eSIM Adoption Growing: Travel & Device Compatibility

The Current State of eSIM Technology

The eSIM technology itself has existed for approximately ten years. However, widespread global adoption has been relatively slow, reaching only around 3% last year.

Current projections estimate that eSIM adoption will surpass 5% this year. This indicates a gradual, but not yet rapid, increase in usage.

Factors Driving Optimism for eSIM Growth

Despite the current adoption rates, industry experts, companies specializing in eSIM solutions, and investors maintain a positive outlook regarding the future of eSIM technology.

A significant driver of this optimism is the increasing demand from travelers. The convenience offered by eSIM for international roaming is a key factor.

The Role of Travel in eSIM Adoption

Travel is increasingly recognized as a primary catalyst for the expansion of eSIM usage.

The ability to easily switch between mobile networks without physically swapping SIM cards appeals strongly to individuals who frequently travel internationally.

This convenience is expected to fuel further growth in eSIM adoption rates in the coming years.

The Growing Compatibility of Devices with eSIM Technology

A significant driver of eSIM adoption is the increasing number of mobile phone manufacturers integrating eSIM functionality into their devices.

The initial wave of smartphones equipped with eSIM technology appeared between 2017 and 2018, notably including models like the Google Pixel 2 and the Apple iPhone XR. In 2022, Apple made a substantial move by removing the physical SIM card slot entirely for U.S. market iPhones, opting for eSIM exclusively. Google subsequently followed this trend with the Pixel 10 this year.

Further expanding on this, Apple recently introduced the eSIM-only iPhone Air and made an eSIM-only version of the iPhone 17 series available as an option in over eleven countries. A key benefit of these eSIM-only phones is a slight increase in battery life compared to models that still utilize a physical SIM.

According to data from the analytics firm Counterpoint, smartphone penetration with eSIM capabilities was only 23% in 2024. The United States currently leads the market in eSIM adoption, with 41% of devices launched in 2024 featuring eSIM support.

Historically, eSIM has been primarily found in higher-end devices, but this is undergoing a shift. The GSMA reports that over 60 eSIM-enabled smartphones were launched by various brands in just the first half of 2025.

China represents a potentially large catalyst for wider eSIM adoption. Following the release of Apple’s eSIM-only phone and initial challenges, Chinese telecommunications providers began offering support for eSIM technology this October. GSMA analyst Pablo Iacopino suggests that domestic manufacturers such as Huawei, Xiaomi, Oppo, and Vivo are also expected to release more devices with native eSIM support or eSIM compatibility.

These manufacturers hold a considerable market share in price-sensitive regions of Asia and Africa. They are positioned to progressively integrate eSIM support across various price points, catering to local demand.

Iacopino stated, “When Chinese brands observe the launch of eSIM services by Chinese MNOs within the domestic market, they will likely begin incorporating eSIM into a broader range of smartphones, including mid-range and low-end models.” He further noted, “However, an immediate transition to eSIM-only models is unlikely; they will initially support both physical and eSIM before eventually shifting towards eSIM-only options.”

Currently, despite the presence of eSIM support in many devices, actual usage remains relatively low, though this is changing. Steffen Sorrell, head of research at Kaleido Intelligence, a telecom analysis firm, reported a 30% activation rate for eSIM capabilities in devices during 2024. Their projections indicate this rate will increase to 75% by the year 2030.

Travel Significantly Boosts eSIM Adoption

eSIM technology is rapidly gaining traction as a convenient connectivity solution for travelers. A recent survey conducted by GSMA indicates that over half – 51% – of eSIM users leverage the technology specifically for travel purposes.

Furthermore, eSIMs offer enhanced security features. Often, the eSIM hardware is integrated with secure elements, which significantly reduces the risk of unauthorized manipulation or tampering.

This positive trend has benefited numerous eSIM provider startups, including Airalo, Holafly, eSIM.me, Nomad, and Truely. Even Nord, a Lithuania-based security company, has entered the market with its own eSIM service, Saily.

These companies are experiencing substantial growth in their customer base, largely driven by the increasing demand from travelers.

eSIM Growth is Fueled by Frequent Travelers

According to GSMA, travel is currently a primary driver of eSIM adoption. Frequent travelers are increasingly choosing devices that support eSIM functionality.

Moreover, many are adopting eSIM for ongoing use, extending beyond their initial travel experiences.

Iacopino of GSMA explained to TechCrunch that initial exposure to eSIM often occurs during travel. Users who have a positive experience are then more likely to request eSIM support from their domestic network providers.

First-Time Users and Continued Preference

Airalo, a leading eSIM provider with over six years of operation, reports that its app introduces many users to eSIM technology for the first time.

A company survey conducted last year revealed that 85% of Airalo users were experiencing eSIM for the very first time.

