Tech Trends

E-SIM Card - Swift Uptake of Industry 4.0 Technology

Press release   •   Jul 11, 2017 19:07 IST

The global E-SIM card market is rising steadily due to the several advantages of E-SIM card over conventional SIM cards. E-SIM card allows changing mobile network operator at a few clicks, a feature distinct to them. For instance, ability to switch network providers over the air in machine to machine systems such as smart meters and connected cars has substantial advantages in terms of reducing logistics and operational costs.

The compact design of E-SIM and standardization of technical specifications for Embedded SIM technology is another distinct feature that sets E-SIM cards apart from conventional SIM cards. This is because Embedded SIM technology is standardized by Groupe Speciale Mobile Association, which comprises more than 800 mobile operators worldwide. Further, compact design of E-SIM cards is advantageous to original equipment manufacturers for increasing the battery size or to provide additional storage in electronic devices.

Ease of Switch of Mobile Network Operator Pushes Demand

There are several key factors bringing about growth in the global E-SIM card market. First and foremost, E-SIM card provides the ability to change network provider Over the Air (OTA) in real time. Users of embedded SIM can change mobile network operator (MNO) at ease with few clicks on the device in real time thereby preventing users to incur international roaming charges. For instance, ability to switch network provider over the air in M2M systems such as in smart meters and connected cars has substantial advantages in terms of reducing logistics and operational costs. This is leading to the rising adoption of M2M products.

Amongst other advantages, standardization of technical specifications for Embedded Sim technology offers enhanced security as compared to traditional Sim card. Embedded Sim technology is standardized by Groupe Speciale Mobile Association, which includes more than 800 mobile operators worldwide. Further, compact design of E-SIM allows original equipment manufacturers (OEMs) to utilize the saved space to either increase the battery size or provide additional storage in devices such as smartphones and tablets.

Usability for Emergency Services Ramps up Adoption

Another key factor providing opportunity to the growth of E-SIM card market is the increasing adoption of E-SIM card in consumer electronics and in the automotive industry. Embedded Sim in automobiles is used for real-time navigation, infotainment services such as weather information, traffic, and insurance and breakdown services. Other uses of E-SIM card in the automotive industry include remote vehicle monitoring, automatic placing of an emergency call in the event of an emergency, and assumption of car control if driver loses consciousness.

Proving a hindrance to the growth of global E-SIM cards market is plausible resistance of adoption of E-SIM card by MNOs as they eliminate the need for customers to visit a physical store for face-to-face communication with the network provider. This enhances customer’s bargaining power directly or indirectly, says the lead analyst of the study.

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