Despite being a decade-old technology, eSIM adoption is finally gaining significant momentum, largely propelled by increasing device compatibility and its growing appeal to international travelers. While global adoption stood at approximately 3% last year (2024) and is projected to only slightly exceed 5% this year (2025), analysts, eSIM-providing startups, and investors are remarkably optimistic about its future trajectory.
Device Compatibility Fuels eSIM Growth
A primary driver for this upward trend is the increasing number of smartphone manufacturers integrating eSIM features into their devices. The first wave of eSIM-enabled smartphones, including the Pixel 2 and iPhone XR, emerged between 2017 and 2018. A pivotal shift occurred in 2022 when Apple made the iPhone 14 eSIM-only for the U.S. market, a move Google echoed with the Pixel 10 in 2025.
Further solidifying this trend, Apple released the eSIM-only iPhone Air in 2025 and offered an eSIM-only variant of the iPhone 17 series in over 11 countries. A notable advantage of these eSIM-only models is a slightly extended battery life compared to their physical SIM counterparts.
According to analytics firm Counterpoint, only 23% of smartphones launched in 2024 featured eSIM capabilities. The U.S. leads this adoption, with 41% of devices launched there in 2024 supporting eSIM. While eSIM was initially a premium feature, this is gradually changing. The GSMA reported that over 60 eSIM-enabled smartphones were launched in just the first half of 2025, indicating a broader market penetration.
China is poised to become a significant catalyst for eSIM adoption. Following the launch of Apple’s eSIM-only phone and some initial adjustments, Chinese telecom providers began offering eSIM support in October 2025. Pablo Iacopino, an analyst at GSMA, anticipates that local manufacturers like Huawei, Xiaomi, Oppo, and Vivo will likely introduce more eSIM-native or supported devices. These brands hold substantial market share in economically sensitive regions across Asia and Africa, enabling them to gradually integrate eSIM support across various price points to meet domestic demand.
“Chinese brands, when they see that the Chinese MNOs have launched eSIM services for the domestic Chinese market, they will probably start introducing eSIM across a wider range of smartphones, including medium and low-end market,” Iacopino stated. “But I don’t think they will go eSIM only immediately. They will start with supporting both physical and eSIM, before shifting to eSIM-only models.”
Even among devices with eSIM support, activation rates have historically been low, but this is changing. Steffen Sorrell, head of research at Kaleido Intelligence, a telecom analyst firm, observed a 30% activation rate in eSIM-capable devices in 2024, a figure projected to rise to 75% by 2030.
Travel: A Major Catalyst for eSIM Adoption
eSIM offers one of the most convenient ways to stay connected while traveling. A GSMA survey revealed that 51% of eSIM users leverage the technology specifically for travel. Its enhanced security, often binding eSIM hardware with secure elements, also makes it more resistant to tampering.
These benefits have fueled growth for eSIM provider startups such as AirAlo, Holafly, eSIM.me, Nomad, and Truely. Even Lithuania-based security provider Nord launched an eSIM service called Saily. Most of these companies have experienced significant customer base expansion, largely attributed to the travel sector.
The GSMA highlights travel as a powerful catalyst for eSIM growth, noting that frequent travelers increasingly prefer devices with eSIM support and are likely to adopt eSIM for long-term use.
“People might experience eSIM for the first time while traveling. These users who like the eSIM experience would go back home and request their network providers to make a switch from a physical SIM,” GSMA’s Iacopino told TechCrunch.
Bahadir Ozdemir, CEO of AirAlo, one of the largest eSIM companies active for over six years, noted that his app introduces many users to eSIM for the first time. A company survey last year found 85% of respondents were first-time eSIM users.
“Roughly 15% of travel connectivity is being powered by eSIMs, and the number is growing. Once users discover how they can get connectivity with eSIM, they don’t really want to go back to the old way [physical SIMs] of doing it,” Ozdemir explained.
Ozdemir added that while many telecom operators offer eSIMs, their discoverability can be challenging for customers, a gap that apps like AirAlo help bridge. Network providers are also recognizing the travel eSIM market's potential; for instance, Vodafone partnered with UEFA to launch a specialized eSIM for football fans traveling across Europe.
Growth and Investor Interest in eSIM Startups
Travel-related eSIM startups have seen remarkable growth. Truely reported serving over 70,000 travelers in the past two years, with a twofold increase in orders this year. The startup, which secured a $2 million extension round in June 2025, is also exploring governmental collaborations alongside partnerships with fintech services and travel apps.
NordVPN’s Saily eSIM app garnered a seven-digit user base after its launch in March 2024, subsequently introducing a $60 per month Ultra plan offering global coverage.
Holafly has sold over 15 million eSIMs since its 2018 inception, achieving more than $500 million in total revenue, with $200 million earned in 2024 alone.
AirAlo’s monumental $220 million funding round in July 2025, led by CVC, established it as a unicorn and marked the most significant eSIM investment in the last two years. Concurrently, French eSIM startup Kolet secured $10 million in Series A funding, led by Daphni with participation from former Expedia Group CEO Peter Kern and Apple’s former VP of Marketing Jon Gieselman.
Scott Shiao, a principal at Goodwater Capital, predicts that investment will primarily focus on consumer-facing, travel-related eSIM startups for the foreseeable future, with potential opportunities emerging in domestic markets later on. Martell Hardenberg, a partner at Antler, notes that while the travel eSIM use case has grown, many users are still early adopters, indicating substantial room for expansion.
“I think there is opportunity in offering bundled services to global travelers or digital nomads about what can companies offer beyond travel SIM cards and make it a lucrative package for these user profiles,” Hardenberg told TechCrunch.
Kaleido Intelligence’s Sorrell suggests investors will prioritize long-term viability, anticipating market consolidation in the coming years.
“The market is obviously on its way up, but I think sooner or later we’re going to reach a saturation point in terms of the providers on the market there. So investors will look into the long-term viability of the business along with things like customer loyalty, quality of coverage, and even association with marketing capabilities, how you’re able to promote that eSIM, whether it’s through airlines, banks, or cab companies,” he explained.
Challenges to Broader eSIM Adoption
Despite the positive trends, several roadblocks hinder widespread eSIM adoption, primarily revolving around user education, trust, and ease of use. Many potential users simply lack awareness of what an eSIM is.
“Spotify can tell people to download Spotify because people know about music, and Netflix can tell people to download Netflix because people know about TV shows,” AirAlo’s Ozdemir remarked. “But we couldn’t do that with AirAlo, as a lot of people don’t know about eSIMs.”
Ozdemir noted that AirAlo regularly collaborates with influencers to educate the public about on-the-go connectivity via eSIM and direct them to their platform. Truely CEO Eric Dadoun believes that the steady rise of eSIM-only devices will eventually compel consumers to learn about the technology. However, he adds that companies in the eSIM industry will continue to prioritize user education for customer acquisition in markets where eSIM-only devices remain optional.
One of the more cumbersome aspects of using an eSIM is the current installation process, which often involves scanning a QR code sent via email. This typically requires a second device to display the QR code, making the process inconvenient, especially for travelers trying to activate an eSIM at an airport.
GSMA’s Iacopino acknowledged this hurdle, emphasizing that as adoption grows, eSIM providers and hardware manufacturers will need to streamline the installation process. Kaleido Intelligence’s Sorrell also pointed out that some network providers are slow to adopt eSIM due to legacy technology and systems. These providers will need to digitize the entire switching process to eliminate the need for customers to visit physical stores.
