South America ESIM Market Size & Share Analysis - Growth Trends and Forecast (2025 - 2030)

South America ESIM Market Trends and Insights

OEM Shift to eSIM-Only Smartphones Accelerates Regional Adoption

Apple’s eSIM-only iPhone precedent in 2022 spurred Android peer moves that now ripple through South America. With smartphone penetration already above 80% in Brazil, every upgrade cycle converts physical SIM users into the eSIM mainstream.^{[1]GSMA Intelligence, “eSIM Consumer Research 2024,” gsma.com} TIM Brasil’s September 2024 migration portal, built with IDEMIA, cuts activation steps from five to two and slices call-center traffic by 27%.^{[2]Nokia, “TIM Brasil Selects Nokia for 5G Expansion,” nokia.com}ANATEL’s device certification keeps rogue profiles off networks, ensuring secure scaling. As more OEMs seal the SIM tray, even reluctant subscribers adopt the technology, turning a hardware tweak into a structural demand driver.

5G Infrastructure Expansion Drives Data-Heavy eSIM Applications

Thirty-two operators across 13 South American countries switched on 5G by December 2024, opening low-latency lanes for AR, smart-factory, and connected-vehicle workloads that depend on programmable eSIM connectivity. Nokia’s 2025 contract with TIM Brasil spans 15 states and bundles AI-assisted MantaRay network management for near-zero downtime rollouts. In Argentina, a Sencinet-Alvis tie-up melds private LTE with Starlink backhaul, letting agriculture clients roam between terrestrial and satellite bands via a single eSIM profile.^{[3]BNamericas, “Sencinet and Alvis Forge LTE–Satellite Pact,” bnamericas.com}Such hybrid models amplify the value of remote provisioning, justifying higher-margin enterprise plans.

Digital-First Operator Strategies Transform Customer Acquisition

Latin operators once relied on corner-store SIM swaps; now they push app-based activation that cuts plastic waste and courier logistics. América Móvil, Telefónica, and TIM joined GSMA’s Open Gateway, exposing APIs for SIM swap and number verification that shrink onboarding to minutes. Nubank’s May 2024 travel eSIM for Ultravioleta clients showcases how fintechs bundle connectivity with loyalty perks, bypassing legacy retail stores while expanding cross-sell revenue. Operators counter with zero-touch eSIM top-ups linked to PIX, locking in customers through friction-free digital experiences.

Post-Pandemic Travel Recovery Fuels Cross-Border eSIM Demand

International traffic rebounded 34% year-over-year in 2024, and 51% of global eSIM users activated profiles abroad, often choosing Airalo or Holafly over local operator roaming packs. BTS Group’s April 2025 investment in ZIM Connections unlocks white-label apps supporting 200+ destinations, letting South American carriers launch branded travel eSIMs without deep tech builds. For consumers, tapping an app on arrival replaces swapping a kiosk-sold SIM, making eSIM the de-facto cross-border standard.

Consumer Awareness Deficits Limit Mainstream Adoption

GSMA found global eSIM awareness at only 36% in late 2022; South American mid-tier markets sit lower, dampening uptake despite operator readiness. Brick-and-mortar dependence slows exposure, and some carriers fear easier churn once switching requires no physical SIM. The gap narrows through targeted campaigns at device-upgrade moments, yet weak awareness still trims 1.3 percentage points from potential CAGR.

Mid-Tier Device Compatibility Creates Market Segmentation

Budget smartphones dominate Latin shipments, and many omit eSIM to save BOM costs, restricting adoption to premium bands. Brazil’s ex-tarifário ends December 2025, dropping duties on 36 ICT items to nudge OEMs toward mid-tier eSIM variants. Until compatibility broadens, the addressable base remains skewed toward high-income users and enterprise IoT endpoints.

Segment Analysis

By Offering: Hardware Dominance Amid Service Innovation

Hardware captured 62.33% of the South America eSIM market share in 2024, owing to robust demand for MFF2 and wafer-level packages across smartphones, wearables, and industrial sensors. The South America eSIM market size for hardware reached USD 353 million, expanding steadily as OEMs integrate secure elements at the factory. Intensive certification, cryptographic IP, and high entry costs anchor incumbent dominance. Remote SIM provisioning, though only 15% of revenue today, clocks a 13.01% CAGR to 2030 as operators license cloud orchestration suites to digitize onboarding. Growth hinges on multi-tenant platforms that slice lead times for adding new MVNOs or enterprise fleets.

Service innovation reshapes margins. TIM Brasil’s eSIM portal condensed SIM migration costs by an estimated USD 1.7 million within six months, according to internal disclosures. eSIM management middleware layers, situated between hardware and user apps, orchestrate profile downloads, revoke stolen credentials, and auto-select the cheapest roaming networks. While hardware remains the revenue bedrock, services convert one-time component sales into annuity streams.

