applet developers to maximise interoperability and security across eSIM deployments.
‘Stepping Stones for Java Card Applet Developers’ is the latest release in TCA’s acclaimed ‘Stepping Stones’ series, which provides recommendations and guidelines to support the development and deployment of SIM-based technologies.
TCA’s new guidance addresses emerging interoperability considerations presented by the growing adoption of eSIM technology. It provides an analysis of key recent Java Card technology updates, along with the impact of broader ecosystem developments from 3GPP, ETSI and GSMA. A series of best practices and security recommendations are also detailed to maximise interoperability and ensure applet assets are sufficiently protected. For developers seeking practical guidance, recommendations are collated into a comprehensive ‘interoperability checklist’ to help address common challenges and deliver high-quality applets.
Amedeo Veneroso, Chair of the TCA Interoperability Working Group, comments: “To ensure seamless integration and simplify eSIM deployments across the highly complex mobile ecosystem, it is imperative that applets are compatible and secure. By addressing the unique considerations presented by Java Card technology, TCA’s latest guidance will support developers – particularly those who are new to the eSIM market – in delivering robust and interoperable solutions that enable the delivery of powerful eSIM-based value-added services.”
Bertrand Moussel, Chair of the TCA Board, adds: “TCA’s various Stepping Stones documents have played an important role in guiding industry stakeholders as part of our decades-long commitment to identifying and promoting the need for strong interoperability. This latest guidance from TCA marks another important milestone in our mission to promote trust and simplicity across the secure connectivity ecosystem.”
Other key interoperability initiatives from TCA include the release of the new, free-to-use TCALoader tool, which enables mobile operators and application developers to download, install and manage applications on the UICC / eUICC to test interoperability across different deployments.
TCA has also reported growing industry momentum for its eSIM Interoperability Testing Service – delivered by COMPRION. The service enables mobile operators, mobile virtual network operators (MVNOs), IoT connectivity providers and eSIM profile developers to test how eSIM profiles interact with an extensive range of consumer eSIM devices such as smartphones, wearables, tablets and laptops. This helps to proactively identify and address individual interoperability issues prior to deployment.
‘Stepping Stones for Java Card Applet Developers’ is available to download here. For further information on the eSIM Interoperability Service and TCALoader, contact info@trustedconnectivityalliance.org and visit the TCA and COMPRION websites.
– ENDS –
For further TCA media information, please contact Yash Raveendra – Tel: +44(0)113 3501922 or email: yash@iseepr.co.uk
About Trusted Connectivity Alliance
Trusted Connectivity Alliance (TCA) is a global industry association working to enable trust in a connected future.
The organisation evolved from the SIMalliance, reflecting the continued expansion of the global SIM industry and the need for broader collaboration. Its members are leading providers of secure connectivity solutions for consumer, IoT and M2M devices. This spans Tamper Resistant Element (TRE) technologies including SIM, eSIM, integrated SIM, embedded Secure Element (eSE) and integrated Secure Element (iSE), as well as hardware and software provisioning and other personalisation services.
TCA members are: Card Centric, COMPRION, Eastcompeace, Giesecke+Devrient, IDEMIA, Kigen, Linxens, Monty Mobile, NXP Semiconductors, Oasis Smart SIM, STMicroelectronics, Thales, Valid, Workz Group, Wuhan Tianyu and XH Smart Card.
www.trustedconnectivityalliance.org | News | Blog | X | LinkedIn | YouTube
As consumer awareness of eSIM grows, more mobile operators, device manufacturers, service providers, operating system developers and global industry stakeholders want to understand how they can harness the technology’s potential and embrace its unique capabilities.
Download our eBook for insight into:
- What is an eSIM and what are the benefits?
- How to unlock its potential across the consumer, enterprise and M2M and IoT markets.
- The importance of accelerating eSIM adoption through standardisation.
- Why advancing eSIM technology can further promote interoperability, expand use-cases, and more.
Please can you tell us a bit about Workz?
As a global leader in mobile subscriber solutions, Workz enables the secure and fast deployment of smart devices and their data. Since 1997, it has managed over 14 billion secure connections in more than 70 countries, all without a single data breach. As well as being ISO 9001, 14001 and 27001 certified, it is one of only five providers in the world to be accredited by the GSMA to manage the complete eSIM lifecycle across both the consumer and M2M markets. Workz is also the world’s largest manufacturer of telecom (SIM and prepaid) cards.
Why did Workz join TCA?
Workz joined TCA to play an active role in developing a secure, interoperable mobile connectivity ecosystem while benefiting from being part of a forum to stay abreast of key industry news.
What do you think are the key issues facing players in the IoT space and are there any specific roles for specific organization types e.g. MNOs, manufacturers, vendors, standards bodies?
One of the key issues the sector faces today is how to accommodate the complexity and cost of M2M eSIM solutions, which previously have stunted growth opportunities meaning OEMs have been slow to adopt. This fragmentation meant that in the consumer market only leading OEMs have previously embraced eSIM, reinforcing its reputation that the technology is only available to high-value players in the sector.
However, new standards around interoperability, security and functionality will improve this, giving the sector the confidence it needs to advance eSIM. It is important for the sector as a whole to progress with these standards to create a unified approach to eSIM interoperability.
What are the key industry trends and challenges right now?
One of the biggest trends the connectivity ecosystem is witnessing is the steady digital-first service growth. This is particularly true with eSIM, as mobile operators increasingly turn to the tech to support more seamless, simplified device registration and payment experiences.
