The digital revolution has transformed how people and devices connect to networks. At the forefront of this transformation is eSIM technology, a breakthrough that has upended Consumer and IoT connectivity through its disruption. While physical SIM cards once reigned, the transition to fully integrated digital solutions ushered in adaptability with broad appeal to all.
A recent Data Bridge study, underscores this shift, projecting the Asia eSIM market to grow at a compound annual rate (CAGR) of 13.8% between 2023 and 2027. This quick adoption reflects huge demand for seamless, always-on connectivity for consumer mobile use or within complex IoT ecosystems.
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The introduction of eSIM technology in increasingly prevalent consumer and IoT devices raises new “silent” hyper-customisation challenges to ensure each device receives the right eSIM profile with optimal settings. As industries increasingly rely on connected solutions, eSIM stands as a key enabler of seamless, scalable connectivity.
As a leading technology provider who unlocks safer and easier ways to pay and connect and connectivity solutions, IDEMIA Secure Transactions (IST) plays a key role in advancing eSIM technology, ensuring businesses and consumers can benefit from eSIM today.
Empowering industries with embedded connectivity
Across several industries in the Asia-Pacific (APAC) region, the shift towards connectivity relying on eSIM technology is accelerating at a rapid pace. Sectors including smart utilities, logistics, agriculture, transportation, smart cities, and automotive are leveraging eSIM-powered IoT solutions to help transform operations. This transition permits businesses to invest in new frontiers and innovative strategies, supercharging customer experiences and boosting overall operational efficiency.
By making it possible to remotely manage network access over the air, eSIM technology is transforming connectivity in sectors including asset tracking, logistics, and automotive. It guarantees devices to switch cellular providers as they travel between locations, connect to local networks with ease once they arrive, and maximise coverage by choosing the strongest network available, all of which will help businesses simplify complex operations.
IoT-enabled eSIMs are essential for smart logistics because they simplify operations, let businesses remotely provision and update connectivity, minimise downtime, and improve supply chain efficiency with scalability, flexibility and security.
The new GSMA eSIM IoT framework (SGP.31/32) is a major step in the adoption of IoT eSIM. It decreases implementation challenges, particularly for low-power, battery-operated devices like asset trackers and smart meters that operate in remote areas that have limited connection.
For example, to monitor a variety of environmental factors, optimise complex resource use, and boost production, smart farming solutions that rely on IoT-enabled sensors must be linked into the farming equipment and they are well-equipped to withstand harsh weather conditions.
Furthermore, iSIM technology, an evolution of eSIM, is unlocking new opportunities by embedding SIM functionality directly into versatile IoT chipsets, enabling greater operational security and flexibility.
And IST, a global leader in digital security and identity, is at the forefront of this innovation through tailored solutions, helping businesses scale and implement eSIM-powered IoT devices, ensuring the necessary infrastructure and security to support extensive deployments that is by the GSMA standards.
Revolutionising consumer experiences
New eSIM technology is transforming how consumers connect to mobile networks by eliminating physical SIM cards and allowing remote activation and management without visiting carriers or waiting for delivery. Consumers can instantly download an eSIM profile for immediate access anywhere, anytime. Most even offer international phone plans that are now the norm in every plan
This transition also drives digital change for mobile operators, requiring adapted systems, operations and distribution to ensure frictionless, secure and fully digital eSIM adoption.
Across Southeast Asia, the rapid growth in eSIM adoption is closely linked to major device manufacturers integrating the technology into a wider range of smartphones. Following global trends set by companies like Apple, which made a significant push for eSIM with devices such as the iPhone 14 series, and Samsung, which continues to include eSIM in its flagship Galaxy S lines as well as expanding to more accessible A-series models, the availability of eSIM-enabled devices in the region has increased substantially.
