Esim Hardware - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The esim hardware market size in terms of shipment volume was valued at 0.61 billion units in 2025 and is estimated to grow from 0.73 billion units in 2026 to reach 1.73 billion units by 2031, at a CAGR of 19.01% during the forecast period (2026-2031). This report is segmented by Network Type (4G/LTE, NB-IoT/LTE-M, and More), Form Factor (MFF2, Plug-In ESIM, System-In-Package and Integrated IUICC, and More), Device Type (Smartphones, Tablets and Laptops, M2M/IoT Modules, and More), Application (Consumer Electronics, Automotive and Transportation, Industrial, Logistics, and More), and Geography. The Market Forecasts are Provided in Terms of Volume (Units).

Global Esim Hardware Market Trends and Insights

Accelerating 5G Standalone and Private-Network Rollouts

The eSIM hardware market is benefiting from private 5G standalone networks that need secure credentials without conventional carrier SIM handling. The Global Mobile Suppliers Association identified 2,003 organizations deploying private mobile networks across 88 countries in Q1 2026, with customer references expanding at a 37% CAGR since 2019. Manufacturing, education, and mining led adoption, and more than half of private-network references announced since 2022 used 5G. Enterprises operating these networks need remote provisioning because they cannot depend on mobile network operator SIM logistics for every device, so they source certified eUICC hardware through silicon vendors and module integrators. Network slicing also requires chips that can maintain multiple operator profile slices, separating slice-capable products from standard eSIM silicon. This extends the eSIM hardware market to factories, campuses, mines, and logistics sites while reducing the role of traditional SIM OS distribution in some deployments.

Migration to eSIM-Only Flagships

The migration to eSIM-only flagship devices is increasing demand for certified eUICC and iSIM hardware. Trusted Connectivity Alliance members reported that global eSIM shipments increased 18% in 2025 and consumer profile downloads increased 43%, showing that more devices were moving into active use. North America remained the strongest consumer region, while adoption increased sharply in the Middle East, Africa, and South America. Each device without a physical SIM tray needs an embedded credential, linking device design decisions directly to component volumes, and more than 60 eSIM-enabled smartphone models were launched in the first half of 2025. China’s domestic policy changes in October 2025 require locally issued profiles, giving suppliers such as Unigroup Guoxin and CEC Huada a clearer route into local handset supply chains. Global suppliers still benefit from wider device adoption in the eSIM hardware market, but device makers must align hardware design, profile management, and local approval processes before activation at scale.

Legacy and Next-Generation IoT Specification Fragmentation

The eSIM hardware market faces procurement delays because legacy and new IoT specifications are operating in parallel. Existing M2M deployments follow GSMA SGP.02, while newer deployments are moving to SGP.32, and the standards use incompatible remote provisioning protocols with different platform stacks. Organizations must decide whether to extend existing SGP.02 fleets or purchase new SGP.32-certified hardware, creating budget uncertainty that can delay procurement by 12-18 months. Silicon and eSIM OS suppliers must sustain separate certification paths, which can extend development cycles and slow cost reductions from higher production volumes. Smaller suppliers may find it difficult to fund compliance work across both architectures at the same time. Enterprises may delay new orders until implementation choices become clearer, especially for fleets operating across countries that need stable lifecycle support.

Other drivers and restraints analyzed in the detailed report include:

• Automotive eCall and Cybersecurity Requirements
• Remote Provisioning and Lower Operator Logistics Costs
• Limited eSIM Awareness Outside Premium Devices

Segment Analysis

4G/LTE held 57.45% of the eSIM hardware market share in 2025, reflecting its established position in smartphones and M2M modules. Devices produced from 2021 through 2025 mainly used 4G/LTE as their primary connectivity option, supported by broad carrier coverage in North America, Europe, and urban Asia-Pacific. Smartphones, automotive telematics units, and industrial gateways continue to use certified 4G/LTE hardware in large volumes. NB-IoT/LTE-M serves lower-power uses such as smart metering, agricultural monitoring, and asset tracking, where continuous connectivity matters more than high data throughput. MFF2 eUICC chips are common in these applications because they are designed for long service life and demanding temperature conditions.

The GSMA published SGP.32 V1.3 in May 2026 with provisions for network-constrained and user-interface-constrained IoT devices. The update confirms that the newer provisioning model applies to low-data-rate devices as well as broadband cellular equipment. 5G is projected to expand at a 20.99% CAGR from 2026 to 2031 as private 5G and compatible consumer devices add demand, and the GSA reported 974 organizations deploying 5G private mobile networks globally in June 2026. Dual-mode chipsets supporting both 4G/LTE and 5G are likely to remain important during the transition because they preserve network flexibility.

