The shift from physical SIM cards to embedded SIMs, or eSIMs, is quietly reshaping the global mobile connectivity market. Once seen as a niche feature found primarily in high-end devices, eSIM adoption has picked up pace across consumer electronics, enterprise solutions, and travel services. As more consumers and businesses demand seamless, flexible mobile service, the momentum behind eSIM integration is accelerating, driven by telecom providers, device manufacturers, and digital-first startups aiming to redefine mobile connectivity.

What is an eSIM, and why does it matter?

An eSIM (embedded Subscriber Identity Module) is a programmable chip embedded directly into a device’s hardware, eliminating the need for a removable physical SIM card. This chip stores network information and allows users to switch carriers or activate new mobile plans without physically replacing or inserting a SIM card. Initially introduced in consumer devices like the Google Pixel and Apple iPhones, eSIMs are now found in wearables, tablets, IoT devices, and laptops.

Benson Yeo from IDEMIA Secure Transactions discusses reshaping connectivity for a smarter world

For consumers, the appeal is clear: convenience, speed, and flexibility. Instead of waiting for a physical SIM to be delivered—or queuing at a kiosk in a foreign airport, travellers can download an eSIM profile remotely. Business users can provision and manage multiple lines for employees without handling SIM card logistics. Even device manufacturers benefit from streamlined production, as they can skip SIM trays and standardise designs globally.

Global momentum: Telecoms and device makers on board

According to GSMA Intelligence, global eSIM adoption is projected to reach 3.4 billion eSIM-enabled devices by 2025, up from 1.2 billion in 2021. Major smartphone brands such as Apple, Samsung, and Google have integrated eSIM functionality in their flagship models, and Apple’s 2022 decision to launch the iPhone 14 as eSIM-only in the United States has set a precedent that other manufacturers may follow.

Telecom providers have had a mixed response. While some embrace the transition for its operational efficiency and future-readiness, others remain cautious due to concerns over customer retention and potential loss of in-store engagements. Still, over 400 mobile operators worldwide now support eSIM functionality, and adoption continues to grow, especially in Europe, North America, and parts of Asia.

Travel and the rise of the global eSIM market

One of the most significant use cases fueling eSIM adoption is international travel. Instead of paying high roaming fees or swapping SIM cards, travellers can now purchase eSIM data packages tailored to specific countries or regions.

According to Juniper Research, travel eSIM subscriptions are projected to grow by over 500% between 2023 and 2028, surpassing 215 million active users. This surge is supported by an ecosystem of providers offering flexible and competitive packages, from telecom incumbents to digital-native startups.

For example, platforms like Roami curate and rank top eSIM plans for travellers, helping users find region-specific offers. For travellers heading to Latin America, Roami’s ranking of eSIMs in Mexico offers a comparison of the best plans in the market, allowing users to make better purchasing decisions based on speed, coverage, and cost.

This convenience has become especially relevant post-pandemic, as remote work and digital nomadism drive the demand for always-on mobile connectivity without the geographical limitations of traditional carriers.

Enterprise applications: more than just travel

Beyond tourism, enterprises are turning to eSIMs for greater control and scalability in managing large device fleets. This is particularly important for sectors like logistics, fleet management, retail, and healthcare, industries where mobile devices play a critical role in operations.

For instance, with eSIMs, an enterprise can activate or switch carriers remotely for hundreds of devices across locations, minimising downtime and reducing administrative costs. Combined with mobile device management (MDM) platforms, eSIMs are enabling companies to centralise and automate network provisioning. The impact is particularly notable in IoT deployments, where connected sensors, machines, and endpoints need network flexibility without manual SIM swaps.

A Counterpoint Research study notes that nearly 70% of eSIM-supported deployments in 2023 occurred in the B2B and IoT space, underlining that while consumers are driving visibility, enterprise and infrastructure use cases are powering growth.

Market barriers and regional disparities

Despite the growth trajectory, eSIM technology faces roadblocks. Adoption rates vary widely by country due to regulatory issues, lack of infrastructure, and uneven operator support. In Southeast Asia, for example, while Singapore and Thailand have relatively mature eSIM ecosystems, countries like Indonesia and the Philippines are slower to adapt due to legacy systems and a cautious telecom landscape.

User education remains a challenge as well. Many consumers are still unfamiliar with how eSIMs work or are hesitant to switch due to fears around losing data or connectivity. Device compatibility is another constraint—eSIM functionality is often reserved for higher-end phones and tablets, limiting access in price-sensitive markets.

Furthermore, eSIM profiles are not always interoperable across devices or regions. For example, some operators lock profiles to specific device IDs, reducing flexibility. Until these issues are resolved through standardisation and more open frameworks, eSIMs may struggle to fully replace physical SIMs in emerging markets.

Apple’s push and the industry’s direction

Apple’s aggressive pivot to eSIM-only in the U.S. with the iPhone 14 was widely seen as a litmus test for the industry. As other manufacturers consider similar moves, the implications for telecoms are significant. Carriers must now compete on digital experience, offering streamlined activation, transparent pricing, and customer support that doesn’t rely on physical retail infrastructure.

This transition also opens the door for new players. Virtual network operators (MVNOs) and digital eSIM platforms can now offer cross-border packages, dynamic pricing models, and app-based user experiences that outpace traditional telcos in agility and UX.

Startups in this space, such as Holafly and Roami, are reshaping user expectations. These companies operate without legacy baggage and focus entirely on digital distribution and customer support, further pressuring telecom incumbents to modernise.

The road ahead

The shift toward eSIMs is not merely about convenience—it represents a deeper change in how connectivity is managed, distributed, and monetised. With growing support from hardware manufacturers, evolving enterprise needs, and consumer demand for travel-friendly options, the eSIM market is poised to grow across both developed and emerging markets.

But challenges remain. Device interoperability, operator support, regulatory compliance, and user trust will all play a role in determining how fast—and how broadly—eSIMs replace their physical predecessors.

As the global telecom landscape continues to shift, eSIMs sit at the centre of that transformation, offering a new model for how we stay connected in a world that increasingly values flexibility, mobility, and digital-first experiences.

How fast this shift occurs—and how smoothly it unfolds—will depend on how effectively stakeholders across the ecosystem align on standards, user education, and innovation that puts control in the hands of the end user.