The evolution of SIM cards has seen them shrink from the size of a credit card to the tiny nano-SIM introduced in 2012. However, the latest advancement, eSIM, eliminates the need for a physical card entirely. Built into devices, this virtual SIM allows users to switch between networks by downloading new profiles rather than inserting a new SIM card.
The concept of eSIM was introduced by the GSMA in 2016, and by 2017, the first eSIM-enabled device, the Google Pixel 2, was launched. Since then, the number of eSIM-ready devices has grown, with some, like the iPhone 14, being eSIM-only. This growth is expected to push eSIM-related sales to $16.3 billion by 2027.
A SIM card traditionally stores information that links a user to a mobile network, including their phone number and network authentication details. Over the years, these cards have significantly reduced in size, yet eSIM technology has taken a different approach by embedding the functionality directly into a device’s circuit board. Vodafone estimates that this transition to eSIM could save up to 320 tonnes of plastic annually.
eSIM technology is gaining momentum due to its convenience. Users can easily switch providers or plans through an app or QR code without needing to physically replace a SIM card. This is particularly beneficial for travellers, who can digitally switch to a local plan, avoiding the hassle of multiple SIM cards. Companies like Wizz Air and Revolut are already capitalising on this, offering eSIM services that cater to travellers’ needs.
Beyond mobile phones, eSIM is also supported by wearables, tablets, and laptops, allowing users to manage connectivity across multiple devices under a single data plan. In the industrial sector, eSIMs facilitate the integration of IoT devices, enabling remote provisioning and management across vast areas or confined spaces with minimal interference.
Despite its advantages, eSIM adoption faces challenges. Not all manufacturers and service providers have embraced eSIM technology, which could limit its availability, particularly in regions where smaller mobile operators might be slower to adopt it due to the costs involved. Additionally, consumer awareness of eSIM remains low, with less than 30% aware of the technology. Many older devices do not support eSIM, requiring users to upgrade to newer models. Furthermore, prepaid eSIM options are limited, which may deter budget-conscious consumers.
For eSIM technology to reach its full potential, mobile network operators need to upgrade their systems to support eSIM capabilities fully. Device manufacturers must also increase compatibility across their products. As these developments unfold, eSIM has the potential to revolutionise connectivity, offering users the ability to manage multiple profiles and switch networks with unprecedented ease.
In the coming years, eSIM could become the standard for mobile connectivity, provided operators can offer flexible and competitive plans. This shift could ultimately lead to the phasing out of physical SIM cards, marking a new era in mobile technology.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
