eSIM adoption is on the rise thanks to travel and device compatibility

The adoption of eSIM technology is experiencing a notable increase, fueled primarily by the growing need for connectivity among travelers. Although eSIM has existed for a decade, its global uptake was only around 3% last year and is projected to exceed 5% this year. Experts, including analysts and investors in eSIM startups, are optimistic about its future, particularly as major smartphone manufacturers launch new devices featuring eSIM capabilities. The introduction of eSIM in smartphones dates back to 2017 and 2018, with prominent models like the Pixel 2 and iPhone XR leading the charge. Last year, Apple took a significant step by releasing eSIM-only models in the U.S., with Google following suit this year with its Pixel 10. Apple has further expanded its offerings, introducing the eSIM-exclusive iPhone Air and providing eSIM-only options for the iPhone 17 series in over 11 countries. One of the advantages of these eSIM devices is enhanced battery life compared to those with physical SIM slots. According to Counterpoint, the penetration of smartphones equipped with eSIM technology is expected to reach 23% by 2024, with the U.S. market being the most robust, where 41% of devices launched in 2024 will feature eSIM capabilities. Historically, eSIM has been limited to high-end devices, but this is slowly changing, as the GSMA reports that over 60 eSIM-enabled smartphones have been launched in just the first half of 2025. China's market is poised to play a crucial role in eSIM's growth. Following the launch of Apple's eSIM-only phone, Chinese telecom providers began offering eSIM support, and local giants like Huawei, Xiaomi, Oppo, and Vivo are expected to introduce more eSIM-compatible devices. These brands have a significant presence in price-sensitive markets across Asia and Africa, indicating a potential shift toward broader eSIM adoption. As more travelers embrace eSIM for its convenience, a GSMA survey reveals that 51% of eSIM users utilize the technology primarily for travel. This trend is supported by startups such as AirAlo, Holafly, eSIM.me, Nomad, and Truely, which have seen substantial growth due to the travel sector. For instance, AirAlo's CEO, Bahadir Ozdemir, noted that 85% of users on their app were first-time eSIM adopters, highlighting the technology's appeal to frequent travelers. In addition to these startups, major telecom operators are also eyeing the travel eSIM market. Vodafone has partnered with UEFA to provide a specialized eSIM for football fans attending matches across Europe. Meanwhile, companies like Truely have reported serving over 70,000 travelers in the last two years, with significant growth in orders this year. Despite the positive trends, barriers to broader eSIM adoption remain. Issues such as user education, trust, and the complexity of the installation process—where users must scan a QR code to set up their eSIM—pose challenges. As eSIM technology becomes more prevalent, industry leaders acknowledge the need for solutions that simplify the onboarding process for users. As the market continues to evolve, investors are closely monitoring the landscape for new opportunities, particularly in travel-related eSIM services. While the current focus remains on catering to travelers, experts believe there is significant potential for growth in domestic markets as more consumers become familiar with eSIM technology.