RedteaMobile, Telna, growing fast with software-based eSIM whereas, ARM, Truphone, GigSky and Qualcomm are the dark horses with their integrated SIM (iSIM) solution in eSIM enablement space
Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego
July 11th, 2019
Global shipments of eSIM capable devices (including vehicles) grew 63% year-on-year (YoY) in 2018 to 364 million units and estimated to reach close to two billion units in shipments by 2025, according to the latest research from Counterpoint’s ETO (Emerging Technology Opportunities) Service. The eSIM adoption is poised to grow across several connected devices over the next decade leading to the expansion and growth of eSIM value chain.
Commenting on the growth of eSIM value chain, Satyajit Sinha, Research Analyst at Counterpoint Research, noted, “There is a rise of eSIM enablement companies offering a variety of eSIM solutions. This includes broadly three categories, firstly, software-based eUICC in TEE (Trusted Execution Environment). Secondly, the eUICC embedded in a hardware-based MFF2 or Wafer Level Chip Scale Packaging (WLCSP), miniaturized leadless package form-factors soldered into the PCBs. Thirdly, the newer category of integrated eSIMs, also called iSIM or iUICC, where the eUICC is integrated into a secure enclave within the System-on-Chip (SoC) itself. So far, only the hardware-based MFF2 and WLCSP form-factor is GSMA compliant and meets the security standards outlined in GSMA’s SGP.01/02/21/22 specs. The suppliers of these chips also need to be GSMA SAS-UP (Security Accreditation Scheme for UICC Production) certified. However, this has not stopped the ecosystem players, which include device OEMs, component vendors, and operators, to adopt other proprietary software based eSIM solutions, which have also seen decent adoption, especially in scale markets such as China.”
Sinha, added, “Companies such as Gemalto, G+D – Giesecke & Devrient, IDEMIA, VALID, and Workz are the top hardware-based eSIM providers with the MFF2 form factor. Whereas, ST Micro and NXP are the leading suppliers of WLCSP form-factor. Infineon is offering an innovative miniaturized leadless package form-factor. Companies such as Truphone, ARM, Qualcomm, RedteaMobile, Telna, GigSky, roam2free, and others, are partnering with OEMs, operators, and chipset vendors to drive software based eUICC adoption either in TEE or integrated into the SoC.”
Taking a holistic approach to understanding the growing eSIM ecosystem, we have evaluated these eSIM enablement players based on eight different parameters from security to certifications to the number of partnerships, customer wins across different categories and so forth.
Sharing results of the evaluation, Peter Richardson, Research Director at Counterpoint Research, noted, “The traditional SIM card vendors have maintained the lead when it comes to eSIM enablement. Gemalto and G+D are leading the pack due to their diverse partnerships across the value chain, GSMA certifications, and end-to-end eSIM solutions. They are followed by other SIM vendors such as IDEMIA, VALID and Workz Group in fourth, fifth, and seventh positions respectively.”
Semiconductor players such as ST Micro, NXP, and Infineon have also seen healthy adoption of their eSIM solutions which are shipping in good volumes, especially in smartphones and automotive. Though, these players, unlike SIM card vendors, lack the end-to-end eSIM offering (eSIM enablement and management) as well as direct operator partnerships.
The software-based eUICC providers such as RedteaMobile, and Telna have done exceedingly well with wins across consumer (smartphones) and IoT applications. They are steadily challenging the leaders. However, players such as ARM, Truphone and GigSky (via the Simless acquisition) are offering a compelling iSIM solution along with an iSIM management platform in tow. They could be the dark horses as iSIM adoption rises. Qualcomm is another player that can accelerate iSIM adoption across connected devices.”
Exhibit 1: eSIM Enablement Scorecard Evaluation and Analysis
Source: eSIM Ecosystem – Opportunities, Trends, Evaluation, Analysis, and Outlook
The comprehensive and in-depth report on “eSIM Ecosystem – Opportunities, Trends, Evaluation, Analysis, and Outlook” are part of our Counterpoint’s ETO Service. This report is available for download here
Background:
Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.
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