eSIMs with IoT Connections to Grow 43% Annually by 2030

A recent survey by Counterpoint Research predicts that by 2030, there will be a huge increase in the use of eSIMs for connecting IoT devices. They expect a rapid annual growth rate of 43%, reaching around 2.2 billion connections. By then, more than double the number of connections will be using eSIM or iSIM technology.

The researchers noted that while eSIM adoption has been strong in various industries, it hasn’t caught on as quickly in the consumer market due to certain restrictions. As of the end of 2023, there were fewer than 200 million eSIM connections in IoT devices despite the potential for growth.

Associate Director Mohit Agrawal mentioned that China, which is the largest IoT market globally, has low eSIM usage due to past regulations and the prevalence of devices that don’t support eSIM technology. This keeps the global eSIM penetration below 10%.

In 2023, nearly half a billion devices capable of using eSIM were shipped worldwide. Over 350 operators globally now support eSIM, signaling increasing industry support. While consumer devices with eSIM showed the most growth, IoT and M2M devices remained stable as the industry awaited the implementation of new standards.

Senior Research Analyst Ankit Malhotra commented on the forecast, noting that new standards from the GSMA for IoT eSIM are expected to drive significant growth by enabling eSIM use in more devices. The industry anticipates a big push once test specifications are released. Automotive customers have been early adopters of eSIM, with enterprises slower to change connectivity providers due to limitations.