By 2028, most smartphone connections will likely rely on eSIM, according to GSMA Intelligence, projecting 6.9 billion eSIM smartphone connections by 2030. This presents a game-changing opportunity for operators to streamline logistics, lower inventory expenses and implement highly adaptive and flexible solutions, like our Just-in-Time eSIM profiles generation features, enabling them to match eSIM profiles with each device’s unique specificities, greatly improving operational efficiency.
Transforming travel experiences
One dynamic eSIM application involves international travel, where eSIM allows avoiding expensive roaming by instantly activating local provider profiles and connectivity without purchasing or replacing physical SIM cards.
The travel eSIM industry is expanding rapidly. Juniper Research experts in the telecom space project the number of worldwide travellers using eSIM will boom from 40 million in 2024 to over 215 million by 2028. As pioneers in this domain, IST has sped adoption by facilitating a fully digital onboarding journey, making it simpler for travellers to access connectivity with minimal hassle.
Additionally, Kaleido Intelligence’s broader market outlook reveal that travel eSIM retail expenditures will surge 500% between 2023 and 2028. And, in APAC, it is anticipated for the market to grow to USD 1.78 billion in 2031 from USD 1.18 billion back in 2013, according to a Data Bridge Market Reserch.
In response to anticipated rising consumer demand, new market entrants are delivering tailored eSIM solutions to facilitate travel globally. Companies such as Holafly and Airalo challenge legacy carriers by providing more convenient, affordable options. Even fintech companies like Nomad and Revolut now incorporate eSIM access into their offerings, furnishing customised data packages for frequent travellers.
Integration of eSIM continues branching across various sectors. Hotels and booking platforms bundle connectivity with reservations, cultural venues heighten visitor experiences through eSIM access, and airlines, alongside fintech applications, integrate eSIM activation within their ecosystems. This spreading adoption underscores eSIM’s adaptability in seamlessly delivering value-added services across different sectors.
Future of connectivity
Beyond consumer mobility and IoT usages, eSIM adoption also contributes to sustainability by eliminating plastic waste from physical SIM cards and streamlining supply networks. As a leader in payment and connectivity solutions, IST ensures its solutions are future-proof while contributing to a more sustainable future.
As we continue to push the boundaries of seamless and secure connectivity, it’s also crucial to anticipate the challenges of tomorrow. Quantum computing, while promising incredible advancements, also poses significant risks to today’s cryptographic systems. IDEMIA Secure Transactions is actively working to integrate post-quantum security into its connectivity solutions, ensuring that businesses and consumers alike can remain secure and resilient as the quantum era approaches.
The telecommunications industry is moving toward a more digital future, eSIM technology drives innovation, enhanced security, and frictionless connectivity. IST stands at the forefront of this transformation, with state-of-the-art eSIM solutions empowering businesses, elevating user experiences, and reshaping the digital landscape.
The article titled “Reshaping connectivity for a smarter world” was authored by Benson Yeo, Vice President, Connectivity Services Asia Pacific at IDEMIA Secure Transactions
About the author
Benson Yeo is a senior executive at IDEMIA Secure Transactions (IST) in Singapore, currently serving as the Vice President of the Connectivity Services business for the Asia Pacific region. In this role, he spearheads strategic initiatives and cultivates partnerships with telecommunications providers, delivering secure connectivity solutions across the region. His leadership has played a pivotal role in IST’s growth and technological advancements within the Asia Pacific market.
With more than 25 years of experience in the telecommunications industry, Benson has been a key driver behind IST’s partnerships with leading telecom operators across Singapore, Australia, Japan, South Korea, and beyond. His leadership has been crucial in delivering advanced solutions, including SIM card technologies, eSIM, eSIM IoT, Advanced SIM, and over-the-air (OTA) capabilities, all of which have greatly enhanced network efficiency and the overall user experience across the region.
With a strategic vision focused on driving innovation and fostering collaboration, Benson continues to address the evolving challenges within telecommunications and connectivity. His work has positioned IDEMIA Secure Transactions as a key player in the ongoing digital transformation of the Asia Pacific telecommunications landscape.