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

By Device Type: Smartphone Leadership with IoT Acceleration

Smartphones and feature phones owned 73.05% of the South America eSIM market size in 2024, equal to roughly USD 414 million, reflecting high handset replacement cycles in urban centers. Apple, Samsung, and Motorola drive premium volume, but flagship pricing caps penetration in lower-income segments. IoT modules, although only 6% revenue, outpace all categories at a 17.48% CAGR, spurred by ANEEL’s electricity smart-meter decree demanding 99.98% availability for substations.

emnify’s September 2024 roaming-enabled connectivity leverages a single IMSI that hops between Claro, TIM, and Vivo, easing nationwide truck tracking. Wearables and tablets post mid-single-digit growth as health-monitoring and hybrid work persist, but value remains marginal relative to smartphones. Over 2025-2030, IoT’s runway lengthens once chipset prices fall below USD 3, unlocking use cases in cold-chain logistics and smart agriculture.

By Network Type: 4G Maturity Enables 5G Transition

4G/LTE commanded 68.63% of South America eSIM market share in 2024, supporting the bulk of consumer smartphone traffic. As 5G cells proliferate, the South America eSIM market size for 5G profiles climbs at 16.55% CAGR, fueled by enterprise SLA commitments in mining, ports, and manufacturing. NB-IoT and LTE-M satisfy low-power needs in smart-metering and environmental monitoring, while spectrum-auction timelines dictate rollout velocity per country. Regulators that bundle mid-band and millimeter-wave allocations, like Brazil’s 3.5 GHz auction, shorten payback for operators, accelerating eSIM-enabled device shipments.

For consumers, eSIM eases SIM swaps between LTE and 5G plans without store visits, raising ARPU as users trial higher-speed tiers. Enterprise clients exploit profile cycling to shift backup links from LTE-M to 5G when throughput spikes, demonstrating the programmable versatility at the heart of the South America eSIM industry.

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

By End-User Industry: Consumer Electronics Leadership with Logistics Momentum

Consumer electronics commanded 67.75% of the South America eSIM market size in 2024, driven by smartphone upgrades, tablet sales for education, and rising smartwatch penetration. Operators bundle devices with installment financing and PIX-based instant activation, tying service revenue to hardware refreshes.

Logistics and asset tracking emerge as the speedster with 17.21% CAGR. Cross-border trucking, maritime shipping, and air-cargo boxes traverse customs zones, so eSIM’s ability to preload multiple carrier profiles slashes downtime. emnify notes a 28% reduction in cold-chain spoilage incidents after deploying multi-network IoT tags on Brazil-Argentina routes. Automotive, energy, and industrial verticals also climb as connected-vehicle mandates and predictive-maintenance programs gain policy momentum, reinforcing the South America eSIM market’s diversification beyond phones.

Geography Analysis

Brazil’s 53.86% hold on the South America eSIM market reflects its large economy, mature 4G base, and wide PIX adoption that speeds digital onboarding. ANATEL fast-tracks eSIM certifications, while the 3.5 GHz auction already financed dozens of 5G clusters across São Paulo, Rio de Janeiro, and Brasília. Operators push bundled handset-plus-plan deals that ship with pre-provisioned eSIM profiles, and utilities follow suit as they comply with smart-meter mandates that require 99.98% network uptime. Robust fintech participation also drives add-on travel eSIM purchases inside banking super-apps, widening consumer exposure to the South America eSIM market.

Chile and Colombia form the second tier of adoption with rising 5G footprints and pro-competition spectrum rules that keep tariffs low. Chile’s Subtel opened the 3.5 GHz band in 2024 and tied license renewals to rural-coverage targets, so Claro, WOM, and Entel added eSIM-centric prepaid plans that let users switch networks remotely. Colombia’s MinTIC promotes neutral-host infrastructure, cutting small-cell capex by as much as 30%, which helps MVNOs offer feature-rich plans without storefronts. Together, these countries contribute a growing slice to the South America eSIM market as competitive tension rewards digital-only distribution.

Argentina and Peru advance at a steadier pace because of macro headwinds and difficult terrain, yet both nations leverage sector-specific demand. In Argentina, currency controls hamper handset imports, so operators lean on cloud-managed IoT modules for agritech and logistics corridors linked to Brazil. Peru’s mining clusters in the Andes favor eSIM because trucks cross coverage holes that require seamless network handover. The Rest of South America group—Bolivia, Ecuador, Paraguay, Uruguay, and Venezuela—posts the fastest 10.32% CAGR thanks to regulatory harmonization that cuts roaming surcharges and lets travel eSIM players preload multi-country profiles. These developments collectively ensure the South America eSIM market keeps broadening beyond Brazil’s core.