Global Subscriber Identity Module (SIM) card shipments were down -7.2% in 2023, reaching 4.09 billion units. This downward growth trend was primarily caused by reduced demand for consumer electronics devices and a stronger-than-expected impact of eSIM in the United States.
Embedded cellular connectivity by nature is not static, in terms of both its ability to serve moving objects, and the fact it provides a secure cellular channel that can enable dynamic future-looking capabilities. It is abundantly clear that cellular-enabled IoT connections will grow exponentially over the next 5 years, forecast to increase from 1.5 billion in 2023 to 6.5 billion by 2030. There is a clear demand for cellular as enterprises look to unlock digital transformation strategies. Enterprises are looking toward cellular as a connectivity technology that is reliable, wide reaching, global in nature, and future proof, as well as being a technology that can address the pain points of today and one that can grow and evolve to address the pain points of tomorrow. Embedded connectivity will unlock this growth opportunity thanks to purpose-built specifications designed to provide out-of-the-box connectivity, alongside new levels of implementation and ongoing management flexibility.
In the early days of the Internet of Things (IoT) industry, Mobile Virtual Network Operators (MVNOs) had clearly defined roles. Virtual network operators considered themselves network resellers, repackaging carrier connectivity at discounted rates and offering few additional services in the process.
Embedded connectivity across consumer, Machine-to-Machine (M2M), and Internet of Things (IoT) applications continue on a positive growth trajectory. In the cellular domain, Embedded Subscriber Identity Module (eSIM) technology adoption, which allows remote selection and switching of carrier networks, has been and will continue to be a major catalyst for growth. Much of the underlying groundwork for standardizing eSIM has been completed thanks to the ongoing focus on developing and evolving different Remote SIM Provisioning (RSP)-capable SIM form factors. Thanks to these developments, shipments of eSIM-capable devices reached 446 million in 2023, nearly 2X more than 5 years ago.
In the wake of the COVID-19 pandemic, consumers are shopping in person again at brick-and-mortar stores. The growth of in-store shopping means retailers, restauranters, and other shopping locations require more Point of Sale (POS) terminals to complete digital transactions, particularly through contactless solutions. ABI Research’s latest POS and mPOS Devices market data backs this claim up, reporting a +2.4% Year-over-Year (YoY) shipment growth for POS terminals in 2022, and expecting a further +3.8% YoY growth in 2023. The POS market size is worth US$5.84 billion today and will increase to US$6.46 billion in value by 2027.
A Subscriber Identity Module (SIM) is the nucleus of contemporary mobile devices as they authenticate user Identity (ID) for billing and store crucial identity information. As chronicled in ABI Research’s most recent SIM Cards market data report, demand for this technology has already passed its peak. Worldwide shipments for SIM cards (a combination of removable and Embedded SIM (eSIM) solutions) are set to plateau, growing at a Compound Annual Growth Rate (CAGR) of 1.5% between 2023 and 2028—reaching 4.67 billion units shipped by the end of the forecast window. For reference, 5.38 billion SIMs shipped in 2018.
Among worldwide central banks, offering Central Bank Digital Currency (CBDC) wallets is viewed as one fundamental way to overcome a two-fronted challenge they currently contend with. On the one hand, consumers are using less physical cash, which subverts public confidence in the fiat monetary system. At the same time, central banks are not oblivious to the fact that Meta, Facebook, Google, and other big tech juggernauts have or still have aspirations to issue their own currencies. Given these platforms' gigantic user bases, introducing their respective digital currencies would further destabilize economic influence.
As showcased at eco-centric conventions like the recently held COP27 Summit, there’s a sense of urgency for sustainable banking to address concerns about climate change. This has forced financial institutions to increasingly feel the pressure to reduce their Greenhouse Gas (GHG) emissions.
With traditional banking and commerce trading, a bank or another financial institution is responsible for ensuring security. But when it comes to storing Bitcoin and other cryptocurrencies, users are on their own. Once a user loses access to their coin portfolio, it’s likely gone forever. To safeguard against cryptocurrency attacks, crypto users will increasingly turn to cold storage wallets, an ultra-secure crypto storage solution that operates offline and involves a hardware device.
As pointed out in the blog post Government Issued ID: Key Trends to Know Before Green Lighting New Projects, the government Identification (ID) market was largely spared from the global semiconductor chip shortage. While demand for government-issued smart cards is growing and will continue to keep growing, thanks to most COVID-19 travel restrictions being lifted, this also means smart card personalization players will face relentless competition. Gaining market share boils down to succeeding in four key areas: personalization flexibility, advanced printing technologies, additional security features, and scalable solutions.