DIGITAL

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TRENDSeSIMCHAPTER

01OverviewEmbeddedSIM(eSIM)marketsizeworldwidein2023withaforecastfor2027(inbillionU.S.dollars)EmbeddedSIM(eSIM)globalmarketsize2023-20271816141210816.364.742020232027*3Description:TheglobalembeddedSIM(eSIM)marketgenerated4.7billionU.S.dollarsin2023.Stronggrowthisforecastoverthecomingyears,withthemarketexpectedtoreach16.3billionU.S.dollarsinrevenueby2027.

ReadmoreNote(s):Worldwide;2023and2027;*Forecast.ReadmoreSource(s):JuniperResearchSmartphonerevenuesworldwidefrom2011to2022(inbillionU.S.dollars)Smartphonerevenuesworldwide2011-2022500448.0845040035030025020015010050418.88410.09404.6391.84381.72367.18359.37325.53284.51232.01161.0620110201220132014201520162017201820192020202120224Description:Betwewen2011and2022,theglobalsmartphonemarketrevenuegenerallyincreased.In2022,thesmartphonemarketworldwideexperiencedadecrease,withitssizegoingfromover448billionU.S.dollarstoaround419billionU.S.dollars.

ReadmoreNote(s):Worldwide;2011to2021Source(s):CounterpointResearchSmartphoneunitshipmentsworldwidefrom2011to2022(inmillions)Smartphoneshipmentsworldwide2011-20221,8001,566.51,6001,4001,2001,0008001,518.61,505.21,479.11,462.41,391.51,331.21,317.81,225.41,048.9741.1600520.920114002000201220132014201520162017201820192020202120225Description:Thesmartphoneunitshipmentsworldwideclosetotripledbetween2011and2017whenitpeakedat1.56billionunits.Sincethen,however,theglobalsmartphoneshipmentsdecreasedyear-on-yearandreached1.3billionsmartphoneunitshipmentsuntil2020.If2021markedthefirstyeartoexperienceagrowthinglobalsmartphoneunitshipmentssince2017,globalshipmentsdecreasedagainto1.23millionunitsin2022.ReadmoreNote(s):Worldwide;2011to2022Source(s):CounterpointResearchInternetofThings(IoT)annualrevenueworldwidefrom2020to2030,byusecase(inbillionU.S.dollars)IoTglobalrevenue2020-2030,byusecaseConnectedVehiclesConsumerInternet&MediaDevicesITInfrastructureOfficeEquipmentPaymentTerminalsPortableInformationTerminalsAutonomousVehiclesRealWorld'Visualisation'SmartGridPersonalAssistanceRobotsWhiteGoodsPersonalMonitoring&TrackingAssetTracking&MonitoringPrecisionSpecialistRobotsRemoteProcessControlBuildingAutomationInventoryManagement&MonitoringRemoteDiagnostics&MaintenanceAccessControl&IntercomsEnvironmentalMonitoringParkingSpaceMonitoringSecurity&FireAlarmsCCTVLightingHVACPublicInformation&AdvertisingScreensRoadInfrastructureMonitoring&Control80060040020002020202120222023*2024*2025*2026*2027*2028*2029*2030*6Description:From2020to2030,theannualrevenueofconsumerinternetandmediadevicesisforecasttomakealeapfrom2.7billionto25billionU.S.dollars.ConnectedvehiclesIoTrevenueisalsoanticipatedtoseeasignificantincreaseoverthecourseofthenexttenyears.ReadmoreNote(s):Worldwide;2020to2022;*ForecastReadmoreSource(s):TransformaInsightsSemiconductormarketrevenueworldwidefrom2020to2030,byapplication(inbillionU.S.dollars)Semiconductormarketsizeworldwide2020-2030,byapplicationSmartphonePersonalcomputingConsumerelectronicsAutomotiveIndustrialelectronicsWiredandwirelessinfrastructureServers,datacenters,andstorage1,2001,00080060040020002498216013610062931495373637176937911413138514050124115100213144150117202020222025*2030*7Description:By2025,oneoftheleadingapplicationwithintheglobalsemiconductorindustryisexpectedtobesmartphones,particularlythecontinueddevelopmentofimagesensorsinsuchdevices.In2022,thesmartphonesemiconductormarketwasvaluedat144billionU.S.dollars,withprojectionssuggestingthisislikelytoriseto150billionU.S.dollarsby2025.ReadmoreNote(s):Worldwide;2020to2022;*Forecast.Thesourcecalculatedthesemiconductormarketsizebyapplicationbasedonindustrybasedonexternalresearchofmarketoutlook.

