Europe ESIM Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Europe ESIM Market Trends and Insights

Rapid 5G Rollout Across European Markets

Fifth-generation networks now cover 89% of the EU population through more than 460,000 base stations, furnishing bandwidth and latency profiles that unlock network slicing for mission-critical industrial traffic.^{[1]European 5G Observatory, “5G Deployment Status in Europe,” 5gobservatory.eu} As manufacturers deploy private 5G cells, eSIM authentication simplifies device onboarding across segmented slices, securing differentiated performance levels. German factories have pioneered this architecture, pairing embedded profiles with low-latency control loops for robotics lines. Leading operators are commercializing open network APIs that expose premium connectivity tiers, a model that hinges on seamless, programmable SIM profile transitions.^{[2]Deutsche Telekom Press Office, “Global Network API Venture,” telekom.com} Traditional remote SIM provisioning software, however, must evolve to orchestrate dynamic service attributes in real time.

OEM Shift to eSIM-Only Flagship Smartphones

Apple’s 2025 European release of the eSIM-only iPhone 17 forced ecosystem-wide readiness, mirroring the US experience that began with iPhone 14. Samsung and Google have confirmed similar plans for flagships debuting by 2026, citing design simplicity and greater ingress protection. Device-centric onboarding eliminates physical distribution, steering consumers toward fully digital activation flows. Smaller mobile virtual network operators that lack robust remote provisioning stacks face churn risk, a concern flagged by European regulators reviewing the competitive neutrality of eSIM interoperability.^{[3]BEREC, “Report on eSIM Market Developments 2024,” berec.europa.eu} Hardware makers also gain recurring revenue potential by bundling connectivity directly at the point of sale.

EU Regulatory Push for Seamless Roaming and Digital Onboarding

The European Commission has incorporated GSMA SAM.01 specifications into its Digital Identity Wallet regulation, enabling subscribers to validate their identity and activate services through secure mobile credentials starting in 2026. Harmonized rules are designed to eliminate cross-border activation hurdles, particularly for IoT fleets operating across member states. Enterprises anticipate administrative savings from paperless KYC processes, while eSIM vendors gain a standardized baseline for platform compliance. Implementation timelines, nevertheless, create a near-term gap in which disparate national rules persist, extending integration work for service providers.

Mandated Smart-Meter Roll-outs with eSIM-Compatible NB-IoT Modules

Germany, the Netherlands, and France require utilities to equip millions of residential and commercial sites with connected meters, fueling sustained demand for secure embedded modules. Thales, STMicroelectronics, and Infineon supply GSMA-certified secure elements, while platform players such as Netinium deliver cloud orchestration of meter profiles. Large-scale deployments demonstrate reduced truck rolls and higher data fidelity, but reliance on overseas module production underscores strategic supply-chain exposure.

Fragmented Operator Activation Workflows Across Countries

BEREC’s 2024 assessment mapped wide divergence in eSIM onboarding requirements, ranging from in-person ID checks to fully digital flows. These variations inflate compliance costs and slow roll-out, especially for MVNOs targeting pan-European coverage. Service aggregators such as 1GLOBAL now partner with carriers like freenet to abstract local rules and deliver single-touch activation. Nonetheless, harmonization remains several years away, clouding near-term expansion plans for the European eSIM market.

Low Consumer Awareness Outside Early Adopters

According to the GSMA, only 19% of informed European consumers actively use eSIM services despite 50% awareness. A legacy attachment to retail SIM swaps and physical cards persists, slowing the mainstream adoption of these technologies. Operators have focused outreach on enterprise verticals, leaving a gap in mass-market education. Travel eSIM providers, such as Airalo, are registering strong growth among frequent flyers; however, these users represent a narrow demographic slice. Without broader marketing, the European eSIM market risks under-realizing its consumer potential during the forecast window.

Segment Analysis

By Offering: Software Platforms Unlock Next-Generation Value

Hardware eSIM segment secured 56.62% of Europe eSIM market share in 2025, anchored by secure-element chips that underpin every activated profile. Software, however, is growing rapidly; eSIM management software is projected to post a 9.41% CAGR, driven by enterprises demanding single-pane visibility across thousands of mobile devices. Remote SIM provisioning services complement both layers, streamlining lifecycle tasks from bootstrap credentialing to retirement.

