ESIM card is an embedded SIM card, which is directly embedded in the device chip. Users can choose the carrier package more flexibly, and change the operator at any time without unlocking the equipment and purchasing new equipment. Its flexibility and convenience will become a major trend to replace the traditional SIM card on new terminals and hardware products. Many institutions said that in the coming era of Internet of things, the demand for ESIM cards may usher in explosive growth. According to the prediction of McKinsey, IHS, GSMA and other institutions, the number of global connections will reach 5 billion in 2021, with a compound growth of 95%. The ESIM market scale will reach 5.4 billion US dollars in 2022. At the same time, many institutions have published relevant research reports, optimistic about the performance of ESIM concept.
Huatai Securities believes that the development of ESIM is closely related to the miniaturization and functional stability of intelligent terminals, and is also an important starting point for operators to expand new business. In addition, for wearable device manufacturers such as smart watches, the product penetration rate is expected to accelerate.
Strategy analytics forecasts that ESIM sales for IOT applications will more than double by 2025. At present, terminal manufacturers, operators and ESIM technology solution providers are embracing ESIM technology, and ESIM card is expanding more application scenarios. In addition, the agency also predicts that by 2024, more than 500 million smart phones will be shipped to support ESIM business. In 5g era, ESIM card is expected to be deeply integrated with other fields to create greater value.
Oriental Securities view also said that in the 5g era, the application of new SIM card products will drive the demand for increment and card replacement. ESIM card is more likely to be deeply integrated with other fields and will create greater value. According to the published information and relevant information in the market, CFA sorted out the listed companies with ESIM business as follows:
Source: Science and technology innovation board daily editor: Yang Bin_ NF4368