28-Nov-2024
Travel eSIM Market Outlook 2024: Trends, Downfall & Future
Is the travel eSIIM market growing with time? eSIM technology is essential in enhancing travelers' travel experiences and business. However, travelers often need help finding eSIMs that offer global coverage. The best solution is to look for international eSIM packages that support multiple regions. People are shifting to embedded SIMs for their connectivity and roaming issues. Digital SIM offers connectivity, security, and convenience to the users. Travel eSIMs provide ease of downloading the local profiles on the smart devices to avoid roaming charges.
In this guide, I will help you look through the travel eSIM market, its downfall, the latest trends, and how it is becoming the future of connectivity.
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Travel eSIM Market Overview
eSIM is becoming more popular in the travel industry due to its exceptional connectivity and fast internet provision during travel. It is estimated that in 2021, the global eSIM travel market size was 1100 million USD, and in 2031, it will grow to 2799.8 million USD, at a CAGR of 9.79% from 2021 to 2031.
A SIM card is a chip that is programmed with the eSIM technology. Many service providers offer travel eSIMs for different countries. Embedded SIM allows the user to switch the networks according to their requirements. As per users' needs, the number of eSIM-supported devices is increasing. The adoption of travel eSIM is expanding due to its seamless connectivity among travelers. The situation predicts that the eSIM travel industry will reach a value of $3 billion.
The demand for eSIM-supported IoT devices is increasing with the secure mobile device administration. Many new entrants are joining the eSIM market with innovative business ideas.
Downfall of the Travel eSIM Market
The COVID-19 pandemic caused many industries to experience a downturn. The government enforced strict rules that affected the operating industries at that time. The same challenges also affected the global eSIM market, leading to a revenue decline.
The growth of the global eSIM market slows down due to the expenses of setting up and SIM maintenance. The high costs of embedded SIM make it harder to grow the market quickly.
Latest Trends in the eSIM Market
As eSIM is becoming widespread for traveling, smartphone manufacturers are moving toward designing eSIM-compatible devices. Consequently, eSIM will become an essential part of every smart device. Today, many iOS devices support eSIM technology with traditional SIM cards. Android device operators are adopting eSIM technology according to the user's needs.
eSIM Travel Market Segmentation
The travel eSIM is divided into type analysis and application analysis.
Type Analysis
According to the type and analysis travel embedded market is segmented into two
- Data Only
- Data, SMS, and Voice
Voice is considered the largest segment.
Application Analysis
The eSIM market is segmented into smartphones, laptops, smartwatches, and tablets based on application analysis.
Smartphones are the largest segment in terms of application.
Regional Insights of the eSIM Travel Market
The travel eSIM market is estimated to grow significantly in the Asia Pacific region. The presence of big companies like SK Telecom and China Mobile Communication Corporation Ltd drives the growth of the travel eSIM market in the region. The eSIM market is expected to grow faster due to people's demand for worldwide connectivity. According to the experts, the eSIM travel market will expand in the next eight years due to the increased investments of companies like Samsung, MediaTek, Huawei, and BBK Electronics.
Struggles of New Entrants in the eSIM Industry
Embedded SIM is initiated in two ways: through the eSIM app and the web-based eSIM by QR codes. Both are done through the provider. The user visits the provider app or the website to activate the eSIM.
However, both these methods come with several limitations and challenges.
- A high price competition in the market of travel eSIM discourages beginners who want to be part of eSIM technology.
- Building an audience will be difficult for new, unknown brands.
- The new startups require high investment to compete against established operators.
Advantages of Strategic Partnerships
In the eSIM travel market, many electronic SIM providers offer partnerships with other companies to stay competitive. Companies also invest in new product launches to expand their product range. There are companies in the eSIM market that support startups.
eSIM Card offers the best full-coverage eSIM data plans for 200+ countries. The company provides high-speed internet and cost-effective local, regional, and global data plans. eSIM Card supports startups in entering the eSIM industry. You can join eSIM Card as a partner, where they offer white-label services to start your business.
Top eSIM Travel Companies
Here is the list of top companies considered the best eSIM providers worldwide.
- Vodafone Group
- Sierra Wireless
- eSIM Card
- IDEMIA
- Giesecke+Devrient
- Samsung Electronics
- STMicroelectronics
Future of Travel eSIM Technology
For travelers, eSIM is the future of connectivity. Unlike the traditional SIM card, eSIM offers the best services, including flexible data plans, easy network switching, security, and primary number activation. Travel eSIM helps avoid roaming services and allows users to download different eSIM profiles.
According to Juniper Research, in April 2024, the telecommunications market expert found that the number of global travel eSIM users in 2024 will be 40 million, and grow to over 215 million in 2028. The study reveals that high roaming costs drive travelers to adopt travel eSIMs.
eSIM Market Report
This research report focuses on the eSIM market for travel. It includes detailed studies on various aspects, such as market segmentation, opportunities, industry developments, trends, growth, size, share, and potential challenges.
FAQs
How does eSIM technology benefit travelers in terms of global coverage?
During international travel, eSIM technology offers global coverage and flexible connectivity. It eliminates the need for multiple physical SIM cards and simplifies travelers' communication experience, enhancing the user travel experience worldwide.
How has eSIM technology transformed global communication?
eSIM technology has significantly simplified global communication for international travelers and businesses. eSIMs offer a level of flexibility and convenience as compared to the traditional SIM card. Travelers can remotely reprogram eSIMs and switch carriers according to their needs and preferences.
What are the growth projections for the eSIM market in travel?
Experts predict that the eSIM market for travel will grow significantly, increasing from USD 4.7 billion in 2021 to USD 16.3 billion by 2027. This rise is due to the increasing need for connectivity making travel more convenient.
