Analysts See Rapid Rise Ahead as e-SIM Adoption Accelerates
Despite being available in the market for a decade, global e-SIM adoption stood at just 3% in 2024 and is projected to exceed 5% in 2025. Yet analysts, startups, and investors believe that e-SIM technology is poised for rapid growth—driven by travel needs and wider device support, according to a report by TechCrunch.
Smartphone manufacturers have played a major role in driving eSIM demand. The Pixel 2 and iPhone XR were among the earliest devices to support eSIM back in 2017–18. Apple transitioned completely to eSIM in the United States in 2022, and Google followed suit with the Pixel 10 series this year. In 2025, Apple went even further by launching e-SIM-only models of the iPhone Air and iPhone 17 series in more than 11 countries. Without a physical SIM slot, these devices can accommodate slightly larger batteries.
According to Counterpoint data, only 23% of smartphones worldwide featured e-SIM in 2024, compared to 41% in the United States. By the first half of 2025, various brands had introduced more than 60 eSIM-supported devices. Analysts say Chinese brands—Huawei, Xiaomi, Oppo, Vivo—are expected to quickly introduce e-SIM in mid-range and budget models now that eSIM services have become available in China.
Travel remains the biggest driver of e-SIM growth. GSMA reports that 51% of eSIM users are travelers. Startups such as Airalo, Holafly, Nomad, eSIM.me and Truphone’s Truly have expanded rapidly due to this demand. Many first-time travelers adopt e-SIM for convenience abroad, and upon returning home, seek to switch to their local operators' e-SIM services as well.
Investment in the sector is also rising. Holafly has sold more than 15 million e-SIMs since 2018, while Airalo became a unicorn after securing USD 220 million in funding in 2024. Meanwhile, Nord’s “Saily” app surpassed one million users within the same period.
However, challenges persist. Lack of awareness, trust issues, and installation difficulties remain barriers. Most services require scanning a QR code using a second device, which can be inconvenient while traveling. Some operators are also slow to roll out eSIM due to legacy infrastructure limitations.
Still, analysts expect e-SIM activation rates to exceed 75% by 2030. With travel demand, broader smartphone support, and the arrival of affordable devices, eSIM is projected to become mainstream within the next few years.
DBTech/BMT/OR