ReadmoreSource(s):ASMLCHAPTER

02BenefitsandchallengesImportanceofpotentialbenefitsassociatedwitheSIMaccordingtomobilenetworkoperators(MNOs)worldwidein2021eSIMbenefitsrankedbymobilenetworkoperators(MNOs)worldwidein2021ShareofrespondentsExtremelyimportantVeryimportant0%Moderatelyimportant20%Slightlyimportant40%60%80%100%12%

1%120%StreamlinelogisticscostsbyreducingphysicalSIMpurchasingExploreopportunitiesinnewdigitalservices50%47%37%38%10%

5%14%

2%14%

4%17%

2%Facilitateinternationalroamingservices36%48%DrivegreaterusageofdigitaldistributionchannelsBeabletocapturenewopportunitiesinthegrowingIoTmarket27%55%43%31%38%Increaseadoptionofothermobiledevicesbylinkingthemtoaconsumer'smainsubscriptionplan47%17%18%5%4%5%Beabletocapturenewopportunitiesamongdigital-nativeconsumersEnhancecustomerexperiencebydigitisingSIM-relatedoperations32%46%28%34%33%9Description:Ina2021survey,amajorityofmobilenetworkoperators(MNOs)rankedarangeofbenefitsassociatedwitheSIMsas"extremely"or"very"important.50percentrankedthepotentialofeSIMtostreamlinelogisticscostsbyreducingphysicalSIMpurchasingasextremelyimportant,thehighestof8surveyedstatements.ReadmoreNote(s):Worldwide;2021;100respondents;RespondentsincludedglobalmobilenetworkoperatorsSource(s):GSMAIntelligence;MobileWorldLiveMainissueswitheSIMforInternetofThings(IoT)adoptionbycompaniesworldwidein2022TopchallengesforadoptingeSIMinIoTsolutionsworldwide2022Shareofrespondents0%

10%20%30%40%50%60%70%65%Supportandreportingtoolstomonitorover-the-aircampaignsarelackingSomemobilenetworkoperatorsonlysupportonetypeofGSMAeSIMprofileNeedforintegrationwithMNOstoobtainvisibilityandcontrolofthedevicefleetSwitchingnetworkprofilesistoocostlyandtime-consuming49%46%43%ThenumberofavailableeSIMnetworkoperatorprofilesislacking5%5%Switchingnetworkprofilesrequiresmigrationtoanewconnectivityprovider10Description:Ina2022survey,InternetofThings(IoT)adoptercompanieslistedthemainissuestheyhadencounteredwitheSIMsolutions,around65percentofwhomcitedthelackoftechnicalsupportandmonitoringtoolstoreportonthedevicemetricsasthebiggestchallenge.Thischallengewenthand-in-handwiththesecondmostcommonissue,namely,thatsomemobilenetworkoperators(MNOs)onlysupportonetypeofeSIMandthereforeitwasdifficulttoswitchbetweeneSIMprofiletypesto[...]

