The Rise of eSIM: A Game Changer for 2025 and beyond!

The rise of eSIM is transforming the telecom industry, offering numerous advantages and new business opportunities. But why is it gaining so much attention, and how can your business benefit from it? 

Our Head of MVNx Product Marketing, Lyes Tadjer, shares his insights on the strategic advantages of eSIM, its key advantages, market potential, and its pivotal role in shaping the future of connectivity.  

Before diving into the revolution eSIM brings, let’s first understand what it is. eSIM is a technology that integrates traditional SIM functionality directly into devices. Unlike physical, removable SIM cards, eSIMs are programmable and remotely activated, empowering users to switch carriers effortlessly without ever needing a new card. It’s a game-changer for seamless, flexible connectivity!  

Global adoption of eSIM

The global adoption of eSIM is gaining remarkable momentum. According to GSMA Intelligence, in 2024, 271 consumer device models support eSIM, with eSIM deployments spanning 123 countries and more than 440 mobile service providers (including MVNOs) offering eSIM. Yet, two notable exceptions stand out: the U.S., which catalyzed the market with eSIM-only devices two years ago, and China, where eSIM remains unsupported. So, what’s the next major catalyst?  

All indicators suggest that 2025 will mark a turning point, with the widespread rollout of eSIM-only devices, particularly in Europe. The real question is: are you prepared to capitalize on the opportunities eSIM unlocks? 

How can businesses leverage the rise of eSIM by becoming an MVNO?

MVNOs are uniquely positioned to drive the adoption of eSIM, particularly for international roaming, where MNOs have not fully capitalized on the technology. This creates an exciting opportunity for MVNOs to differentiate themselves and deliver innovative consumer experiences. For instance, MVNOs can go fully digital with eSIM-only offers, providing seamless acquisition journeys. Alternatively, they can launch eSIM-first offers or focus on the highly successful “travel eSIM” use case, as demonstrated by Ubigi. Innovation doesn’t stop there. MVNOs can create tailored offerings, such as temporary packages, prepaid plans, or exclusive 5G bundles, to stand out in a competitive market.  

With the growing adoption of eSIM-compatible devices and increasing awareness, the potential for MVNOs to innovate is immense; The latest eSIM standard bridges consumer and IoT use cases, unlocking significant opportunities for innovation in the IoT market. 

The automotive industry has already showcased how eSIM can be a game-changer for OEMs, but the growth potential extends far beyond automotive. Sectors like manufacturing, industrial operations, transportation and logistics, utilities, and energy are all gearing up for significant digital transformation and much of that investment will require eSIM-driven cellular connectivity. This is where MVNOs can secure a slice of the market. 

B2B Partnerships & Challenges

For MVNOs, eSIM is not just a consumer play—it’s a strategic advantage for expanding B2B collaborations. Many enterprise customers already rely on MVNOs for physical SIM solutions, creating a natural pathway to deepen partnerships with eSIM-based offerings.  Enterprises are expecting MVNOs to integrate these solutions for them, presenting a significant opportunity. 

You might be wondering if eSIM comes without challenges. The reality is that, like any transformative technology, it does present some challenges. For consumers, the main challenge is increasing awareness of eSIM—a barrier that’s already starting to fade with the rollout of eSIM-only devices. As MNOs ramp up the promotion of their eSIM offerings, consumer understanding will naturally follow. 

For enterprises, the challenges are primarily technical: integrating eSIM seamlessly into existing solutions, aligning it with other systems, and customizing it to meet specific requirements. However, these obstacles are far from insurmountable, and MVNOs are uniquely positioned to address them. How can this be achieved? The key lies in building strong partnerships with eSIM providers and platforms that have a proven track record of successful implementations across diverse use cases. Focus on partners who offer flexibility, adaptability, and a deep understanding of your unique needs. 

While challenges exist, actionable solutions are within reach. MVNOs have always thrived in the face of challenges, turning them into opportunities. With eSIM, the possibilities are immense – so, are you ready to lead the eSIM revolution? Partner with us to make this technology your competitive advantage.