Hardware vendors defend their pricing by incorporating integrated iSIM designs that embed secure-element logic into application processors, thereby reducing board area and power consumption. STMicroelectronics’ automotive iSIM launch positions the supplier for over-the-air updates mandated in connected cars. Thales and Giesecke+Devrient have introduced cloud orchestration suites, marking the convergence of signaling platforms. For buyers, shifting spend toward software enhances agility, lowers field-service costs, and aligns with zero-touch security frameworks, driving the modernization of factories and utilities.

Note: Segment shares of all individual segments available upon report purchase

By Device Type: IoT Modules Outpace Smartphones

Smartphones and feature phones account for 67.58% of the Europe eSIM market size in 2025; however, M2M/IoT modules are expected to surge at a 14.29% CAGR through 2031 as utilities, manufacturers, and logistics operators embed connectivity into their physical assets. Tablets, laptops, and wearables post incremental contributions but remain smaller pools.

The forthcoming wave of eSIM-only handsets from Apple, Samsung, and Google will sustain consumer demand, with travel roaming bundles facilitating adoption among mainstream subscribers. By contrast, metering, telemetry, and asset-tracking projects rely on NB-IoT and LTE-M modules with decade-long lifespans, where eSIM authentication minimizes the need for truck rolls. Utilities such as Stedin cite 95% fewer connectivity interventions after switching to embedded profiles. Automotive OEMs are embedding eSIM for eCall and infotainment, underscoring how industrial volumes will increasingly offset the flattening of handset growth within the European eSIM market.

By Network Type: 5G Momentum Chips Away at LTE

4G/LTE networks still carried 59.88% of 2025 revenue, underscoring a large installed base and broad handset compatibility across the Europe eSIM market. 5G, however, is projected to climb at a 13.91% CAGR through 2031, integrating network slicing and edge processing demanded by factory automation and mission-critical logistics.

Operators leverage existing LTE provisioning stacks to onboard millions of consumer devices with minimal incremental capex, but enterprises prefer 5G’s deterministic performance guarantees. Embedded modules shipping today carry multi-band radios and over-the-air upgrade pathways, ensuring that investments made in 2025 remain viable as slicing matures. NB-IoT retains a niche in deep indoor and battery-sensitive deployments, particularly smart meters mandated under EU efficiency directives.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Industrial Manufacturing Gains Velocity

Consumer electronics accounted for 61.34% of revenue in 2025, yet industrial and manufacturing are forecasted to expand at a 14.31% CAGR, reflecting Industry 4.0’s data-rich production lines that depend on secure, scalable connectivity. Automotive and transportation remain prominent adopters as vehicles transition to software-defined platforms.

Factory owners deploy private 5G microcells with eSIM gatekeeping, reducing lateral attack surfaces and enabling just-in-time reconfiguration of material-handling robots. Schneider Electric documents 30% faster commissioning cycles after standardizing on embedded profiles. In the energy sector, regulatory timelines compel utilities to equip every premise with eSIM-ready meters, ensuring sustained volume. Healthcare wearables utilize eSIM to comply with data-sovereignty regulations by dynamically selecting local networks when patients travel, demonstrating cross-industry support for the European eSIM market.

Geography Analysis

Germany captured 21.75% of the 2025 revenue in the Europe eSIM market, driven by mandatory smart meter deployments above 6,000 kWh annual usage and the penetration of connected vehicles among premium OEMs. The country’s deep industrial base accelerates private 5G expansion inside factories, where eSIM profiles secure deterministic slices on multi-vendor infrastructures. German operators offer bundled lifecycle management, making it easier to comply with rigorous cybersecurity norms.

The United Kingdom and France offer mature infrastructure with nationwide eSIM smartphone activations; however, adoption remains skewed toward business travelers and early adopters. Ofcom’s consultation on interoperability aims to level the playing field for smaller MVNOs, while France’s ARCEP spotlights IoT use cases under digital transformation grants. Italy and Spain are seeing a rise in tourist-driven downloads as travel rebounds, contributing incremental volumes to the European eSIM market.

The rest of Europe, spanning Nordic, Benelux, and Eastern states, is projected to outpace the region at a 10.03% CAGR. Nordic telcos leverage strong 5G footprints to pilot satellite-cellular continuity services that rely on embedded profiles. Eastern states, starting from lower penetration, show steep growth as handset OEMs phase out physical trays. Cross-border digital identity wallets, expected to be introduced post-2026, will further streamline activation, reinforcing geographic convergence across the Europe eSIM market.