ReadmoreNote(s):Worldwide;2022;759respondents;respondentsmainlyrepresentedcompaniesthathadadoptedcellularconnectivityfortheInternetofThings(IoT).Source(s):KaleidoIntelligence;TruphoneCostumers'mostexpectedfeaturesofembeddedSIMtechnology(eSIM)in2022eSIM:Consumers'mostexpectedfeatures202235%30%25%20%32%15%10%5%20%18%13%11%6%0%GreaterflexibilityandspeedLesshassleCostsavingswhentravellingAfullydigitalexperienceSustainabilityEnhanceddevicefeatures11Description:In2022,over30percentofsurveyedconsumersratedgreaterflexibilityasthemostimportantandexcitingbenefitofembeddedSIMs(eSIMs).Sustainabilityandenhanceddevicefeaturesrankedthelowest,withelevenandsixpercentofrespondentsselectingthosefeaturesrespectively.ReadmoreNote(s):Worldwide,Australia,UnitedKingdom,UnitedStates;2022;2500respondents;18yearsandolder;ConsumersinUSA(1,000),UK(1,000)andAustralia(500)Source(s):Amdocs;DynataConsumerfamiliaritywitheSIMintheUnitedStates,UnitedKingdom,andAustraliain2022ConsumerfamiliaritywitheSIMintheUnitedStates,UK,andAustralia202270%60%50%40%30%58%42%No20%10%0%Yes12Description:Accordingtoa2022study,42percentofsurveyedconsumersintheUnitedStates,UnitedKingdom,andAustraliawereunfamiliarwitheSIM(embeddedSIM)technology.eSIMsofferseveralbenefitsovertraditionalSIMcards,includingfasteractivationandeasierswitchingbetweennetworks.ReadmoreNote(s):Worldwide,Australia,UnitedKingdom,UnitedStates;August2022;2,500respondents;18yearsandolder;consumersinUSA(1,000),UK(1,000)andAustralia(500)Source(s):Amdocs;DynataSIMandeSIMCO2emissionsin2022,bylifecyclephase(ingCO2eq.)SIMandeSIMemissionsin2022,bylifecyclephaseEmissionsingCO2-eqeSIMSIM0204060801001201401601ProductionTransport13603111Usage15121EndDeviceHardwareEoL39813Description:eSIMtechnologyscored46percentlowerincarbonemissionswhencomparedtotraditionalSIMcardsina2022LifeCycleAssessment(LCA).WhiletheproductionofatraditionalSIMemitsareported229gCO2equivalentthroughallofitslifecyclephases(production,transport,usage,enddevicehardwareandEndofLife),aneSIMemitsonly123gCO2equivalent.ReadmoreNote(s):Worldwide;2022Source(s):Fraunhofer;Giesecke+DevrientLifetimeSIM,eSIM,andiSIMuseintheInternetofThings(IoT)costcomparisonworldwidein2022(inU.S.dollars)GlobalaveragelifetimespendforIoTSIM,eSIM,andiSIMuse2022PlasticeSIMcomponenteSIMmoduleiSIM1009080706050403020100908676686664626058Plastic-singleIMSIPlastic-multi-

eSIMcomponenteSIM

componenteSIM

componenteSIM

component

eSIMmodule-

eSIMmodule-

iSIM-RSP-onlyIMSI-singleIMSI-multi-IMSI-multi-IMSIwithRSP-RSP-onlymulti-IMSIwithRSPRSP-only14Description:Ina2022analysis,embeddedSIM(eSIM)usecasesfortheInternetofThings(IoT)costanaverageofeightpercentlessthantraditionalplasticSIMcardsoverthelifetimeofadevice,andintegratedSIM(iSIM)solutionsaveragedevenlowercostsespeciallywhenpairedwithremoteSIMprovisioning(RSP).Plasticmultipleinternationalmobilesubscriberidentity(multi-IMSI)SIMcardswere76U.S.dollarscomparedtoeSIMmulti-IMSIat68U.S.dollars,thoughthefavoredoptionofthese[...]ReadmoreNote(s):Worldwide;June2022Source(s):TransformaInsightsLifetimeSIM,eSIM,andiSIMcostcomparisonforalltechnologiesworldwidein2022(inU.S.dollars)AveragelifetimecostsforSIM,eSIM,andiSIMacrosstechnologies2022Plastic64eSIMcomponenteSIMmodule85iSIM1009080706050403020100918683737163636261605855535115Description:Ina2022analysis,bothembeddedSIM(eSIM)andintegratedSIM(iSIM)solutionsaveragedlowercostsacrossthelifetimeofalltechnologiesusingthemsuchassmartwatches,cars,andtheInternetofThings(IoT).TheuseofremoteSIMprovisioning(RSP)inparticularwasshowntoreducecostsbyanaverageof15percent,thoughtraditionalremovableplasticSIMsshowedthehighestlifetimecostsacrossallcategories.ThelowupfrontcostoftraditionalSIMswascancelledoutbythecost[...]

