Travel eSIM market set for growth as awareness remains low

A recent study from Proximus Global reveals that only 23% of consumers in the US, UK, and China have used an eSIM, highlighting a significant gap in adoption and awareness of the technology.

The survey, which covered over 6,500 adults across the three markets and was conducted by research firm YouGov, indicates that just 33% of all respondents were aware of what an eSIM is. Additionally, 42% of consumers were unable to confirm whether their mobile phones supported eSIM technology.

Awareness of eSIMs is lowest among US consumers, with 52% stating they have no knowledge of the technology. Chinese respondents showed marginally higher usage rates, with 27% reporting they had previously used an eSIM, compared to lower figures in the US and UK.

An eSIM, or embedded SIM, enables users to access mobile networks through a digital SIM card embedded directly in their device, eliminating the need for a physical card. This technology is available in many popular handsets, including those from Apple, Samsung, Google, and Huawei, and it offers a streamlined experience for consumers, especially when travelling abroad.

Travel eSIM interest

Despite the overall low rates of eSIM adoption and awareness, the study indicates a significant potential market for travel eSIM services. When informed about the potential benefits, nearly half (49%) of all surveyed consumers expressed openness to using an eSIM to manage mobile connectivity during international travel. This figure was even higher in the UK and China, with 56% and 60% of respondents, respectively, indicating interest in using a travel eSIM.

Consumers appear relatively unconcerned about whom they purchase travel eSIMs from. Over a third (36%) would consider obtaining a travel eSIM from non-traditional sources, such as supermarkets, airlines, or travel websites, in addition to mobile network operators. Companies including Revolut, Nord VPN, and Carrefour are already offering these services to travellers.

The commercial opportunity

"Our research highlights the significant potential for brands in the global travel eSIM market," said Surash Patel, Chief Revenue Officer at Proximus Global. "Demand for eSIM technology is rapidly increasing. Companies that act now will be well-positioned to capture substantial market share. This opportunity isn't limited to telcos; with the right partner, establishing an eSIM offering is straightforward. Retail and travel brands can leverage their customer base to drive adoption and explore cross-selling opportunities for travel eSIMs."

The survey findings indicate a substantial commercial opportunity for both telecommunications operators and businesses in related sectors, such as travel and retail. The minimal consumer knowledge but relatively high level of openness to adoption following education suggests that efforts to inform the public could have a significant impact on market uptake.

Jorn Vercamert, Chief Product Officer at Proximus Global, commented on the need for increased consumer education and service development:

"To secure leadership in the expanding global travel eSIM market, businesses must prioritise developing innovative eSIM-enabled services that cater to the evolving needs of travellers, while also focusing on consumer education. By closing the awareness gap, stakeholders can unlock the full potential of this untapped market opportunity."

As handsets and other connected devices increasingly support eSIM functionality, companies providing travel eSIMs may find opportunities by partnering across sectors or expanding their offerings into new retail channels. The willingness of consumers to purchase from a variety of sources may encourage collaboration between telecommunications providers and brands in the travel, retail, and digital services sectors.

The research underlines that improving consumer awareness and education remains essential if the potential for travel eSIM adoption is to be realised, with many consumers still unaware of the technical capabilities of their devices or of the existence of eSIM technology.

The report concludes that as travel patterns resume and evolve, particularly in the wake of increasing international mobility, the market for travel eSIM solutions presents a notable area for growth for companies willing to engage with and inform consumers about the benefits and utility of eSIM technology.