eSIM technology has been available for about a decade, yet global adoption was only around 3% last year and is expected to just cross 5% this year. Despite these modest figures, analysts, eSIM startups, and investors remain optimistic about its growth, largely due to the impact of travel.
Device compatibility is a key factor driving this optimism. Phone makers began launching devices with eSIM features in 2017 and 2018, with notable models like the Pixel 2 and iPhone XR. In 2022, Apple removed the physical SIM slot to go eSIM-only for the U.S. market, and Google followed with the Pixel 10 this year. Apple further advanced this trend by releasing the eSIM-only iPhone Air and offering an eSIM-only model of the iPhone 17 series in over 11 countries. A key advantage of these eSIM-only phones is their slightly larger battery life compared to models with a physical SIM slot.
According to analytics firm Counterpoint, smartphone penetration with eSIM was just 23% in 2024. The U.S. is the strongest market, with 41% of devices launched in 2024 having eSIM capabilities. Until recently, eSIM was a feature of top-end devices, but that is slowly changing. GSMA reported that in just the first half of 2025, brands launched more than 60 eSIM-enabled smartphones.
China could be a major factor in eSIM adoption. This October, following the launch of Apple’s eSIM-only phone and some initial hiccups, China’s telecom providers began offering eSIM support. Analysts suggest local manufacturers like Huawei, Xiaomi, Oppo, and Vivo will likely launch more eSIM-native or supported devices. These manufacturers hold a significant share in economically sensitive markets across Asia and Africa and could gradually include eSIM support across various price ranges to meet domestic demand.
Currently, even among devices with eSIM support, few people actively use the technology, but that is changing. Research indicates a 30% activation rate in devices with eSIM capabilities in 2024, with estimates that this rate will rise to 75% by 2030.
Travel is a significant catalyst for eSIM growth. A GSMA survey found that 51% of people using eSIM do so for travel. It is also considered a more secure solution, as eSIM hardware is often bound with secure elements that are difficult to tamper with. These benefits have positively impacted eSIM provider startups like AirAlo, Holafly, eSIM.me, Nomad, and Truely. Even security provider Nord launched an eSIM service called Saily. Most of these companies have seen customer base growth, largely thanks to travel.
GSMA notes that travel is proving to be a strong catalyst, as frequent travelers prefer devices with eSIM support and may adopt eSIM for long-term use. People often experience eSIM for the first time while traveling, and those who like the experience may later request their home network providers to switch from a physical SIM.
Startups in the travel eSIM space have seen notable growth. Truely reported serving over 70,000 travelers in the last two years, with order growth doubling this year. NordVPN stated its Saily eSIM app reached a seven-digit user base after launching in March 2024. Holafly said it has sold more than 15 million eSIMs since 2018, surpassing $500 million in total revenue, with $200 million earned in 2024 alone.
Investor interest is strong. AirAlo’s $220 million funding round in July made it a unicorn and marked the most notable eSIM investment in recent years. French eSIM startup Kolet secured $10 million in Series A funding. Investors note that while concentration is currently on travel-related eSIM startups, there may be future opportunities in domestic markets as well. The market is growing, but investors will look for long-term viability, customer loyalty, quality of coverage, and effective marketing partnerships.
Several challenges remain for broader adoption, including education, trust, and ease of use. Many people simply do not know what an eSIM is. Companies actively work on user education, often partnering with influencers to explain the technology. Furthermore, the process of activating an eSIM, which typically involves scanning a QR code from a second device, can be cumbersome, especially for travelers arriving in a new country. Industry players recognize the need to streamline this process.
Additionally, some network providers face slower adoption due to legacy technology and systems. They will need to fully digitalize the switching process to allow customers to adopt eSIM without visiting a store.