Another trend driving the mobile-device proliferation across the consumer and enterprise sectors is 5G, which also presents a significant opportunity for eSIM solutions with the recommended 5G SIM.
How do you think the industry is set to evolve in the future and why will industry collaboration be important?
Achieving interoperability is essential for the industry to reach its full potential given the opportunities such as growing IoT use cases across an expanding set of industry verticals e.g. health, utilities, auto etc. This is why bodies such as TCA are an essential component, supporting collaboration and providing a dedicated forum for players to work together to develop specifications and provide the technical guidance to build confidence for the mobile ecosystem.
Claus Dietze, Chair of the TCA Board
The ability of eSIM technology to deliver advanced security, seamless and flexible connectivity, and full end-to-end digitalisation – along with myriad other benefits such as greener supply chains – has long promised to transform the connected ecosystem.
Trusted Connectivity Alliance (TCA) has been tracking the development of the eSIM market since its nascent phase. The latest figures collectively reported by TCA members showed that eSIM shipment volumes increased 9% year-on-year to reach 337 million units in 2021.
It is the significant increase in utilisation, however, that suggests we are now entering a new era of eSIM. TCA reports that eSIM profile transactions – which refers to the number of times a mobile operator profile was downloaded – increased by 54% in 2021. This surge in adoption was enabled by a well-established global infrastructure that is now being widely and increasingly utilised by all major Tier 1 and Tier 2 operators.
And with TCA forecasting that the total available market for eSIM will see sustained double-digit growth in 2022, understanding the key factors driving momentum – including increased uptake across IoT use-cases, rising consumer awareness and the accelerating rollout of 5G networks – is essential to ensuring the market expands.
Realising the potential of the IoT through eSIM
A rapidly growing array of devices, low-cost sensors and systems are combining to form a vast IoT ecosystem. These devices, coupled with the transformative impact of big data, are driving digital transformation across nearly all industry verticals. Sectors such as automotive, utilities, healthcare, agriculture, and manufacturing are now harnessing the power of the IoT to enhance services, transform operations and maximise efficiencies.
However, the rapid expansion of the IoT ecosystem must be sustainable. Juniper Research predicts there will be 83 billion connected devices by 2024, so it is crucial that the industry can overcome the fragmentation, vulnerabilities and complexity that have historically hampered some IoT deployments.
With cellular connectivity increasing utilised to deliver the globally reliable coverage required by IoT use-cases, eSIM technology delivers the additional benefits of simple and resilient remote activation and management, as well as robust, dynamic security for the devices themselves and the vast quantities of sensitive data they communicate.
These capabilities are driving demand. Market data shows eSIM shipment volumes in 2021 were driven by surging adoption across the automotive sector and various IoT verticals, with TCA members reporting a 38% increase in M2M eSIM shipments.
Yet as IoT use-cases expand, the industry must continue to prioritise initiatives that enhance interoperability and trust. This includes ongoing work to support the consistent remote loading of subscriptions onto eSIMs across deployed devices (regardless of the SIM vendor), optimising the eSIM to meet specific IoT requirements such as network or user interface constrained devices, and positioning the eSIM as a hardware Root of Trust for the protection of IoT data, both at rest and in transit to the IoT cloud backend.
Growing adoption signals growing consumer awareness
TCA’s market data also showed sustained growth across the consumer eSIM segment, despite the impact of economic sanctions and broader geopolitical trends on the global smartphone market, as well as the delay of new device launches and the reduction of shipped units due to the widely publicised worldwide chip shortage.
Despite these headwinds, the number of eSIM-enabled smartphones and consumer devices are set for continued growth. But given the fact that consumer awareness has previously been a significant challenge – with GSMA reporting in 2021 that only 20% of consumers were aware of eSIM technology – the continued development of the market relies on increased consumer education and engagement.
The 54% increase in eSIM profile activations reported by TCA clearly demonstrates that awareness is building. The capabilities of eSIM technology support a digital-first consumer experience, enabling operators to simplify customer onboarding and activation, leverage digital distribution channels to communicate personalised offers and rewards, and allow customers to easily link together different devices and users under a single subscription. This is transforming the customer relationship, and operators are increasingly taking an “eSIM first” approach as a competitive point of difference to attract and retain subscribers.
5G presents new opportunities for eSIM
Looking ahead, the benefits of eSIM technology look set to be amplified by the accelerating rollout of 5G networks.
The ‘Recommended 5G SIM’ – which includes eSIM – defines the optimum technical capabilities that promote the highest levels of security, privacy, and functionality in 5G networks to maximise operator investments and support emerging 5G use-cases. TCA reported substantial increases in 5G SIM shipments in 2021, building on advances made in 2020, which marked the first year of widespread 5G SIM deployments.
This is creating new opportunities and benefits. For example, 5G private networks are increasingly being used as an alternative to public networks or Wi-Fi in settings such as campuses and industrial districts. This is creating an opportunity for operators to dedicate part of the 5G public network to address market demand, and the 5G eSIM as recommended by TCA promises enhanced security and optimised performance for these deployments.
An industry effort
As we enter a new era for eSIM technology, promoting secure, scalable and interoperable eSIM deployments that meet the unique requirements of emerging use-cases remains an industry priority. This will require continued close collaboration with industry stakeholders across the connected ecosystem to support trusted connectivity.
A breakdown of data collected through TCA’s member monitoring process is available via an annual subscription. For more information, please contact info@trustedconnectivityalliance.org.
For further insights, watch TCA’s webinar exploring key trends across the eSIM and 5G SIM market and download the TCA’s Industry Insights infographic.