Pandemic pushes eSIM growth

esim pandemic

We all know what SIMs are, Subscriber Identity Modules, or those tiny microchips that keep getting smaller and smaller. SIMS work by receiving a signal from cellphone providers, and then inject that signal into the phone. Enabling users to make calls, send texts, and subscribe to Value Added Services.

As technology is in a constant state of change, and in light of the rapid tech advancements that have taken place amid the pandemic, a new concept of SIM cards is emerging and growing. Enter the eSIM, or embedded SIM, where the SIM card is no longer there and is just integrated into your cellphone, eliminating so many issues, and opening new doors.

According to the “eSIM Market Forecast to 2027 – COVID-19 Impact and Global Analysis by Application; Vertical”  the market has huge potential. It was valued at US$ 392.7 in 2019, and is projected to reach US $ 2,282.3 million by 2027, achieving jaw dropping growth at a CAGR of 27.4% from 2020 to 2027.

While these numbers are big indeed, eSIM growth will open up new capabilities, and the numbers back this up. Given the nature of the technology and having a SIM card free phone, this eliminates the burden of changing physical SIMS (no, not just swapping in SIMs, but actually finding, selecting, and agreeing on a new operator) whenever you want to change providers. Now, this is extremely important as it levels out the playing field for MVNOs to put their best foot forward. A critical success tactic is for vendors to fully focus and optimize their Self Care portals.

The pandemic has created a widespread acceptance from customers to have an eSIM, as they realize the benefits. The first six months of the pandemic witnessed an attempt to distribute as much physical SIMs as possible as people became frantic about SIM cards running out or certain networks going down.

With the current online shift catalyzed by COVID-19, it has become much harder to predict demand. We still do not know when the travel market will pick up again and, that’s where eSIMs will play a big role as everybody is going to want a new sim card when traveling.

MVNOs are improving and modernizing their platforms to accommodate the new advancements.

Although eSIMs are very complex and have high entry costs and high barrier costs, this is definitely the way the market is going. The mass shift from SIM to eSIM still has not happened right now, however with the current situation and the accelerated digital transformation brought forward, eSIM growth and integration is bound to become an integral part of our connected lives.