A new Juniper Research study indicate that the number of global eSIM (embedded SIM) module shipments will increase from 430 million in 2020 to 822 million in 2025; representing a growth of 90%.
The research identified the public sector as the fastest-growing area, with shipments of eSIM-enabled public sector sensors expected to increase by 500% over the next four years, as smart city services benefit from the flexibility of the growing eSIM ecosystem. An eSIM (embedded SIM) or digital chip fitted in a device as part of its components and allows the user to activate a cellular plan from a mobile service provider or carrier without having to use a physical SIM card.
The new research found that smart street lighting sensors will account for 88% of eSIM shipments within the public sector by 2025. The report predicts that smart city providers will leverage cellular networks, underpinned by eSIMs, as gateways to low-power connections for the monitoring and management of smart city services.
The report predicts that the US will remain the largest market for public sector eSIM adoption; accounting for 30% of eSIMs installed in devices by 2025. It highlighted that operators in North America have led the development and roll-out of 5G networks, which has enabled new levels of city-wide automation and information sharing in smart cities.
The study urges eSIM vendors to develop 5G-capable modules to capitalize on the growth of next-generation 5G standalone networks, which enable the deployment of 5G-enabled eSIMs within smart cities.
Research author Scarlett Woodford
To support smart city initiatives, eSIM vendors must invest in the development of 5G-enabled form factors. By combining flexible network connectivity with high bandwidth transmission and reduced latency, 5G-capable modules will enable local authorities to monitor connected sensors in real-time and allocate resources accordingly.