MFF2 retained 69.85% of the eSIM hardware market volume in 2025 because its standardized pinout supports established automotive and industrial designs. The form factor is widely used in telematics control units, industrial gateways, and smart energy meters because it prevents the physical removal of a SIM from fixed or difficult-to-access equipment. ETSI TS 102 671 Release 18 supports multi-supplier qualification across temperatures from -40°C to +105°C. MFF2 measures 5×6 mm and can fit existing printed circuit board layouts without changes, helping manufacturers manage long production cycles. It remains suitable where reliability matters more than extreme miniaturization.

ETSI Release 18 introduced MFF3 and MFF4 packages in 3×3 mm and 2×2 mm sizes, providing standardized sizes between MFF2 and wafer-level packaging. Wafer-level CSP is forecast to expand at a 19.36% CAGR from 2026 to 2031 as smartphone and wearable makers seek lower profiles and less board area. Infineon introduced the OPTIGA Connect Consumer OC1230 in the first half of 2026 as a 28 nm eSIM turnkey solution for wearables and ultra-thin smartphones, featuring lower power consumption and connected-product security features. Plug-in eSIM remains relevant for retrofits, while system-in-package and integrated iUICC designs are gaining use in compact devices.

Complete Report Scope:

• By Network Type
  • 4G/LTE
  • 5G
  • NB-IoT/LTE-M
• By Form Factor
  • MFF2
  • Wafer-Level CSP
  • Plug-In eSIM
  • System-in-Package and Integrated iUICC
• By Device Type
  • Smartphones
  • Tablets and Laptops
  • Wearables
  • M2M and IoT Modules
• By Application
  • Consumer Electronics
  • Automotive and Transportation
  • Industrial and Manufacturing
  • Logistics and Asset Tracking
  • Other Applications (Energy and Utilities and Healthcare and Medical Devices)
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Rest of Asia-Pacific
  • Middle East
    • Saudi Arabia
    • United Arab Emirates
    • Rest of Middle East
  • Africa
    • South Africa
    • Nigeria
    • Rest of Africa

Geography Analysis

North America held 38.69% of the eSIM hardware market volume in 2025, giving the region the leading position. Earlier eSIM-only smartphone adoption helped operators build activation infrastructure ahead of many other regions. The Trusted Connectivity Alliance identified North America as the region with the strongest consumer adoption in 2025. The United States accounted for a large part of activated eSIM connections, while Canadian private mobile networks added an enterprise demand source. Canada’s private mobile network deployments increased 5% in Q1 2026, and Mexico’s automotive and industrial IoT manufacturing base also supports demand as production moves closer to North American end markets.

South America saw consumer eSIM adoption double in 2025, although its absolute base remained smaller than North America’s. The increase indicates that regional operators are expanding the activation infrastructure needed for future device shipments. Europe remains the second-largest regional contributor because of smartphone activity, vehicle connectivity requirements, eCall rules for packet-switched emergency calls, and wider cybersecurity requirements for digital products. New eCall technical standards will apply from January 1, 2027, while the United Kingdom is developing SGP.32-native programs through EE, Vodafone, Three, and O2.

Asia-Pacific is projected to expand at a 19.88% CAGR from 2026 to 2031, making it the fastest-growing geography in the eSIM hardware market. China’s domestic activation policy broadened the basis for consumer eSIM adoption from October 2025. India gained another support factor when Tata Communications and BSNL introduced pan-India eSIM infrastructure in October 2025 for smartphone and smart-meter uses. Japan and South Korea use embedded credentials in connected vehicles, wearable payment devices, and smart manufacturing, while Australia is extending use through enterprise and government IoT programs. Saudi Arabia and the UAE are investing in smart-city and industrial IoT systems, while Africa recorded doubled consumer adoption in 2025, led by South Africa and Nigeria, although demand is expected to remain below developed-market levels through 2031.

List of Companies Covered in this Report:

• Giesecke+Devrient GmbH
• STMicroelectronics N.V.
• Infineon Technologies AG
• Thales Group
• IDEMIA France SAS
• NXP Semiconductors N.V.
• Valid S.A.
• Arm Limited, Kigen
• Workz Group
• Qualcomm Technologies, Inc.
• Samsung Electronics Co., Ltd.
• Apple Inc.
• Sierra Wireless, Inc.
• Telit Cinterion
• u-blox Holding AG
• Nordic Semiconductor ASA
• GCT Semiconductor Holding, Inc.
• Unigroup Guoxin Microelectronics Co., Ltd.
• CEC Huada Electronic Design Co., Ltd.
• Watchdata Technologies Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support