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eSIM Market value skyrockets as Apple Innovation Disrupts Smartphone Sector

A new Juniper Research study has found the value of the global eSIM market will increase from US$4.7 billion in 2023, to $16.3 billion by 2027 thanks, in no small part, to Apple.

The research group says the market will increase by 249% driven by the adoption of eSIM-enabled consumer devices such as Apple’s release of the eSIM-only iPhone 14. This is triggering accelerated operator support. eSIMs are embedded within devices, enabling devices and sensors to seamlessly switch between network operator profiles.

Apple introduced its eSIM technology with the  iPhone XS and since then all iPhones launched have been compatible with eSIM. The tech giant introduced eSIM only smartphones in the U.S. with the iPhone 14 line-p. 

Juniper Research predicts that Apple will expand deployment of eSIM-only devices to Europe during 2023, with eSIM technology key to minimizing the time-consuming establishment of roaming agreements within the fragmented European telecommunications market.

The research group found the total number of smartphones leveraging eSIM connectivity will increase from 986 million in 2023, to 3.5 billion by 2027, with manufacturers such as Google and Samsung developing an equivalent eSIM-only Android device in order to compete with Appleand maintain their global market positioning.

“Despite operator concerns regarding the disruptive impact of eSIMs on existing business models, growing support from smartphone manufacturers will place additional pressure on operators,” says research author Scarlett Woodford. “ In response, service providers must support eSIM connectivity to avoid subscriber attrition as technology awareness increases.”

Juniper Research also found the total number of eSIM-connected smartphones in China will increase from 103 million in 2023, to 385 million by 2027, assuming country-specific standards are implemented and allowing eSIM use in smartphones.

The research group says noted current regulations prevent Chinese-based device manufacturers from selling to their home market, limiting investment and innovation. 




Article provided with permission from AppleWorld.Today
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