eSim Market Analysis

The growth of embedded-SIM e-Sim technology within the U.S. and Canada has been influenced by the extensive digital transformation of telecommunications and the move towards devices that are always connected. Originally designed for machine-to-machine M2M and Internet of Things IoT applications, e-Sims have swiftly transitioned into popular consumer products, aided by acceptance from mobile network providers and device creators. In North America, the e-Sim market serves two main purposes firstly, it offers enhanced convenience and flexibility for consumer gadgets smartphones, wearables, tablets by allowing device-agnostic activation and remote carrier changes; secondly, it facilitates enterprise and industrial applications connected cars, fleet tracking, smart home/IoT setups that need secure, stable, and connectivity. While the e-Sim landscape includes consumer, M2M, and IoT sectors, the consumer smartphone area holds a leading position in North America, with increasing interest in automotive and enterprise-IoT. The technology made its debut in the region during the late 2010s with initial e-Sim-enabled devices, and its growth accelerated significantly when prominent device manufacturers, especially Apple, released e-Sim-exclusive smartphone models in the U.S. and Canada in 2022. There are essentially three primary e-Sim categories in this region consumer smartphones, tablets, M2M connected devices, sensors, and IoT/automotive vehicles, industrial machinery. The user base ranges from regular smartphone consumers to businesses implementing IoT on a large scale. Technically, an e-Sim is a programmable SIM module integrated into the device that can be set up remotely with carrier information removing the requirement for changing physical SIM cards when switching providers or traveling. This addresses common connectivity challenges like the inconvenience of physical SIM replacements, roaming with multiple operators, and handling several lines on a single device.

In North America, this approach has been notably effective carriers like AT&T, Verizon Communications, and others have heavily invested in remote provisioning systems, allowing quicker activation and management of multiple profiles. According to the research report, " North America e-Sim Market Research Report, 2030," published by Actual Market Research, the North America e-Sim market is anticipated to grow at 12.16% CAGR from 2025 to 2030. In recent times, leading U.S. Tier-1 carriers have increased their support for e-Sims, with both AT&T and Verizon Communications making news for allowing complete e-Sim-only activations for smartphones and broader uses in fleet and automotive telematics. Manufacturers like Apple have also promoted adoption by releasing iPhones with e-Sim-only options in this area, making activation and roaming easier for users. From a technological standpoint, companies provide e-Sim management solutions, multi-profile capabilities, and remote provisioning tools designed specifically for North American networks. Each company offers distinct products Apple supplies consumer electronics featuring integrated e-Sims; Thales and G+D offer platforms for enterprise and IoT provisioning; and carriers deliver connectivity, flexibility in switching, and roaming infrastructure. There are significant growth chances in North America, especially in IoT connectivity like smart buildings and edge devices, enterprise mobility for remote working devices and multiple SIM profiles, and remote provisioning which allows digital onboarding without physical SIM cards. These sectors show promise since the area already has a high rate of smartphone use, robust development of 5G networks, and sophisticated regulatory and carrier systems, all creating favorable conditions for e-Sim expansion beyond just consumer smartphone use into enterprise and industrial markets..

Market Dynamic

eSimSegmentation

The automotive sector is the quickest to adopt e-Sim in North America, as vehicles now function as constantly connected platforms that need built-in, remotely managed connectivity rather than conventional removable SIM cards.

