Embedded SIM Market to Reach 2.12 Billion Units by 2031 as 5G Connectivity and IoT Adoption Drive Market Growth

October 27 16:48 2026
Embedded SIM Market to Reach 2.12 Billion Units by 2031 as 5G Connectivity and IoT Adoption Drive Market Growth
E-SIM Market
Mordor Intelligence has published a new report on the Embedded SIM market, offering a comprehensive analysis of trends, growth drivers, and future projections.

[Hyderabad, India] – October 27, 2026

Embedded SIM Market Overview

The Embedded SIM market size in terms of shipment volume is projected to reach 0.65 billion units in 2026 and 2.12 billion units by 2031, registering a CAGR of 26.67% during the 2026–2031 forecast period. The market is gaining traction as device manufacturers and connectivity providers increasingly adopt embedded subscriber identity module technology to simplify device design, support remote SIM provisioning, and enable flexible network management. Unlike removable SIM cards, embedded SIMs are integrated into devices, allowing users and enterprises to manage mobile network subscriptions digitally without physically replacing a card.

The eSIM market is benefiting from growing demand across smartphones, connected vehicles, wearable devices, industrial equipment, and machine-to-machine communication systems. Consumer electronics manufacturers are incorporating eSIM capabilities into connected devices, while enterprises are adopting embedded connectivity for remote monitoring, logistics, and asset tracking. Support for multiple network generations, including 4G/LTE, 5G, and narrowband IoT technologies, is expanding deployment opportunities. These developments are strengthening the role of embedded SIM solutions across consumer and enterprise connectivity applications.

Key Trends in the Embedded SIM Market

Growing Adoption of eSIM-Enabled Smartphones and Consumer Electronics

Smartphones, tablets, laptops, and wearable devices are important application areas for the Embedded SIM industry. Device manufacturers are integrating eSIM functionality to reduce dependence on physical SIM slots and simplify device configuration. Digital activation allows consumers to manage supported mobile subscriptions without visiting a retail outlet or handling a removable card. As manufacturers expand eSIM support across product portfolios, the eSIM market is gaining opportunities in connected consumer electronics, particularly devices designed for international travel, multiple subscriptions, and flexible carrier selection.

Rising Demand for Connected Vehicles and Automotive Applications

Automotive and transportation applications are supporting Embedded SIM market growth as manufacturers require dependable connectivity for vehicle diagnostics, navigation, emergency communications, and connected services. Embedded SIM technology enables remote subscription management and helps vehicles maintain network connectivity across supported regions. Automotive manufacturers and connectivity providers can use remote provisioning to manage subscriptions throughout a vehicle’s service life. These capabilities are relevant to connected passenger vehicles, commercial fleets, and transportation systems that depend on continuous data exchange between vehicles, service platforms, and infrastructure.

Expanding Industrial IoT and Machine-to-Machine Connectivity

Industrial and manufacturing operations are adopting connected equipment for remote monitoring, predictive maintenance, production visibility, and asset management. Embedded SIM solutions can support these applications by providing persistent cellular connectivity without requiring physical SIM replacement at deployed locations. The Embedded SIM market trends also reflect growing interest in logistics and asset tracking, energy and utilities, and healthcare applications. Devices operating across different countries or difficult-to-access locations can benefit from remote provisioning, while enterprises can manage connectivity requirements across distributed equipment and multiple network providers.

Increasing Adoption of Remote Provisioning Standards

Remote SIM provisioning is an important consideration for manufacturers, mobile network operators, and enterprises deploying connected devices at scale. Consumer and machine-to-machine applications have different connectivity management requirements, creating demand for suitable provisioning specifications. SGP.22 supports consumer eSIM applications, SGP.02 addresses established machine-to-machine deployments, and SGP.32 is designed for IoT device provisioning. These specifications help define how subscriptions are managed remotely across compatible devices. As businesses expand connected-device deployments, provisioning capabilities are becoming an important factor in evaluating embedded SIM platforms and long-term connectivity management.

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Embedded SIM Market Segmentation

The report examines the market across the following segments:

  • By Network Type: 5G, 4G/LTE, and NB-IoT/LTE-M.

  • By Device Type: Smartphones, tablets and laptops, wearables, and M2M/IoT modules.

  • By End-User Industry: Consumer electronics, automotive and transportation, industrial and manufacturing, logistics and asset tracking, energy and utilities, and healthcare and wearables.

  • By Form Factor: MFF2, wafer-level CSP, and plug-in eSIM.

  • By Provisioning Specification: SGP.02 (M2M), SGP.22 (consumer), and SGP.32 (IoT).

  • By Geography: North America, including the United States, Canada, and Mexico; South America, including Brazil, Argentina, and the rest of South America; Europe, including the United Kingdom, Germany, France, Italy, Spain, and the rest of Europe; Asia-Pacific, including China, Japan, South Korea, India, and the rest of Asia-Pacific; the Middle East, including Saudi Arabia, the United Arab Emirates, Israel, and the rest of the Middle East; and Africa, including South Africa, Nigeria, and the rest of Africa.

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Key Players in the Embedded SIM Industry

The competitive landscape includes technology providers developing secure embedded connectivity components, SIM platforms, and remote provisioning solutions for consumer and industrial applications. Giesecke+Devrient GmbH provides SIM and digital security solutions for mobile connectivity, while STMicroelectronics N.V. supplies semiconductor technologies used in connected devices. Infineon Technologies AG participates through its semiconductor and security capabilities, supporting applications that require secure device communication.

Thales Group offers digital identity and security technologies, including eSIM-related connectivity solutions for consumer and IoT applications. IDEMIA France SAS also operates in digital identity and connectivity technologies, supporting secure subscriber management and embedded connectivity use cases. Competition across the Embedded SIM industry is influenced by security capabilities, compatibility with provisioning standards, integration requirements, and the ability to support different device categories and network environments.

Explore more insights on Embedded SIM competitive landscape: https://www.mordorintelligence.com/industry-reports/embedded-sim-market/companies?utm_source=abnewswire

Conclusion

The Embedded SIM market forecast reflects expanding demand for digital connectivity management across consumer electronics, automotive systems, industrial equipment, and IoT deployments. As manufacturers integrate embedded connectivity into more device categories, remote provisioning and secure subscription management are becoming increasingly important to network operators and enterprises. Adoption across 5G-enabled devices, connected transportation, and industrial applications is expected to create further opportunities for technology providers.

The market’s development will depend on device compatibility, provisioning standards, network availability, security requirements, and cooperation among device manufacturers, operators, and technology suppliers. Companies that address these requirements can strengthen their position in the eSIM market as organizations seek scalable connectivity solutions for increasingly distributed device ecosystems.

 

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