eSIM-enabled IoT devices to grow 780% over next three years
The global number of IoT connections using eSIM technology will reach 195 million by 2026.
A study performed by Juniper Research, the foremost expert in analysing the IoT market, has shown the number of IoT connections using eSIM technology is set to drastically increase from just 22 million in 2023.
The study's market revenue forecast data covers eight regions and 60 countries.
Juniper Research has identified the growing adoption of the variant 'eIM' (eSIM IoT Manager) amongst the eSIM platforms, which will drive growth over the next three years.
eIM is a standardised eSIM provisioning tool allowing large-scale deployment and management of eSIM-enabled IoT devices.
The study also investigated eSIM provisioning solutions, such as Subscription Management Secure Routing (SMSR), and discovered how they had hindered the growth of eSIMs in the IoT market. This is due to how these incumbent solutions limit the number of devices that can be provisioned and managed through a single user interface.
eIM solutions, however, will reduce the cost of deployments by enabling multiple connections to be deployed at the same time, increasing the value proposition of eSIM use cases requiring mass deployments.
According to the research, only 2% of all eSIMs in use will be attributable to the IoT industry in 2023. However, by 2026, 6% of global eSIMs will be attributable to the IoT sector.
The research attributed this to the projected increased adoption of eIM tools. The research also predicted that the growth of eSIM IoT connections would be greater over the next three years than the consumer sector, which includes smartphones.
The research anticipates that eSIM-enabled IoT devices in service will grow dramatically over the next three years by 780%.
Two key sectors that were identified by the research are set to benefit the most - logistics and oil and gas exploration.
The study suggests that 75% of global usage of eSIMs will be attributed to these two markets.
This is due to these industries' reliance on LPWA (Low-power, Wide-area) business models that necessitate the use of mass deployment processes.
The research also looked at the trends and forecasts of the regular eSIM market and had several findings.
Juniper Research is forecasting that the value of the global eSIM market will increase by almost 249%, growing from $4.7 billion in 2023 to $16.3 billion by 2027.
This increase is likely due to smartphone manufacturers pivoting to this device development model, including major brands such as Apple, Samsung and Google.