eSIM Adoption Accelerates Amidst Travel Boom and Enhanced Device Compatibility
The adoption of embedded SIM (eSIM) technology is experiencing a significant surge, driven by increased global travel and the proliferation of compatible devices. Although eSIM technology has been available for over a decade, its global adoption rate was approximately 3% last year and is projected to surpass 5% this year. Despite these modest figures, industry analysts, eSIM service providers, and investors remain optimistic about its growing trajectory, particularly due to its advantages for travelers.
Device Compatibility:
A pivotal factor contributing to the rise in eSIM adoption is the introduction of eSIM-enabled devices by leading smartphone manufacturers. The initial wave of eSIM-compatible smartphones emerged in 2017 and 2018, with notable models like the Google Pixel 2 and the iPhone XR. In 2022, Apple took a significant step by eliminating the physical SIM slot in favor of eSIM-only models for the U.S. market, a move that Google mirrored with the release of the Pixel 10 this year.
This year, Apple further advanced eSIM integration by launching the eSIM-only iPhone Air and offering eSIM-only variants of the iPhone 17 series in over 11 countries. One notable benefit of these eSIM-exclusive devices is the marginal increase in battery life compared to their counterparts with physical SIM slots.
According to analytics firm Counterpoint, the penetration of eSIM-enabled smartphones was 23% in 2024. The United States leads this trend, with 41% of devices launched in 2024 featuring eSIM capabilities. Historically, eSIM functionality was predominantly found in high-end devices, but this trend is gradually shifting. The GSM Association (GSMA) reported that in the first half of 2025 alone, more than 60 eSIM-enabled smartphones were introduced to the market.
China’s Influence on eSIM Adoption:
China is poised to play a significant role in the global adoption of eSIM technology. Following the launch of Apple’s eSIM-only phone and subsequent regulatory challenges, Chinese telecom providers began offering eSIM support in October. Pablo Iacopino, an analyst at GSMA, anticipates that domestic manufacturers such as Huawei, Xiaomi, Oppo, and Vivo will likely introduce more devices with native or supported eSIM functionality.
These manufacturers hold substantial market shares in economically sensitive regions across Asia and Africa. By gradually incorporating eSIM support across various price segments, they can cater to the growing domestic demand.
Iacopino noted, Chinese brands, when they see that the Chinese MNOs have launched eSIM services for the domestic Chinese market, they will probably start introducing eSIM across a wider range of smartphones, including medium and low-end market. He added that while an immediate shift to eSIM-only models is unlikely, manufacturers may initially support both physical and eSIM options before transitioning to exclusive eSIM models.
Current Usage and Future Projections:
Presently, even among devices equipped with eSIM capabilities, user activation rates remain relatively low. However, this trend is changing. Steffen Sorrell, head of research at telecom analyst firm Kaleido Intelligence, observed a 30% activation rate in eSIM-capable devices in 2024. The firm projects that this rate will escalate to 75% by 2030.
Advantages of eSIM for Travelers:
For international travelers, eSIM technology offers unparalleled convenience. Traditionally, travelers had to purchase physical SIM cards upon arrival in a new country, often navigating language barriers and varying regulations. With eSIM, users can seamlessly switch between carriers and data plans without the need for a physical SIM card, simplifying the process of staying connected abroad.
Startups like Kolet are capitalizing on this trend by offering user-friendly eSIM solutions tailored for travelers. Kolet partners with travel industry companies to provide eSIM services directly through booking confirmations, offering free trials and easy top-up options. This approach not only enhances the travel experience but also educates users about the benefits of eSIM technology.
Security Enhancements with eSIM:
Beyond convenience, eSIM technology also offers enhanced security features. Companies like Cloudflare have introduced eSIM solutions designed to secure mobile devices by encrypting data and providing identity-based connectivity. These advancements address growing concerns about mobile security, especially in corporate environments where data protection is paramount.
Conclusion:
The upward trajectory of eSIM adoption is a testament to its growing relevance in the modern digital landscape. As device compatibility expands and more consumers recognize the benefits of eSIM—particularly for international travel—the technology is poised to become a standard feature in mobile devices worldwide. With projections indicating a significant increase in activation rates over the next decade, eSIM technology is set to redefine how users connect and communicate across the globe.
