As per a fresh study by Juniper Research, the experts in telecommunications markets, there will be a significant global increase in the number of travel eSIM users. The number is projected to experience an impressive 440% surge from 40 million in 2024 to 215 million by 2028. This growth is set to disrupt the traditional roaming market.
Travel eSIMs serve as an alternative to operator roaming services. They allow travellers to download a temporary local profile on their devices, helping them evade roaming charges. The study anticipates that the adoption of travel eSIM packages will increase due to the rising cost of international roaming.
The analysis discovered that in 2024, mobile subscribers will spend an average of USD $8.57 per GB of data while roaming, whereas travel eSIM users will pay USD $5.50 per GB. This corresponds to a 35% saving, representing a substantial value proposition for international travellers.
The research suggests that the escalating distribution of eSIM-capable devices in multiple countries will present a significant platform for user growth. By way of example, it highlights that over half of the connected devices in the United States will have eSIMs installed by 2024, fostering a large addressable market for travel eSIMs.
Molly Gatford, the research author, added: "Despite the growing number of eSIM-capable devices, maximising the number of effective distribution channels by creating a seamless purchasing journey for consumers will be essential to growing travel eSIM package spend."
Furthermore, the study reports that traditional roaming services might feel the heat as the adoption of travel eSIM solutions increases. Predictably, operators globally might lose over USD $11 billion to travel eSIMs. The research advises operators to devise and execute their own travel eSIM solutions to complement their existing roaming packages as a counteractive measure.
The latest research suite comprehensively evaluates the travel SIMs and eSIMs market, encompassing market analysis and detailed forecasts for 60 countries. This dataset incorporates over 17,500 market statistics within a five-year period, a Competitor Leaderboard, and a Country Readiness Index.
Juniper Research has offered market intelligence and advisory services to the global telecommunications sector for two decades. Numerous leading network operators and communication platforms worldwide retain the company.
The findings from Juniper Research underscore a significant shift in the global telecommunications landscape, with travel eSIMs poised to dramatically disrupt traditional roaming services. With a projected surge in users by 2028 and substantial cost savings compared to traditional roaming, the adoption of travel eSIM packages is expected to continue rising. As operators face potential revenue losses to travel eSIMs, the study suggests that creating seamless purchasing journeys for consumers and developing complementary eSIM solutions could be crucial strategies for operators to mitigate these challenges.
With its comprehensive evaluation of the market and detailed forecasts, Juniper Research continues to provide valuable insights into the evolving dynamics of the travel SIMs and eSIMs market, aiding stakeholders in navigating this rapidly evolving landscape.