ReadmoreNote(s):Worldwide;June2022Source(s):TransformaInsightsCHAPTER

03AdoptionCumulativenumberofeSIM-capabledeviceshipmentsworldwidefrom2021to2030(inbillions)CumulativenumberofeSIMdeviceshipmentsworldwide2021-2030161412108146420.35020212030*17Description:WhilethenumberofeSIM-capabledevicesshippedworldwidein2021approximated350milliondevicessuchassmartphones,smartwatches,tablets,connectedcarsandappliancesontheInternetofThings,thisnumberisprojectedtoincreasetoatotalof14billiondevicesby2030.ReadmoreNote(s):Worldwide;2021to2022;*Forecast.ReadmoreSource(s):CounterpointResearchShareofcellulardevicesshippedequippedwitheSIMby2030,bydevicePenetrationrateofeSIMbycellulardevice2030120%100%80%60%100%100%92%82%40%20%0%79%TabletsSmartphonesConnectedCarsDronesSmartwatches18Description:By2030,82percentofsmartphones,92percentofconnectedcars,andalldronesandsmartwatchesareexpectedtobeembeddedSIM(eSIM)capable.eSIMtechnologyoffersseveralbenefitsovertheuseofatraditionalphysicalSIMcard,includingeasieractivationandnetworkswitchingforusers.ReadmoreNote(s):Worldwide;2023Source(s):CounterpointResearchIndustriesthatmobilenetworkoperatorsanddevicemanufacturersbelievewillaccountforthegreatestshareofeSIMsworldwideasof2021LeadingindustriesforeSIMsaccordingtotelecommunicationsbusinessworldwide2021Shareofrespondents0%5%10%15%20%25%30%35%40%45%50%SmartphonesAutomotiveSmartwatchesOtherkindofwearabletechnology*Smartmeters*Utilities*Logistics*Other*19Description:Ina2021survey,thetopeightanswersfrommobilenetworkoperators(MNOs)anddevicemanufacturersaboutwhichindustriesordeviceswillaccountforthegreatestshareofeSIMsshowedaconsensusonthemostcommonanswer.SmartphoneswereprojectedtoleadtheeSIMmarket,namedbyjustunder50percentoftheMNOsanddevicemanufacturers,astheyarethedevicemostlikelytoboostcurrentlowconsumerawarenessandthusdemandforeSIMtechnology.[...]

ReadmoreNote(s):Worldwide;2021;371respondents;respondentsincludedmobilenetworkoperators(MNOs)anddevicemanufactuers.;*estimatesviaRespondentsincludedamajorityofmobilenetworkoperators(MNOs)andjustoverten[...]

ReadmoreSource(s):MobileWorldLive;estimates;TruphoneMobilenetworkoperatorsanddevicemanufacturersplanningtooffereSIMsby2025worldwideasof2021PlansforadoptingeSIMsby2025withintelecommunicationsbusinessworldwide2021ShareofrespondentsDevicemanufacturers

Mobilenetworkoperators(MNOs)30%

40%

50%

60%0%10%20%70%80%90%100%YesNo*Don'tknow*20Description:Ina2021surveyofmobilenetworkoperators(MNOs)anddevicemanufacturers,almost90percentofMNOsansweredthattheywereplanningtoofferoradoptembeddedSIMs,oreSIMs,by2025.Over80percentofmanufacturersalsoplannedtoadopteSIMsby2025,yetabout18percentofmanufacturersansweredthatthey"didn'tknow"whethertheywouldadopteSIMs,comparedtolessthantenpercentofoperatorswhoindicatedthesameuncertainty.EmbeddedSIMsworkby[...]

ReadmoreNote(s):Worldwide;2021;371respondents;respondentsincludedmobilenetworkoperators(MNOs),consumerandmachinetomachine(M2M)devicemanufactuers.;*estimatesviaRespondentsincludedamajorityofmobilenetwork[...]

ReadmoreSource(s):MobileWorldLive;estimates;TruphoneCHAPTER

04CompaniesRankingofleadingcompaniesintheeSIMprovisioninglandscapeworldwidein2022*RankingofeSIMprovisioningcompaniesworldwide202220018217818016014012010080149147139130125119105104604020022Description:Accordingtoa2022reportrankingcompaniesintermsofcapabilitiesandcompleteness,thetwocompaniesleadingtheeSIMprovisioninglandscapewereThalesandGiesecke+Devrient(G+D),scoring182and178respectively.

ReadmoreNote(s):Worldwide;2022Source(s):CounterpointResearchAnnualsalesofThalesGroupfrom2000to2022(inmillioneuros)RevenueoftheThalesGroup2000-202220,00018,00016,00014,00012,00010,0008,0006,0004,0002,00002000

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202223Description:TheThalesGroupreportedanannualrevenueofaround17.6billioneurosfor2022,upfrom16.2billioneurosthepreviousyear.ThalesisaFrenchelectronicsanddefensecontractorheadquarteredinParis.

