THE global telecom industry is steadily expanding eSIM adoption, with operators and enterprises increasingly viewing the technology as a strategic tool for reducing costs, supporting IoT growth and enabling digital services, according to a new industry survey.
The “eSIM Survey Report 2026,” published by Mobile World Live in partnership with 1GLOBAL, Amdocs and Kigen, found the industry is moving from early experimentation toward broader commercial deployment, although concerns over security, interoperability and customer awareness continue to slow adoption.
“Consumer interest is clearly growing,” the report stated, adding that “in the industrial space, the SGP.32 standard is removing some of the technical barriers to adoption.”
The report said eSIM technology, now 10 years old, is beginning to reshape both consumer and enterprise connectivity markets, particularly in travel roaming and the Internet of Things (IoT). While predictions of major disruption to mobile operators have not materialized, the technology is changing how providers manage connectivity and digital services.
The survey found 22 percent of organizations are already in full eSIM deployment and actively promoting services, while another 30 percent plan to deploy eSIM within the next 12 months. Another 22 percent have limited deployments, while 26 percent reported having no current plans.
Adoption levels, however, remain modest. Forty-five percent of respondents said fewer than 5 percent of their customers currently use eSIM-enabled devices, while only 2 percent reported penetration rates above 75 percent.
Respondents identified IoT devices as the market segment expected to benefit most from eSIM adoption, accounting for 35 percent of responses. Consumer smartphones followed at 26 percent.
The report also highlighted growing interest in the GSMA’s SGP.32 specification, a next-generation standard designed to simplify remote provisioning and management of IoT devices. Twenty-seven percent of respondents identified SGP.32 as the standard best aligned with their technical roadmaps, although 37 percent said they were still evaluating which standard best suited their requirements.
Operational savings emerged as one of eSIM’s strongest advantages. Sixty percent of respondents said eSIMs are already cheaper to operate than physical SIM cards because of reduced logistics and distribution costs.
“The opportunity goes far beyond digitizing the SIM,” the report noted. “eSIM enables simplified global service delivery, reduced operational complexity, faster time to market, and new commercial models across channels and geographies.”
Lower costs and access to new markets were identified as the main business benefits of consumer eSIM adoption. Sixty-five percent cited lower operational costs, while 53 percent pointed to opportunities in new markets and digital services.
Roaming also emerged as a major consumer use case. Fifty-five percent of respondents cited roaming as a primary driver of eSIM adoption, second only to setting up new or upgraded smartphones at 60 percent.
Consumer education remains a major barrier to adoption. Fifty-five percent of respondents identified lack of awareness as the biggest obstacle to wider eSIM adoption. Other concerns included lack of device support at 47 percent, fear of adopting new technology at 39 percent and complicated activation processes at 35 percent.
Operational complexity also continues to challenge telecom providers. Forty-five percent cited coordination issues involving device manufacturers, entitlement providers and eSIM vendors as a major rollout problem, while 41 percent identified technical integration issues.
“The most prominent obstacle to adoption might be a simple lack of awareness,” the report said. “Fifty-five percent of respondents believe their customers do not know eSIM exists.”
In the enterprise sector, half of respondents said the ability to switch connectivity providers remotely throughout the IoT device lifecycle was either important or essential, mainly to avoid vendor lock-in and support international deployments.
The report also found enterprises are increasingly preparing for long-term cybersecurity and regulatory compliance requirements tied to connected devices. Twenty-nine percent said cybersecurity compliance could become a business growth driver by strengthening customer trust and product credibility.
Security concerns remain significant. Respondents identified remote provisioning and profile lifecycle management as their biggest security concern, alongside governance and access control involving multiple partners and service providers.
The study concluded the eSIM market is entering a transitional phase in which adoption is expanding, but operational readiness, interoperability and customer awareness will determine how quickly the technology reaches large-scale deployment across consumer and industrial markets.