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Published on:
June 20, 2024
Tags:
API
eSIM
SIM card
Telecom
No more waiting for the future to come. It is already here, with the eSIM technology significantly shifting how we connect and communicate. We know that numbers speak louder than words To sound more persuasive, let’s refer to the stats recently shared in a report by trustedconnectivityalliance.org, emphasizing a 109% year-on-year boost in consumer eSIM adoption. As we are in Q2 of 2024, witnessing new technologies and eSIM-compatible devices hitting the market, we can assume the global adoption rate of eSIM over traditional SIM cards will continue to grow.
The primary driver behind this digital shift is the North American market, where leading wireless connectivity providers have adopted digital-first strategies. The demand for eSIM-only smartphones has soared, prompting major mobile operators to embrace these technologies. Asia and Western Europe are also witnessing similar trends, with their eSIM adoption rates doubling over the past year.
Future growth in eSIM adoption is expected to be propelled by the introduction of eSIM-only smartphones in new regions and the increased availability of eSIM-enabled devices. Additionally, the resurgence of international travel—projected to exceed pre-pandemic levels in 2024—will further drive eSIM adoption as consumers seek the flexibility and convenience that eSIM offers for roaming.
Substantial investments in eSIM Subscription Manager (SM) platforms, which facilitate the remote provisioning and lifecycle management of eSIMs, have supported the surge in eSIM adoption. In 2023, the number of deployed consumer eSIM SM platforms increased by 25%, reflecting mobile operators' commitment to enhancing their digital capabilities.
While eSIM shipments saw a slight decline of 2% to 374 million units in 2023, the available market remained robust at 390 million units. This stability is notable given the global economic challenges, including inflation and the 'cost-of-living' crisis, dampening consumer demand for smartphones and mobile subscriptions. However, easing inflation towards the end of the year and rebalancing the global chip shortage are expected to foster a more favorable market environment in 2024.
The traditional SIM market also felt the impact of broader economic factors, with the total available market for non-eSIM SIM cards decreasing by 7% to 3.8 billion units in 2023. This trend underscores the ongoing digitalization of the SIM market, driven by the increasing adoption of eSIM in key regions like North America.
As eSIM technology becomes more widely available, consumers worldwide recognize the advantages of flexible and seamless connectivity. This realization prompts businesses to incorporate eSIM services, signaling a clear shift towards a digitally connected future.
Reflecting on 2023, several significant developments have shaped the telecom industry, including the challenges of 5G monetization, market consolidation in Europe, and the continued rise of eSIM technology. Looking ahead to 2024, digital, intelligent, and user-friendly technologies are poised to drive telco success.
Generative AI is emerging as a transformative technology for various industries, including telecoms. Unlike traditional AI, generative AI is designed to create new content autonomously, using advanced machine learning algorithms. The launch of ChatGPT in late 2022 brought AI into the mainstream, with widespread recognition of its potential applications.
In 2024, the focus will shift towards developing profitable use cases for generative AI in telecoms. This technology offers opportunities to enhance network efficiency, predict and prevent outages, and optimize resource allocation in real-time. It can also generate documentation, analyze data for network configuration, and create digital twins for testing and optimization without affecting live networks.
TM Forum's Reigniting Telecoms Growth report shows that the telecom industry is expected to grow by 1.8% between 2022 and 2027. This growth will be driven by digital operators who can adapt to changing consumer behaviors. As consumers increasingly prefer digital interactions for convenience, telecom operators must transition from traditional models to digital-first strategies.
For existing telecom operators, success in 2024 will involve embracing digital transformation and offering additional digital services. This could include integrating eSIM capabilities into apps to enhance customer experiences or embedding financial services to enable banking functions. The goal is for telecom operators to evolve into 'super-apps,' providing a wide range of services, from social media and e-commerce to messaging and banking, all in one platform.
The agility of no- or low-code business support systems (BSS) is essential to quickly launching new revenue streams. These systems simplify software development by minimizing the need for complex coding, allowing telcos to accelerate innovation and bring new functions to market faster. Adopting no- or low-code technology will help telecom operators stay ahead of the curve and maintain a competitive edge.
The digitalization of the SIM market is well underway, with eSIM technology leading the charge. The remarkable 109% increase in eSIM adoption in 2023 highlights the growing consumer demand for flexible and seamless connectivity. As the industry moves forward, embracing digital transformation and leveraging emerging technologies like generative AI will be key to telecom success in 2024 and beyond.
Platforms like esimba.ai offer comprehensive eSIM management solutions for those looking to integrate eSIM into their customer journey and boost ancillary revenue through eSIM sales. These solutions simplify the process and enhance profitability.
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Being a registered global MVNO, esimba.ai, a subsidiary of Keepgo, provides you with the opportunity to offer your customers top-quality connectivity in 150+ countries.
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