New research has shed some light on the transformative potential of eSIMs in the mobile industry, especially when it comes to the impact on consumers.
Analyst firm CCS Insight believes that the transition from physical SIM to eSIM will allow customers to interact with their network providers in a different way, giving them more power to manage their subscriptions.
The study claims that eSIMs currently make up a small segment of the global mobile market, with just 150 million users worldwide, compared to 8.9 billion mobile subscriptions, but this is all expected to change by the end of the decade.
eSIMs will give more power to customers
Recognizing that digital-only network connections will become more popular, CCS Insight predicts that the number of phones supporting 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 provide only eSIM devices, which started in September 2022 with the iPhone 14 series.
There are more than 200 eSIM-enabled devices and approximately 800 supporting operators worldwide.
Citing improved digital customer journeys, attracting new customers and the associated environmental benefits of removing that little piece of plastic from your phone, CCS Insight Director of Consumer and Connectivity Kester Mann noted:
“We noticed a shift in sentiment among operators: they are increasingly accepting the technology and are increasingly optimistic about the new opportunities it can offer.”
The report also recognized the roaming benefits of eSIMs, allowing customers to sign up for more cost-effective plans before their trip.
However, the revolution is not without limitations, and education is clearly lacking in this area. CCS Insight found that only four in ten of more than 5,000 participants from the UK, US, Germany, Spain and Australia had heard of an eSIM.