Connected vehicles to boost e-SIM demand by 3 million in 1-1.5 years
connected vehicles is likely to spur demand for embedded sims (e-sims) by as much as 3 million over the next 12-18 months. This, industry experts said, would drive growth in enterprise business for telecom operators.
Experts predict the widespread adoption of e-SIMs in automobiles will quadruple the demand for semiconductor chips by 2025.
“We believe that the number of OEM (original equipment maker) fitment connected vehicles could increase by around 2-3 million over the next 12-18 months,” a spokesperson for Bharti Airtel said, adding that demand for e-sims is led by manufacturers’ focus on launching internet-enabled vehicles with connectivity and smart features at the core of the product offering.
Currently, the e-sim market for telcos is just less than 1% of enterprise revenues of telcos, according to industry estimates.
However, with the rollout of 5G enterprise and increased uptake of Internet of Things (IoT), the share is expected to grow multifold over the next few years.
Along with e-sims, the growing popularity of connected vehicles will also lead to a further increase in demand for semiconductor chips.
Sunjay Kapur, chairman, Sona Comstar, said both regulations and customer preferences are changing, leading to increasing use of semiconductor chips in vehicles, and opening up more opportunities for component manufacturers.
“Four years back, people were apprehensive the shift to electric will render obsolete the components required for internal combustion engine vehicles. But today, 40% of the vehicle is software and this change has happened so rapidly,” said Kapur.
For instance, as much as 47% of the 50,000-odd customer orders for the facelift of Kia India’s Seltos sport-utility vehicle, launched in July, are for