In North America, the swift transition towards connected vehicles, telematics, and over-the-air OTA services has resulted in an ideal situation for the adoption of e-Sim technology in the car industry. Manufacturers and primary suppliers throughout the U.S. and Canada are integrating e-Sim modules within new automobiles to facilitate sophisticated infotainment, fleet tracking, predictive maintenance, and vehicle-to-everything V2X communication, moving away from reliance on physical SIM cards that must be manually inserted and changed. The established automotive manufacturing environment in the region, combined with stringent regulatory requirements for telematics and emergency calling systems, along with extensive 4G/5G network infrastructure, significantly enhances the feasibility of e-Sim implementation. For instance, e-Sim technology allows for remote switching of carriers and management of profiles across various regions or networks, which is essential in the cross-border U.S. and Canada automotive markets and fleet activities. Moreover, since vehicles tend to have longer life cycles compared to smartphones, the embedded flexible connectivity proves to be more economical over time, reinforcing the argument for e-Sims in the auto sector. , the robust partnership among automakers, telecom firms, and connectivity service providers in North America fosters innovation and the standardization of e-Sim implementation in vehicles. As cars evolve into mobile data centers, remotely provisioned e-Sims not only facilitate basic connectivity but also enable firmware updates, shared mobility options, and in-car digital experiences all of which heighten the need for embedded SIM solutions. The automotive application, which focuses on high-value, recurring connectivity revenue instead of one-time device sales, is growing at a faster pace than other sectors in North America.

The connected car sector is rapidly expanding in North America for e-Sim technology because automobiles require integrated, remotely-managed cellular connectivity over their entire lifespan and e-Sim solutions provide this efficiently at a large scale.

In North America, the demand for car connectivity has evolved from just entertainment systems to comprehensive telematics, over-the-air updates, vehicle-to-everything communications, and fleet data analysis all of which necessitate a strong, secure, and continuous connection to the network. This region is at the forefront of e-Sim integration in the automotive field for instance, the market research report on e-Sim for Automotive indicates that North America will capture about 38% of the market by 2024, bolstered by a solid automotive manufacturing framework and well-developed 4G/5G networks. Several localized elements play a role U.S. and Canadian original equipment manufacturers are incorporating e-Sim modules into new vehicle designs, allowing for various operator profiles and remote management, which is essential for cross-border travel between the U.S. and Canada as well as for the long lifespan of vehicles. Regulatory demands and consumer expectations for connected safety and mobility services also bolster adoption, with e-Sim enabling effortless transitions between carriers or profiles without the need to physically change SIM cards. The capability to introduce new services, such as subscription-based connected car functionalities, remote diagnostics, and over-the-air updates, establishes continuous revenue streams for manufacturers and network providers thus presenting a strong business rationale. From a technical perspective, e-Sim facilitates the remote management of SIM profiles and endorses multi-IMSI multiple network identities and roaming without the need for changing physical cards, which suits vehicles that move across different jurisdictions or network areas. Therefore, the automotive sector is advancing quickly within North America's e-Sim landscape, as it aligns seamlessly with the region's robust connectivity infrastructure, regulatory framework, sophisticated OEMs, and the necessity for long-lasting, remotely-managed network-integrated modules.

The data-only category of e-Sim is the fastest-growing part of the North American market as it perfectly addresses the increasing need for standalone, high-bandwidth data connections tablets, laptops, IoT devices without the limitations of traditional voice/SMS services.

In North America, the growth of content-heavy applications and internet-connected devices beyond just smartphones has boosted the need for adaptable, data-only connectivity options and data-only e-Sims deliver just that. With a high number of smartphones, tablets, and portable WiFi devices in both the U.S. and Canada, both consumers and businesses are moving toward connectivity plans that emphasize data speeds, hotspot/tethering capabilities, and device flexibility rather than the older bundled voice and SMS-focused packages. In this situation, data-only e-Sims are well-suited since they eliminate the requirement for outdated voice network components, reduce costs no charges for voice minutes or SMS, and make it easier to set up across unlocked devices. For instance, many e-Sim plans in North America promote data-only options that cover the U.S., Canada, and Mexico enabling hotspot functionality, 5G/4G connections, and immediate activation. The rise of e-Sim-only smartphones especially in the U.S. and the growing support of e-Sims in tablets and wearables indicate that the environment is prepared for such versatile data-only options. Businesses implementing IoT and M2M technologies in North America also prefer data-only e-Sims, as these solutions streamline lifecycle management no physical SIMs to replace, remote setups are possible, and fewer rules concerning voice services. Furthermore, the region’s advanced 5G infrastructure and competitive network providers make data-only plans appealing and feasible. For travelers or users with multiple devices, data-only e-Sims provide smooth connectivity without the need for a local number or voice plan, simplifying logistics and improving convenience. The combination of rapid device diversification beyond just voice-centric phones, robust infrastructure, and the need for adaptable, lower-cost connectivity solutions has positioned data-only e-Sims at the leading edge of growth in North America's e-Sim market.

