Global Shipments of embedded SIM (eSIM) technology reached 605 million units in 2025, an 18% year-on-year increase, according to data from the Trusted Connectivity Alliance (TCA). This growth is attributed to expanded operator support and manufacturers integrating the technology into a wider range of smartphones, accelerating mainstream adoption.
The TCA, which evolved from the SIMalliance in 2020, reported that its members accounted for 85% of the global eSIM hardware market, shipping 523 million units during the year. A significant indicator of real-world usage, consumer eSIM profile downloads surged by 43%.
Physical SIM Market Maintains Strength
Despite the rapid expansion of eSIM, the traditional physical SIM card market remains substantial. The TCA estimates the total available market for physical SIMs reached 3.5 billion units in 2025. Member companies reported a 6% year-on-year increase in delivered SIM volumes, with growth recorded in Europe, the Middle East, Africa, and parts of Asia.
These figures suggest the mobile industry will operate in a hybrid SIM environment for several years, rather than undergoing an immediate transition away from physical cards.
Smartphones Drive Mainstream eSIM Adoption
Smartphones are the primary driver of eSIM expansion. The capability is now increasingly common in low- and mid-range devices, significantly broadening the addressable market. Manufacturers, including Apple, have launched eSIM-only flagship models outside North America, signaling confidence in the maturity of the technology and supporting network infrastructure.
While North America remains the most mature market, adoption accelerated globally. eSIM uptake doubled in both the Middle East and Africa and in South America during 2025, highlighting increasing traction in emerging markets, though local operator rollout in these regions still trails North America.
IoT Growth Fueled by New Standard
Further growth is anticipated in the Internet of Things (IoT) sector as new industry standards simplify eSIM deployment. The GSMA eSIM IoT specification, known as SGP.32, is designed for large-scale IoT deployments. It aims to simplify remote provisioning and management, making it easier for enterprises to deploy large fleets of connected devices.
Guido Abate, chair of the TCA board, stated, “Global eSIM growth accelerated in 2025 as the benefits of the technology were realized across more regions, use cases and industries. With deployments and adoption set to continue rising, ongoing industry efforts to advance enabling standards and infrastructure will be key.”
5G SIM Deployments Show Strong Increase
The report also highlighted a 33% year-on-year increase in recommended 5G SIM deployments among TCA members. These SIMs are designed to support enhanced security, privacy, and functionality in 5G and standalone 5G networks, enabling more advanced services.
India recorded the highest shipment volumes, reflecting its rapidly expanding 5G market. North America remained the second-largest market, while Europe saw steady growth. The Middle East and Africa recorded the fastest percentage growth, indicating rising demand for advanced connectivity in emerging markets.
Sustainability Initiatives Gain Traction
The SIM industry is concurrently advancing efforts to reduce its environmental impact. In 2025, 45% of SIM volumes reported by TCA members were shipped in the smaller half-SIM format, up from 37% in 2024, reducing plastic use and packaging waste.
Furthermore, more than 40% of SIM cards produced in Europe were manufactured using eco-friendly raw materials. This shift is gaining momentum in developing markets; in the Middle East and Africa, the number of SIMs produced with eco-friendly materials more than doubled year-on-year, while shipments of half-SIM formats increased by 40%.
Industry expectations point toward eSIM steadily becoming the default activation method in the coming years, particularly as more mid-range Android devices incorporate the technology. The ongoing refinement of standards like SGP.32 for IoT is also expected to unlock new waves of deployment in enterprise and connected device markets worldwide.
Source: Trusted Connectivity Alliance
