Growing demand for IoT connectivity is a major factor driving growth of the eSIM market. eSIM enables connectivity for IoT applications such as smart meters, POS machines, smart city infrastructure sensors, automotive telematics devices, etc. without the need for a physical SIM card. Furthermore, eSIM allows hassle-free switching between multiple mobile operators which is advantage for the evolving IoT sector. Increasing adoption of dual SIM and advent of 5G networks are also promoting the eSIM market growth. Growing number of smart applications and devices supporting eSIM functionality will continue to boost demand in the coming years. eSIM enables a better user experience by eliminating the need to swap or insert physical SIM cards. Its integration in smartphones, tablets, smartwatches and other devices is expected to gain widespread adoption over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the esim Market Size is moderate. Market players require large capital investments to establish manufacturing facilities and infrastructure to design and develop eSIM chips. This high initial investment acts as a deterrent for new players to enter the market. However, the growing demand for eSIMs provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high. Major buyers in the market include smartphone OEMs, network operators etc. Buyers can negotiate on price and demand better deals from vendors due to the presence of various vendors providing eSIM solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major suppliers providing services include chip suppliers, network providers and device manufacturers. Established relationships between buyers and suppliers ensure stable supply of components. However, buyers can opt for alternative suppliers if prices rise substantially.
Threat of new substitutes: The threat of new substitutes is low. eSIM provides seamless connectivity without having to swap SIM cards. No direct substitutes are available currently which can provide the same connectivity features.
Competitive rivalry: High due to presence of numerous global players offering enhanced solutions.

SWOT Analysis

Strength: eSIM allows dual SIM functionality and hassle-free connectivity. Growing adoption of IoT solutions boosts eSIM market growth.
Weakness: High costs associated with eSIM deployment and management. Additional hardware required for eSIM installation.
Opportunity: Rising adoption of networked devices in automotive & transportation sector. Emergence of 5G networks to spur eSIM deployment.
Threats: Availability of alternative technologies providing SIM connectivity. Data security & privacy concerns associated with eSIM profiles.

Read Our More Blogs : https://www.zupyak.com/p/3913460/t/artificial-intelligence-is-fastest-growing-segment-fueling-the-growth-of-esim-market

Read Our More Blogs : https://www.feedsfloor.com/other/esim-market-estimated-witness-high-growth-owing-rising-demand-connected-devices

Read Our More Blogs : https://healthcarenewsbulletin.blogspot.com/2023/11/esim-market-is-estimated-to-witness.html