The term "eSIM" simply means an embedded SIM card. There are no physical SIM cards involved and no physical swapping required. eSIM is supported by the network or carrier and enabled by them.
An eSIM is basically a small chip inside your phone and works in a similar way to the NFC chip that's used for payment tech like Apple Pay and Google Pay. The information on an eSIM is rewritable, meaning you can decide to change your operator with a simple phone call. They're easy to add to a data plan – connecting devices with eSIMs to a mobile account can be done in minutes.
When traveling with a traditional SIM card, one may have to swap to another carrier’s SIM card to ensure connectivity. In fact, one of the advantages of eSIM technology is that it is much easier to switch carriers straight from your phone. If you’re a dual-SIM user, eSIM technology supports multiple accounts and switching between them is easy.
The Google Pixel 2 was among the first phones to support eSIM technology and an app for managing your eSIM is available from the Google Play Store. Handset manufacturers like Apple and Google, have already adopted eSIM tech .
The global eSIM market size was valued at USD 8.03 billion in 2019 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 15.8% from 2020 to 2027. The rapid increase in the number of IoT connected devices in different end-use verticals such as automotive, consumer electronics, energy and utilities is propelling the market growth. Moreover, eSIM technology has led to advancements in the connected ecosystem by enabling secure Machine-to-Machine (M2M) communication. Thus, eSIM offers secure, reliable and cost-efficient cellular connectivity for IoT/ M2M applications.
eSIM has become a hot topic among device manufacturers and its increasing role in the industry is clear as device manufacturers benefit from lower costs and higher capacity on the processing board.