The hardware segment represents the most substantial and rapidly expanding solution type in the North American e-Sim market due to device makers incorporating e-Sim chips extensively into smartphones, tablets, wearables, and IoT devices, thus removing physical SIM slots and promoting significant growth.

In North America, the segment of the e-Sim market focused on hardware is dominant thanks to a combination of factors specific to the ecosystems of the U.S. and Canada. Leading manufacturers—especially those located in or catering to North America have quickly embedded e-Sim modules into their devices, opting for these over removable SIM cards. For instance, companies producing smartphones in the U.S. have introduced models that solely utilize e-Sim, which boosts the need for these embedded chips and modules. This surge in hardware is further supported by the high rate of smartphone usage, established 5G network systems, and robust consumer interest in connected devices throughout North America. Moreover, growth in hardware is fueled by various categories of devices smartphones, tablets, laptops, wearables, and a range of IoT products all necessitate embedded SIM technology; consumers and businesses in North America are significant users of these products. The hardware solutions sector is leading with North America representing a substantial portion. An al aspect embedding e-Sim technology during manufacturing allows devices to be thinner removing the need for a SIM tray, more secure featuring a built-in Secure Element in the chip, and enables over-the-air profile provisioning crucial in North America due to high demand for remote activation, dual-SIM, dual-profile functions, and multi-device connections. Furthermore, the readiness of regulations and carriers in North America also supports OEMs to adopt e-Sim technology early, leading to increased shipments. North America’s combination of high device volumes, early launches of e-Sim-enabled devices, a strong ecosystem of carriers and developers, and hardware manufacturers embedding e-Sim technology across different device categories makes the hardware solution segment the leader and the fastest-growing in this region.

eSim Market Regional Insights

The United States is at the forefront of the North American e-Sim market due to its superior telecom framework, early adoption of e-Sim-compatible devices, and a robust ecosystem of network providers, device makers, and IoT pioneers encouraging extensive commercialization.

The U.S. is the leading player in the North American e-Sim market because of its prompt embrace of technology, strong regulatory backing, and a system that fosters innovation. As one of the biggest markets for smartphones and IoT gadgets, the U.S. serves as a testing ground and launch site for e-Sim technology, primarily led by major carriers like AT&T, Verizon, and T-Mobile, who have aggressively introduced e-Sim activation services nationwide. These providers allow effortless remote provisioning, switching between multiple networks, and solutions for roaming features that align perfectly with the essential advantages of e-Sim. The introduction of Apple’s e-Sim-only iPhone models in the U.S. in 2022 represented a pivotal change, making e-Sim widely accessible for millions and creating a ripple effect throughout the telecom and manufacturing sectors. The U.S. boasts a highly advanced 5G and IoT framework, facilitating e-Sim support for emerging sectors like automotive telematics, connected wearables, and enterprise IoT applications. Car manufacturers such as Tesla, Ford, and General Motors are integrating e-Sims into their connected vehicles for functionalities such as real-time diagnostics, navigation, and over-the-air OTA updates positioning the automotive industry among the fastest adopters. At the same time, businesses are utilizing e-Sim for remote device management, connectivity, and secure setup of business-related devices. From a regulatory standpoint, the Federal Communications Commission FCC has sustained an open regulatory framework that fosters interoperability and competition among e-Sim service providers. Along with a knowledgeable consumer base, high smartphone penetration, and significant research and development investments from tech giants like Apple, Qualcomm, and Google, the U.S. has emerged as the center of e-Sim innovation. , the nation represents the largest portion of North America’s e-Sim revenue, establishing both the speed and the course for the region’s digital connectivity evolution.