An eSIM, or embedded SIM, represents a major evolution from the traditional SIM card by integrating the subscriber identity module directly into a device’s hardware rather than relying on a removable plastic card.
The global market for eSIM-enabled devices is on a transformative trajectory, with ABI Research forecasting shipments to surpass 633 million units in 2026.
The market is driven chiefly by accelerating smartphone adoption in China and advancements surrounding the SGP.32 specification for IoT applications.
Software eSIM Market Development
Today's eSIM technology is fundamentally altering how consumer electronics and IoT devices connect and provision themselves to mobile networks.
Unlike removable SIM cards, eSIMs offer remote provisioning, better security, reduced device size, and rapid network switching, empowering both consumer mobility and large-scale industrial deployments.
After a period of subdued growth during the 2022-2023 smartphone downturn, eSIM adoption is now fueling an upturn, particularly amid surging device shipments and infrastructure innovations in the Asia-Pacific region.
Noteworthy eSIM Market Statistics
- ABI Research forecasts that 403 million consumer devices and 140 million IoT eSIM-enabled devices will ship in 2025 alone.
- Smartphones are the dominant application, accounting for 74 percent of all eSIM device shipments in 2025, reflecting a rapid post-pandemic rebound.
- While North America and Western Europe led early eSIM adoption, China is now projected to unlock massive growth.
- China’s regulatory green light for domestic eSIM use will enable the Asia-Pacific to sustain the world’s highest CAGR for eSIM smartphones.
- Annual shipments of eSIM-enabled smartphones in China are expected to rise from 17 million in 2026 to 125 million by 2030.
- For IoT, the arrival of the SGP.32 specification promises a step change, especially for industries like asset tracking, smart metering, and automotive.
- Profile downloads for SGP.32 are expected to reach 2.89 million in 2025 and soar to 194 million by 2029 as deployment volumes escalate.
- Most global smartphone manufacturers are integrating eSIM technology, with dual-SIM flexibility becoming a standard feature for premium and mid-tier models.
- SGP.32 and its flexible Remote SIM Provisioning (RSP) model address pain points in legacy IoT solutions.
- In the automotive industry, SGP.32 profile downloads are projected to overtake legacy SGP.02 transactions by 2028, supporting next-generation connected car services in both consumer and fleet settings.
- The consumer sector remains the volume leader through 2030, but IoT verticals represent opportunities for solutions vendors and integrators.
Key Trends and Market Growth Opportunities
With eSIM adoption finally taking off in China, the global addressable market for eSIM smartphones is now truly complete. This will catalyze a wave of device upgrades and enable new services and mobile experiences for a market of several hundred million.
The ratification and commercialization of the SGP.32 standard unlock streamlined, secure, and future-proof deployments for billions of constrained devices in energy, industrial, and mobility sectors. As deployment moves from pilot to mass production, vendors with early leadership positions will reap outsized returns.
As local Chinese OEMs boost eSIM penetration in their product lines, innovation and price competition will accelerate, benefiting both consumers and enterprise buyers globally.
While smartphones drive the largest shipments, the most dynamic growth areas are in IoT, where remote provisioning, zero-touch onboarding, and scalability concerns are priority requirements for new digital transformation efforts.
Outlook for Software eSIM Applications Growth
The latest market research findings are compelling. The eSIM market is poised for robust growth, with emerging markets and IoT verticals taking the lead through 2030.
Executives in the business technology sector should closely monitor China’s eSIM rollout, invest in solutions that anticipate SGP.32’s flexibility, and prepare for a rapidly diversifying vendor landscape.
"Delays to SGP.32 ratification have inhibited expected new IoT deployments, but with over 70 percent of smartphones still lacking eSIM support, the continued march towards full market penetration leaves smartphones standing as the largest eSIM growth area by volume through 2030," said Georgia Cooke, research analyst at ABI Research.
That being said, I believe the shift to remote, digitally provisioned mobile devices is no longer just an option; it is becoming a baseline expectation in connected global commerce.