From niche to mainstream: the benefits and security of eSIMs

eSIM market is poised to grow as the price for the service declines and users prefer a more eco-friendly connection solution. Are they safe from hacking, though?

At the moment, eSIM data plans are 50-80% cheaper than traditional roaming. As eSIM adoption continues to rise, experts expect pricing to become more competitive.

“Beyond convenience, eSIMs reduce costs for carriers by eliminating the need for physical SIM production and their eco-friendly nature aligns with global sustainability trends (eSIMs reduce plastic waste,” said Eric Morhenn, the chief commercial officer at LotusFlare, leading the strategy behind Nomad eSIM’s global connectivity solutions.

We sat down with him to talk more about the eSIM market.

eSIM cards have been around for quite some time. However, recently there’s been an uptick in its usage. Why?

eSIM technology isn’t new, but its recent surge in usage can be attributed to several key developments. First, major smartphone brands like Apple, Samsung, and Google have made eSIMs standard in most of their flagship devices, removing the hardware limitations of traditional SIM cards. As of March 2025, Samsung leads with 30 eSIM-capable smartphone models, followed by Apple with 24, and Google and Motorola with 20 each. Apple has gone all-in into eSIMs such that it is practically impossible in 2025 to purchase an Apple phone that isn’t eSIM compatible.

Second, mobile carriers worldwide — now numbering over 400 — have embraced eSIM compatibility, simplifying the process of switching networks seamlessly. The travel industry has played a significant role in this growth, with services like Nomad eSIM offering instant, affordable global data, effectively bypassing expensive roaming fees.

Beyond convenience, eSIMs reduce costs for carriers by eliminating the need for physical SIM production (eSIMs eliminate physical SIM production and logistics, reducing costs for carriers and consumers) and their eco-friendly nature aligns with global sustainability trends (eSIMs reduce plastic waste).

How do you forecast the market growth in the near future?

The eSIM market is poised for rapid growth, with projections indicating it will expand from $4.7B in 2023 to $16.3B by 2027. This growth will be driven by several factors, including the expansion of 5G networks, where eSIMs enable users to switch between carriers for optimal coverage. Another key driver is the Internet of Things (IoT), with eSIMs becoming central to the connectivity of devices like connected cars, smartwatches, and industrial sensors.

Government regulations, particularly in the EU and the US, are also encouraging eSIM adoption to break carrier monopolies and provide consumers with more freedom of choice. Last I read, Revolut, Nubank, and bunq now offer eSIM services, merging telecom with fintech.

What are the common fears stopping people from using eSIMs more?

Despite the clear benefits, some hesitations remain. One of the main concerns is security — some users believe eSIMs are more vulnerable to hacking, although they are, in fact, more secure than physical SIMs. Older devices that lack eSIM support also leave some users stuck with traditional SIMs. Another barrier is the fear of carrier lock-in, as some users worry they may be trapped with a single provider, though regulations are improving in this area.

Lastly, the setup process can be intimidating for less tech-savvy users who find QR-code activation less intuitive than simply inserting a physical SIM. Nomad, however, is sidestepping that issue by making QR-less install, or what we call “Direct Install” where the push of a button downloads the eSIM onto your phone, the default for most of our users.

However, as eSIM technology continues to evolve and become more user-friendly, many of these concerns are being addressed through improved security measures and simplified activation processes.

What other use cases are there for eSIMs, besides travel?

While eSIMs are primarily associated with travel, the technology is expanding into a range of other applications. IoT devices, such as connected cars (e.g., Tesla, BMW) and smartwatches (e.g., Apple Watch), rely on eSIMs for continuous connectivity. Professionals also benefit from dual-SIM functionality, allowing them to separate work and personal lines without needing multiple devices. In emergency situations, eSIMs enable immediate network access, ensuring communication when traditional networks fail. Additionally, temporary eSIMs are becoming popular for short-term use at events like festivals or conferences, providing data without the need for long-term contracts.

Are physical SIM cards more (less) secure than eSIMs?

eSIMs are generally more secure than physical SIMs. They eliminate the risk of physical theft, making "SIM swapping" attacks much more difficult. That said, although more difficult, SIM swap attacks are still possible with eSIMs, depending on the security measures of the service provider.

In the event of a lost device, carriers can remotely disable the eSIM, a feature not possible with a physical SIM. While traditional SIMs can be cloned or subject to social engineering attacks, eSIMs use encrypted provisioning, adding an additional layer of security.

Both eSIMs and physical SIM cards have their vulnerabilities, eSIMs generally offer a higher level of security and privacy protection due to their embedded nature and advanced encryption techniques. Hence, user education is crucial, as some people still perceive eSIMs as less secure due to unfamiliarity, even though the technology itself is inherently safer.

How will the pricing change in the near future?

As eSIM adoption continues to rise, we can expect pricing to become more competitive. Currently, eSIM data plans can be 50–80% cheaper than traditional roaming, and this price gap is likely to expand. We anticipate the rise of AI-driven dynamic pricing, with carriers offering pay-as-you-go or location-based pricing tailored to individual usage patterns. Additionally, we expect to see eSIMs bundled with travel packages, IoT subscriptions, and telecom plans, making them a standard feature rather than an optional add-on.