Smart cities are driving the growth in eSIM module shipments, according to market watcher Juniper Research, which predicts shipments to increase from 430 million in 2020 to 822 million in 2025, a growth of 90%.

The research identified the public sector as the fastest-growing area, with shipments of eSIM-enabled public sector sensors expected to increase by 500% over the next four years, as smart city services benefit from the flexibility of the growing eSIM ecosystem.

The research forecast that smart street lighting sensors would account for 88% of eSIM shipments within the public sector by 2025. The report predicts that smart city providers will leverage cellular networks, underpinned by eSIMs, as gateways to low-power connections for the monitoring and management of smart city services.

The report predicts that the USA will remain the largest market for public sector eSIM adoption, accounting for 30% of eSIMs installed in devices by 2025. It highlighted that operators in North America had led the development and roll-out of 5G networks, which had enabled new levels of city-wide automation and information sharing in smart cities. Government authorities in other regions must follow the example set by smart cities in North America to ensure the smooth transition from legacy technology to smart sensors underpinned by robust eSIM technology.

The study urges eSIM vendors to develop 5G-capable modules to capitalise on the growth of 5G standalone networks, which enable the deployment of 5G-enabled eSIMs within smart cities.

“To support smart city initiatives, eSIM vendors must invest in the development of 5G-enabled form factors,” said research author Scarlett Woodford. “By combining flexible network connectivity with high bandwidth transmission and reduced latency, 5G-capable modules will enable local authorities to monitor connected sensors in real time and allocate resources accordingly.”

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.