The momentum behind eSIM continues to grow, with GSMA Intelligence reporting an increase in the number of MNOs using eSIM of 30% in 2021compared to 2020. This is following a 60% growth in 2020 compared to 2019. The growth is in the number of MNOs implementing an eSIM platform for the first time–meaning that future growth for eSIM looks very bright.
Though so many MNOs have adopted an eSIM platform in the last 5 years, there are still a large number yet to take the dive. Replacing a technology as dependable and influential as traditional SIM is not something that happens overnight. Companies in the process of establishing their device identity strategy may be left wanting if they lag behind other MNOs able to attract customers with a phone contract on an eSIM. Recently, AT&T have revealed their newfound eSIM capabilities demonstrating the ease by which an eSIM phone can be set up, the transferring of a number from one AT&T phone to another and moving an unlocked phone from a competitor’s network to their own.
eSIM growth potential is also present in developing markets, where growth in mobile phone use is on the increase–growth which has stagnated in more mature markets. Technology advisory firm Gartner reports that sales of mobile phones in Sub Saharan Africa and MENA increased by 6% and 5% respectively between 2018 and 2021 whilst markets in Europe and America stayed flat. In Africa, a number of countries have low penetration which presents opportunity for potential growth as phone ownership becomes more ubiquitous.
The broader use of IoT in electronics and M2M applications, the trend in connected vehicles and 5G all need versatile technologies for device identificationable to shift with consumer needs. The growth in connected device use in established and emerging markets alike will be significant if the SGP.32 architecture for IoT is published, and eSIM providers able to comply with the architecture will be in a position to benefit from this growth.
The device identity landscape of the future will call for technology providers of every shape and size. There will be room for disruption, and no single vendor will be in a position to meet diverging needs. Nordic eSIM is one such provider, with the expertise, solution and personnel to respond as the market evolves.
Nordic eSIM is an eSIM specialist on the outskirts of Copenhagen poised to build on recent performance in the sector. The company’s recent growth is backed by 20 years’ experience in SIM and Telecom markets. Along with a recent achievement of GSMA security compliance, Nordic has a competitive edge over its competition.
Firstly, Nordic eSIM is one of the few companies in this space doing eSIM and nothing else. If you go to them with your eSIM needs, you know that they are putting their resources into tech that you are going to be using. This is unlike some of the more recognisable companies who can do eSIM, but whose specialties are spread across a broader range of capabilities.
As well as giving them a technical edge, this specialisation leaves them available to adapt their technology in an industry where technologies evolve.
This agility offers a further two advantages. Firstly, it sets them up to strike deals in some of the fastest-growing global telecommunications markets. The telecommunications industries in fast-growing emerging regions are typically less consolidated meaning small companies with eSIM needs operate alongside the larger names. This includes independents and subsidiaries of larger European or American Firms. These providers will benefit from eSIM vendors able to modify their offering to precisely fit their need.
Secondly, agility will be needed when eSIM makes the transition from consumer use to wider use in M2M applications for IoT and 5G. Companies specialising in eSIM will be able to adjust their platforms when architectures such as SGP.32 are published. An ability to respond to changing needs can get eSIM platforms sold into the wireless devices of the many more IoT device manufacturers. The gains to be had in provision of device identity technology such as eSIM from the IoT market are considerable, provided the technologies are adapted to the need.
As you would expect from a company whose sole focus is eSIM, Nordic eSIM is certified to the GSMA Security Accreditation Scheme for Subscription Management (GSMA-SAS-SM). The data on Nordic’s servers are therefore as safe as they can be and the company keeps pace with GSMA security compliance needs as they are updated. The company also has its sights set on complying with the GSMA SGP.32 IoT architecture via SMTP protocol and the doors that this may open.
The company is one of the first of its kind achieving full GSMA-SAS SM certification in both its consumer and machine-to-machine (M2M) cloud-based eSIM platforms. Having certification for both consumer and M2M markets gives the company an edge in providing an agile eSIM setup ready to pounce when the eSIM market goes into its future growth phases.
Nordic eSIM is one of only 3 vendors having fully certified both consumer and M2M platforms in the cloud. The fact that both platforms are launched in the cloud gives Nordic an edge when it comes to agility and scalability. Being a purely cloud-based platform means that system updates and changes to the platform can be made in response to changing customer needs. Being on the cloud also means that the company’s growth potential is not limited by in-house hardware constraints.
Future growth of Nordic eSIM will be on the back of recent continuous growth. The last two years have seen consistent growth, and 2022 is expected to be even better. Market research firms report expected growth in the USD 7-7.5 billion global eSIM market at over 10% year-on-year until the end of the decade. Nordic eSIM’s international reach positions them well to explore these opportunities.
