2020 Marks a Turning Point for eSIM Adoption: Implications for Connectivity Providers

In 2020, manufacturers are expanding eSIM support across a broader array of devices. According to Yuval Mayron, general manager of IoT at amdocs:next, this trend will compel connectivity providers to adapt quickly.

eSIM adoption accelerates beyond the “maturity” phase

After Apple, Google, Samsung, and Motorola embraced consumer‑grade eSIM in 2019, the technology entered a critical maturity stage. 2020 will see a wider ecosystem – mobile phones, wearables, laptops, and industrial IoT devices – adopt dual‑SIM and full eSIM functionality.

ABI Research projects that by 2022 there will be approximately 420 million eSIM‑enabled devices in circulation. Chipmakers and OS vendors are also integrating eSIM support into their latest releases, creating a market‑wide mandate for carriers to offer eSIM services.

Industrial IoT deployments, which have traditionally been offline or hard‑wired, will increasingly rely on eSIM for seamless connectivity, enabling automatic provisioning, effortless provider switching, and rapid service roll‑outs.

New business opportunities unlocked by eSIM

eSIM opens wholesale avenues for partners who previously had no presence in the ecosystem. For instance, hospitality chains can bundle a room with a local data plan and allow guests to scan a QR code months before arrival to pre‑download the eSIM profile.

These scenarios illustrate why out‑of‑the‑box collaborations are critical for new revenue streams. At the same time, carriers can attract customers away from competitors through competitive pricing and a superior digital experience.

Challenges for connectivity players as device diversity grows

With smaller manufacturers entering the eSIM space, especially in the Asia‑Pacific region, providers must navigate an expanding array of operating systems, onboarding methods, partner requirements, subscription models, and device configurations.

The scale of this new ecosystem means manual integration is no longer viable. Providers need an integrated, multi‑partner, multi‑device platform to manage the complexity.

Carriers who act now, while eSIM uptake is still nascent, can secure significant monetisation opportunities. Those who hesitate risk missing the wave. Embracing the disruption offers a host of possibilities for growth.

The author is Yuval Mayron, general manager of IoT, amdocs:next