New research has shed some light on the transformative potential of eSIMs in the mobile industry, particularly when it comes to the impact on consumers.
Analyst firm CCS Insight believes the transition from physical SIM to eSIM will allow customers to interact differently with their network providers, giving them more power to manage their subscriptions.
The study states that eSIMs currently constitute a minor segment of the global mobile market, with only 150 million users worldwide compared to 8.9 billion cellular subscriptions, but that is all expected to change by the end of the decade.
eSIMs are ready to give more power to customers
Recognizing that digital-only network connections will become more popular, CCS Insight predicts that the number of eSIM-compatible phones will more than double, from 27% in 2023 to 56% in 2028.
North America leads the adoption curve, accounting for more than half of the 150 million eSIM customers. The report attributes this to Apple's initiative to ship eSIM-only devices, which began with the iPhone 14 range in September 2022.
Globally, there are more than 200 devices compatible with eSIM and around 800 operators that support it.
Citing the improvement of customers' digital journeys, the attraction of new customers and the environmental benefits associated with removing that small piece of plastic from your phone, CCS Insight Director of Consumer and Connectivity, Kester Mann, commented:
“We found a change in sentiment among operators, who are more accepting of the technology and increasingly optimistic about the new opportunities it can create.”
The report also recognized the roaming benefits of eSIMs, allowing customers to sign up for more cost-effective plans before travelling.
However, the revolution is not without limitations and education is clearly lacking in the area. CCS Insight found that only four in 10 of more than 5,000 participants from the UK, US, Germany, Spain and Australia had heard of an eSIM.
