We have published a few articles already on the benefits of the eSIM technology and how it can generate increased revenue for companies operating in the travel industry, but how does this technology actually work? As a business that uses the eSIM technology to ensure travellers are connected wherever they are in the world, we want to make sure people understand what a great opportunity it is.
Physical SIM cards were invented just a few decades ago, but the eSIM has already made its way into society and is on track to revolutionise the travel industry. Compared to its physical equivalent, the eSIM provides travellers with quicker access to cheap, easy, and reliable data while abroad.
Increasingly more phones are compatible with the eSIM technology, and the activation process is so simple. You just choose the data package you desire, just as you would with a physical SIM card – with your choice of destination, amount, and duration. Upon purchase, you are sent a QR code to your email address, which you scan to download the eSIM package onto your phone. Finally, to activate the plan, all you need to do is select your newly purchased eSIM package as your mobile data plan in your phone settings. You can access our step-by-step guide here on our website.
Not only is the ability to add a data-only plan to your mobile phone using a QR code revolutionary in itself, but the technology allows you to store and use more than one plan at the same time, meaning you can keep using your regular SIM card for text messages and calls and your eSIM package for data and calls over IP (such as WhatsApp and Messenger). You can also store multiple eSIM packages on your phone at the same time, all with different plans and locations.
To conceptualise this further: Say you are going on a month-long trip across Europe and need different data plans for several countries. You could buy an eSIM package for each country before the trip and label each one accordingly (e.g. “Spain eSIM”). Right before arriving in Spain, you would go into your settings and choose to activate your Spain eSIM. When travelling to your next location, you would simply activate the next package and continue in this manner throughout your trip.
eSIM provides customers with easy access to data like never before. Because of this, it is a fast-growing market. According to a market research study published by Facts and Factors, the global eSIM market was valued at roughly USD 8.9 billion in 2021 and is predicted to grow to about USD 25.8 billion by 2028, with a compound annual growth rate (CAGR) of approximately 16.42% over the projection period 2022-2028.
As stated in our previous article, “Brexit has Changed International Roaming Data as We Know It,” 78% of mobile devices in the UK support eSIM technology and that number is predicted to grow to 90% by 2025. In fact, there are rumours that Apple will be introducing an eSIM-only phone in their next release. Despite this, based on a GSMA survey of 17,000 participants, only 13% of UK citizens reported they had heard of an eSIM.
The disparity here is surprising, but it also creates a great opportunity. As more and more people learn about the eSIM technology and its abilities, we can really start to utilise this technology that most of us already have on our cell phones.
