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 that the transition from physical SIM to eSIM will enable customers to interact differently with their network providers, giving them more power to manage their subscriptions.
The study claims eSIMs currently constitute a minor segment of the global mobile market, with only 150 million users worldwide compared with 8.9 billion cellular subscriptions, but all of that is projected to change by the end of the decade.
eSIMs are set to give more power to customers
In recognition that the digital-only network connections will become more popular, CCS Insight predicts that the number of phones that support eSIMs 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 started with the iPhone 14 range in September 2022.
Globally, there are more than 200 eSIM-enabled devices and around 800 supporting operators.
Citing enhanced digital customer journeys, the attraction of new customers and the associated environmental benefits of removing that tiny piece of plastic from your phone, CCS Insight Director of Consumer and Connectivity Kester Mann commented:
“We found a shift in sentiment among operators to be more accepting of the technology and increasingly optimistic about new opportunities it can enable.”
The report also recognized the roaming benefits of eSIMs, allowing customers to sign up for more cost-effective plans before their travels.
However, the revolution isn’t without its limitations, and clearly education is lacking in the area. CCS Insight found that only four in 10 of the more than 5,000 participants from the UK, the US, Germany, Spain and Australia had heard of an eSIM.
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