eSIM adoption is on the rise thanks to travel and device compatibility

eSIM technology, despite being available for over a decade, had a modest global adoption rate of around 3% last year, expected to surpass 5% this year. However, industry analysts, startups, and investors remain optimistic about its growth, largely driven by increased travel and expanding device compatibility. The adoption has been boosted by major phone manufacturers like Apple and Google integrating eSIM features into their devices, with Apple notably releasing an eSIM-only iPhone 17 model in multiple countries. Smartphone penetration with eSIM capabilities reached 23% in 2024, with the U.S. leading at 41%. While initially a feature of premium devices, eSIM is gradually appearing in mid- and low-range smartphones, especially as Chinese manufacturers such as Huawei, Xiaomi, Oppo, and Vivo begin supporting eSIM following China's telecom providers' recent rollout of eSIM services. Travel is a significant catalyst for eSIM adoption, with over half of eSIM users employing it for connectivity while abroad, appreciating its