ReadmoreNote(s):Worldwide;2000to2022Source(s):ThalesGroupAnnualsalesofThalesGroupfrom2013to2022,byoperatingsegment(inmillioneuros)ThalesGroup:revenue2013-2022,byoperatingsegmentDefense&SecurityAerospaceTransport*Digitalidentity&securityOther20,00018,00016,00014,00012,00010,0008,0006,0004,0002,000079932,5511595277101663,6182,992801,7615,9851,9105,5952,0012,995781,6031,5191,61879821,4021,4474,7054,4635,7805,8124,2175,3875,0144,7139,15420228,63320218,26620198,08520207,98320177,82820187,39020167,07920156,45520136,480201424Description:TheThalesGroupreportedsalesofalmost9.2billioneurosinitsdefenseandsecuritysegmentin2022,upfrom8.6billioneurosthepreviousyear.Meanwhile,thecompanyhasreportedstronggrowthinitsdigitalidentityandsecuritysegment,withsalesreachingover3.6billioneuros.ReadmoreNote(s):Worldwide;2013to2022;*Thetransportsegmentwasdiscontinuedasof2021.ReadmoreSource(s):ThalesGroupNetsalesofGiesecke+Devrientfrom2018to2022(inmillioneuros)Giesecke+Devrientnetsales2018-20223,0002,527.12,4472,5002,0001,5001,0005002,376.62,312.82,24602018201920202021202225Description:Giesecke+Devrientreportednetsalesofaround2.5billioneurosin2022,upfromaround2.4billioneurosthepreviousyear.Giesecke+DevrientisaMunich-basedcompanyofferingsecuritytechnologyservicesworldwide.

ReadmoreNote(s):Worldwide;2018to2022Source(s):Giesecke+DevrientNetsalesofGiesecke+Devrientfrom2018to2022,bysegment(inmillioneuros)Giesecke+Devrientnetsales2018-2022,bysegmentCurrencytechnologyMobilesecurityVeridossecunet1,2001,00080060040020001,132.41,058.91,0531,034.71,013.31,004.1876.5867.6811.3785.6347.2337.6285.6231.6

226.9227.5197.7192.3180.2163.32018201920202021202226Description:Giesecke+Devrient'smobilesecuritysegmentgeneratedover1billioneurosinnetsalesin2022,outperformingthefirm'scurrencytechnologysegment.Thecompany'smobilesecuritysegmentincludesitsSIMcard,eSIM(embeddedSIM),andsecuretransactionservices.ReadmoreNote(s):Worldwide;2018to2022Source(s):Giesecke+DevrientCHAPTER

05Specialfocus:IoTdeviceoutlookNumberofInternetofThings(IoT)connecteddevicesworldwidefrom2019to2030,byvertical(inmillions)NumberofIoTconnecteddevicesworldwide2019-2030,byverticalAgriculture,Forestry&FishingElectricity,Gas,Steam&A/CRetail&WholesaleInformation&CommunicationAdministrativeMining&QuarryingWaterSupply&WasteManagementTransportation&StorageFinance&InsuranceGovernmentManufacturingConstructionAccommodation&FoodServiceProfessional,Scientific&TechnicalHealth&SocialCareConsumerArts&EntertainmentCross-verticalOtherServicesEducation35,00030,00025,00020,00015,00010,0005,000020192020202120222023*2024*2025*2026*2027*2028*2029*2030*28Description:TheconsumersectorisanticipatedtodominateintermsofnumberofInternetofThings(IoT)connecteddevicesin2030,with17billionconnecteddevicesworldwide.Thisnumberofconnecteddeviceswithintheconsumersectorisforecasttomorethantriplecomparedto2019.ReadmoreNote(s):Worldwide;2019to2022;*ForecastReadmoreSource(s):TransformaInsightsNumberofcellularIoTconnectionsworldwidefrom2022to2028,byconnectiontechnology(inmillions)CellularIoTconnectionsworldwide2022-2028,byconnectiontechnologyBroadband,CriticalIoT(45/5G)3,500MassiveIoT(NB-IoT/Cat-M)Legacy(2G/3G)3,2982,9793,0002,5002,5752,1871,9872,0001,5001,0005001,8431,6871,5911,4071,3691,147623907880818753687487467305236020222023*2024*2025*2026*2027*2028*29Description:ThenumberofcellularIoTconnectionswithcriticalIoTandbroadbandworldwidein2022was1.5bill