India is moving toward eSIM (embedded SIM) and iSIM (integrated SIM) technology, but adoption remains far behind global trends, experts believe.
These technologies promise flexible connectivity, easier device management, and reduced environmental impact. Yet high costs, low consumer awareness, and unclear regulations limit uptake.
“The transition is happening, but at a gradual pace. The challenge isn’t technology, it’s affordability, awareness, and ecosystem readiness,” said Sachin Arora, Head of Connectivity & IoT at Giesecke+Devrient (G+D) India, in an interview with BusinessWorld.
eSIM and iSIM: What They Bring
Unlike traditional SIM cards, eSIMs (embedded SIMs) can be activated remotely, allowing users to switch networks without physically replacing the card. iSIMs (integrated SIM) go further by embedding SIM functionality directly into the device’s chipset.
“The shift is significant for IoT and industrial use cases, where devices operate remotely or at scale. It simplifies lifecycle management and reduces physical interventions,” Arora explained.
The SIM’s core role connecting and authenticating devices remains unchanged. The difference lies in how it is built and managed.
Global Growth vs. Indian Challenges
Globally, eSIM adoption is accelerating. The market was valued at approximately USD 1.22 billion in 2023. It is expected to reach USD 6.29 billion by 2030 and grow at a rate of 20% from 2024 to 2032. Consumer awareness is also high, with roughly 70% of users familiar with the technology.
In India, however, only 10–15% of smartphones sold currently support eSIM, and awareness remains low, at about 35%. Among those who are aware, only 39% actively use eSIMs, with most still preferring physical SIMs.
Most eSIM-compatible devices in India are high-end smartphones priced above ₹20,000, while mid-range Android devices dominate the market.
“The market remains heavily Android-dominated. Until OEMs (Original Equipment Manufacturer) redesign supply chains for eSIM-enabled devices and affordability improves, adoption will stay niche,” Arora said.
Affordability, awareness, and ecosystem readiness remain the biggest hurdles for mass adoption.
Industrial IoT Moves Faster
While consumer adoption is slow, industrial and machine-to-machine (M2M) devices are progressing quickly. eSIMs allow devices to work globally without juggling multiple physical SIMs.
A telematics or utility device designed in India can be activated in another country by downloading a local operator profile, reducing logistics and simplifying scaling.
Industrial IoT adoption is outpacing consumer uptake, showing immediate benefits that could pave the way for broader adoption.
Sustainability and Security
eSIMs can reduce plastic use and emissions from shipping SIMs, though these benefits remain largely theoretical in India until mass-market phones adopt them.
Security is also stronger: eSIMs are tamper-resistant and use encrypted, certified platforms.
“Unless eSIM-enabled phones enter the mass market and cost structures adjust, these benefits remain largely theoretical,” Arora said.
What’s Ahead
India’s slow adoption comes down to pricing, unclear regulations, and limited coordination among OEMs, telecom operators, and policymakers.
“Without incentives or mandates for eSIM readiness and without OEMs rebuilding manufacturing processes, the shift will remain slow,” Arora said.
Standards like GSMA’s SGP32 are expected to make adoption easier and more consistent. While companies continue to develop future-ready solutions, Arora expects India’s pace to remain gradual.
Functionally, the SIM remains a secure identity element, with innovation focused on how it is embedded, managed, and scaled sustainably.
The Indian eSIM market, valued at $113.1 million in 2023, is projected to grow to $195.4 million by 2030. While adoption is slow, the country lays the foundation for a more flexible, connected, and sustainable digital future.