Juniper Research cites support of device makers like Apple and Google for the expected jump from 1.2 billion this year to 3.4 billion in 2025.
A new Juniper Research study, eSIMs: Sector Analysis, Emerging Opportunities & Market Forecasts 2021-2025, found that the number of eSIMs installed in connected devices will increase from 1.2 billion in 2021, to 3.4 billion in 2025; representing a growth of 180%.
eSIMs are embedded directly into devices to enable connectivity and can store multiple network operators’ profiles.
Consumer power
The research assessed eSIM adoption and demand in the consumer sector, industrial sector, and public sector, and predicts that the consumer sector will account for 94% of global eSIM installations by 2025.
It anticipates consumer device vendors, like Google and Apple, will adopt eSIM frameworks which will accelerate the growth of eSIMs in consumer devices ahead of the industrial and public sectors.
The research found that global eSIM deployments across all consumer verticals will increase by 170% over the next four years, with widespread adoption reliant on backing from network operators.
It urges device manufacturers to put pressure on operators to support eSIM frameworks and accelerate the market.
Fragmentation
It notes that fragmentation in the cellular IoT device market will require each vertical to adopt a combination of wireless technologies, hardware, and management tools.
In turn, it predicts that specialist vendors will emerge that provide eSIM form factors suited to industrial environments. The study identified three key industrial sectors: oil and gas; manufacturing and logistics.
It suggests that the development of rugged form factors will position vendors well to capitalise on the market, as eSIM installations in these verticals grow from 28 million units in 2021 to 116 million by 2025.
The research’s author Scarlett Woodford noted, “Ensuring convenience for the end user must remain the top priority for eSIM management platform providers. “To do so, they must provide a level of service comparable to that found with traditional SIM deployments.”