“Currently, approximately 15% of travel connectivity is facilitated by eSIMs, and this figure is consistently increasing,” stated Airalo CEO Bahadir Ozdemir.

“Once individuals experience the convenience of eSIM connectivity, they generally prefer it over traditional physical SIM cards.”

Accessibility and Network Provider Response

Ozdemir highlighted that while many telecom operators offer eSIM support, it can be difficult for customers to discover this option.

Apps like Airalo simplify the process and increase accessibility.

Recognizing the travel eSIM market, network providers are also taking action. For example, Vodafone collaborated with UEFA to launch a dedicated eSIM for attendees of football matches throughout Europe.

Expanding Market and Investment in eSIM Technology

Startups specializing in eSIMs for travel are experiencing significant expansion. Truely reports having assisted over 70,000 travelers in the past two years, and has observed a doubling of order volume this year. Following a $2 million extension to their funding in June, the company is actively pursuing partnerships with both financial technology firms and travel applications, alongside exploring potential collaborations with governmental bodies across various regions.

User Growth and New Plans

NordVPN’s Saily eSIM application has rapidly gained traction, reaching a seven-figure user base shortly after its March 2024 launch. The company has also introduced an "Ultra" subscription tier priced at $60 monthly, providing comprehensive global coverage.

Holafly has achieved substantial sales, distributing more than 15 million eSIMs since its founding in 2018. The company has surpassed $500 million in cumulative revenue, with $200 million generated specifically in 2024.

Significant Investment Rounds

Airalo’s substantial $220 million funding round, spearheaded by CVC and announced in July, propelled the company to unicorn status, representing the most significant eSIM investment of the last two years. Concurrently, Kolet, a French eSIM startup, secured $10 million in Series A funding, led by Daphni and including participation from Peter Kern, former CEO of Expedia Group, and Jon Gieselman, Apple’s previous vice president of marketing.

Future Investment Focus

According to Scott Shiao, a principal at Goodwater Capital, current investment will primarily concentrate on travel-focused eSIM startups catering to consumers. However, opportunities within domestic markets may emerge in the future.

Martell Hardenberg, a partner at Antler, suggests that while the adoption of eSIMs for travel is increasing, many current users fall into the category of early adopters. He believes considerable potential for further growth remains.

Bundled Services and Long-Term Viability

“There's a clear opportunity to provide comprehensive service packages to global travelers and digital nomads,” Hardenberg stated to TechCrunch. “Companies can expand beyond simply offering travel SIM cards to create attractive and profitable offerings for these user groups.”

Kaledio’s Sorrell anticipates that investors will prioritize service offerings and marketability when making long-term investment decisions. He notes that market consolidation is likely within a few years.

Key Factors for Investor Consideration

“The market is demonstrably growing, but a saturation point among providers is inevitable,” Sorrell explained. “Therefore, investors will assess the long-term sustainability of businesses, considering factors such as customer retention, coverage quality, and marketing effectiveness – including partnerships with airlines, financial institutions, or transportation services.”

• eSIM adoption is rapidly increasing.
• Travel-related eSIM startups are attracting significant investment.
• Long-term viability will depend on customer loyalty and comprehensive service offerings.

Obstacles to Widespread Use

Several challenges hinder the broader adoption of eSIM technology, primarily revolving around user education, establishing trust, and ensuring a simple user experience. A significant portion of the population remains unfamiliar with the concept of an eSIM.

As highlighted by Airalo’s Ozdemir, promoting an eSIM service differs from established platforms. “Unlike Spotify or Netflix, which leverage pre-existing awareness of music and television respectively, Airalo faces the hurdle of introducing the eSIM concept itself to potential users.”

To address this knowledge gap, the company actively collaborates with various influencers. These partnerships aim to inform individuals about the benefits of on-the-go connectivity via eSIM and direct them towards Airalo’s services.

Eric Dadoun, CEO of Truely, anticipates that the increasing prevalence of eSIM-only devices will naturally drive consumer awareness. However, he emphasizes that companies within the eSIM sector will continue prioritizing user education as a key customer acquisition strategy in regions where eSIM-only devices are a choice, not a necessity.

A notable inconvenience associated with eSIM usage is the current installation method. Purchasing a plan typically involves receiving a QR code via email, which must then be scanned to activate the eSIM. This necessitates access to a separate device capable of displaying the code.

This process can be particularly problematic for travelers seeking to acquire an eSIM upon arrival at a foreign airport. GSMA’s Iacopino acknowledges this friction and suggests that as adoption rates increase, both eSIM providers and device manufacturers must streamline the installation procedure.

According to Sorrell from Kaleido Intelligence, some network operators are experiencing a slower transition to eSIM. Existing infrastructure and legacy systems present significant obstacles to implementation.

Furthermore, these operators need to fully digitize the switching process, eliminating the requirement for customers to physically visit a retail store.