Counterpoint’s prediction of the supply of about 14 billion devices equipped with eSIM between 2021 and 2030
According to this report, in 2021, more than 350 million devices with hardware eSIM capability in various categories such as phones Smartphones, smartwatches, tablets, IoT modules and connected cars have been launched, and according to Counterpoint’s forecast, in the next five years, eUICC SIM cards (a type of hardware-based eSIM) will remain the main form factor of this technology market, and more than half They will have the volume of supply. According to the experts of this institute, this year we have seen the introduction of the iUICC form factor (known as iSIM), which is actually a SIM card that is integrated with a chip and provides special benefits to manufacturers and users.
Neil Shah, vice president of research at Counterpoint, said, “The MFF2/WLCSP physical form factor of the soldered eSIM chip, even with the growth of alternative implementation methods such as software SIM and nuSIM,” says Neil Shah, vice president of research at Counterpoint. , has been the current standard for the past decade. However, the iSIM form factor (iUICC) will see the fastest growth in the future, as industry players agree on its use, and by the end of this year, they will provide nationwide support for SIM card activation and management in this way. “
In the meantime, the first iSIM adoption process will emerge in Internet of Things applications; Where the main players of advanced IoT chips and modules such as Sequans, Telit, Quectel and Sony Semi (Altair) will be present with the participation of leading manufacturers such as Kigen and G+D. Other key players in this sector include Qualcomm, Redtea Mobile, IDEMIA, Truphone, Thales, Apple , Samsung and Nokia pointed out. According to Counterpoint’s forecast, by 2027, iSIM will be the main form of SIM card, and the supply of devices equipped with this technology will reach 7 billion units between 2021 and 2030.
From Ankit Malhotra’s point of view ), Counterpoint analyst, smartphones will lead the supply of eSIM devices in the next five years. According to him, “Meanwhile, the expected supply volume of iPhones that only use eSIM should serve as a turning point for the industry and put other manufacturers on the fast track to adopting this technology.” As earlier this year, companies such as Thales, Vodafone and Qualcomm have successfully demonstrated the functionality of iSIM in a smartphone”. Now they help other groups of consumer products such as smart watches, laptops and tablets in this way. On the other hand, cellular connectivity in smart watches is constantly expanding, and this has led to an increase in the penetration rate of smart watches that support a SIM card.
Furthermore, the acceptance and use of so-called entitlement servers by real and physical operators (MNOs) around the world is well illustrated by the increasing number of smart watches and other mobile devices equipped with eSIM. This server allows mobile operators to provide certain services and features on end-user devices (e.g. wearables such as Apple Watch or Samsung smart watches) enable or disable. Additionally, the development of newer use cases such as remote work and education will also increase the need for cellular connectivity in client equipment, routers, laptops and tablets. Therefore, eSIM capabilities provide users and service providers with high-speed and efficient connectivity and active and integrated management.
Although smartphones will account for the majority of eSIM-based device usage in the future, the number of Internet of Things and machine-to-machine (IoT/M2M) devices equipped with eSIM in various application areas and technologies Multiple cellular will experience faster growth from NB-IoT to 4th and 5th generation technology. The activation rate of eSIM in cellular Internet of Things applications will remain high in the coming years, and by reducing the usual costs of production and logistics related to the delivery and activation of usual SIM cards, it will also save space and energy for users.
Besides these things, devices produced in emerging fields such as extended reality or XR abbreviated drone, Extended Realities, customer related equipment or CPE and personal computers, will experience the highest growth rate. Current uptake of cellular XR headsets is very low due to battery-related limitations, high bandwidth requirements, and poor user experience. But with the expansion of the fifth generation of communication technology and providing wider bandwidth, communication capabilities with very little delay, improving the form factor of devices, better battery efficiency and strengthening computing power, and developing programs and ecosystems to provide high-quality content alongside eSIM as one of the key technologies. For network connectivity, it will boost the adoption of 5G augmented reality devices after 2025. In addition, drones connected to 5G are another group of products that benefit from eSIM technology in various fields such as last-mile delivery, natural disaster management, search and rescue operations, education, construction and agriculture. will be used. Also, the approval of regulations related to beyond-visual-range drones in regions such as Europe will also increase the adoption of eSIMs. At the end of this report, Counterpoint added that smart cars and vehicles are one It is another area of interest for the growth of eSIM technology. Connected cars are now one of the main use cases for eSIMs, and a continuous connection experience for related applications, especially in the field of safety applications such as eCall, will be especially important in the future, along with the emergence of self-driving cars. As the recent collaborations between the two industry players, such as G+D and BMW, indicate the adoption of eSIM by leading manufacturers and their desire to use advanced features.