The Smart Insights Report “eUICC, a disruption in the SIM market” includes a series of adoption scenarios for eUICC, depending on which entity in the ecosystem is the most active in supporting the new technology. According to these scenarios, the adoption of eUICC as a replacement for the detachable SIM will not have a significant impact on the SIM market over the forecast period (2013 – 2018). The Smart Insights Report “eUICC, a disruption in the SIM market” concludes that a wide adoption of eUICC is not foreseen in the scope of the covered period, but rather in the long-term future. The report provides forecasts on eUICC shipments and adjusted removable SIM card shipments in volume. Even with the fastest adoption scenario, adjusted removable SIM card shipments will continue to grow at a CAGR of 6% to 12%.
MNOs are believed to resist the transition from removable SIM to an embedded module, which eventually may negatively impact their core business. However, our field research found that some MNOs do believe in business opportunities that come with eUICC adoption and thus come out for its implementation. Handset makers alike other third parties are also expected to take advantage of the eUICC opportunity. “The analysis of the eUICC ecosystem shows that even if many industry players have started to build their roadmaps, standardization bodies are lagging behind, probably under the influence of those who feel threatened by the technology shift”, said Artur Khakimov, industry analyst with Smart Insights and author of the report.
“The eUICC, initially called embedded SIM, has generated both excitement and fear since the concept was coined. Our report brings a cold analysis of eUICC technology potential and shows that, over the next five years, the detachable SIM market growth will not be significantly affected by the adoption of eUICC”, added Thierry Spanjaard, CEO of Intelling, and head of Smart Insights Reports.
