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Smart Insights Report “eUICC, a disruption in the SIM market” demonstrates adjusted SIM shipments remain strong
October 2012 by Intelling
Intelling publishes a new Smart Insights Report
“eUICC, a disruption in the SIM market” that delivers a thorough analysis of the eUICC
(embedded Universal Integrated Circuit Card) technology and its potential in the
consumer handset market. The eUICC concept consists in replacing the detachable SIM
that has been present since the inception of mobile communication by a chip soldered on
the handset motherboard performing the same functions. Such a technology evolution
may trigger changes in the whole mobile communication ecosystem, as the customer
relationship management may shift from the mobile network operator to the handset
vendor.
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.
More information about Smart Insights Report “eUICC, a disruption in the SIM market”
is available at www.smartinsights.net
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