In the rapidly evolving landscape of digital connectivity, eSIM (embedded SIM) technology is emerging as a game-changer, particularly when framed through the lens of Software as a Service (SaaS) business models. Unlike traditional physical SIM cards, eSIMs are built directly into devices, allowing for remote provisioning, seamless network switching, and subscription-based management—all hallmarks of SaaS principles like scalability, recurring revenue, and on-demand access.
As we approach the latter half of 2025, eSIM businesses are not just riding the wave of technological advancement; they are redefining telecom as a software-driven service. This essay explores why eSIM ventures are becoming the hottest trend in SaaS, drawing on market growth, operational efficiencies, innovative applications, and future-proof business models.
First, let’s clarify the synergy between eSIM and SaaS. eSIM technology enables “eSIM as a Service” (eSaaS), where companies provide connectivity solutions via cloud-based platforms, charging on a pay-per-use or subscription basis. This mirrors classic SaaS offerings like Salesforce or Zoom, where users access features remotely without hardware dependencies. For instance, platforms like RiPSIM offer a fully SaaS-based, on-demand eSIM management system that allows enterprises to generate, provision, and manage eSIM profiles in real-time.
Similarly, Amdocs promotes eSIM as-a-service with a “pay per use” model, reducing carbon footprints by over 90% and enabling “try & buy” options for rapid market entry. These models shift telecom from a hardware-centric industry to a software one, where updates, activations, and customizations happen over-the-air, fostering recurring revenue streams akin to SaaS subscriptions.
The explosive market growth underscores why eSIM businesses are sizzling in the SaaS space. The global eSIM market, valued at $1.46 billion in 2024, is projected to skyrocket to $6.29 billion by 2030, boasting a compound annual growth rate (CAGR) of 20%. This surge is driven by nearly 2 billion active eSIM devices expected by the end of 2025, marking a pivotal shift in mobile network connectivity.
In the travel sector alone, the eSIM market is set to hit $365 million in 2025 with a 12.4% CAGR, as digital nomads and globetrotters demand seamless, borderless data plans. For SaaS-oriented businesses, this translates to low-barrier entry points: companies like Airalo and eSIM Go empower even small enterprises to resell digital connectivity without massive infrastructure investments, turning eSIM into a white-label SaaS product.
The integration with 5G and IoT further amplifies this, with cellular IoT modules featuring eSIM reaching 650 million units in 2023 and projected to grow to 3.2 billion by 2030 at an 18% CAGR. This IoT boom positions eSIM SaaS as essential for industries like logistics and utilities, where remote device management generates ongoing subscription fees.
Operational efficiencies make eSIM businesses particularly attractive in the SaaS ecosystem. Traditional SIM cards involve physical distribution, activation, and replacement, incurring high logistics costs—up to 80% more per lifecycle compared to eSIMs. eSIM eliminates these pain points through remote provisioning, allowing users to switch carriers or plans via an app, much like upgrading a SaaS tier.
This flexibility is a boon for enterprises: platforms like Simlessly offer zero or low CapEx models with on-demand iSIM (integrated SIM) enablement, scaling profits without proportional costs. In 2025, as eSIM adoption hits 60% of smartphone shipments and 99% of smartwatches, businesses can leverage this for personalized, data-driven services.
For example, eSIM VPN integration enhances security and privacy, appealing to corporate clients seeking compliant, global scalability. This aligns with broader SaaS trends in 2025, such as AI-driven personalization and data strategies, where eSIM platforms use analytics to optimize connectivity and upsell features.
Innovation in B2B applications is another reason eSIM is the new SaaS darling. The eSIM industry spawns profitable SaaS ideas tailored for enterprises, such as automated provisioning tools, compliance management dashboards, and analytics platforms for fleet tracking. Take Giesecke+Devrient’s eDES (eSIM Device Enablement Service), which lets companies remotely order and manage eSIMs for employee devices, embodying SaaS’s remote accessibility.
In fintech, embedded eSIMs enable secure, always-on banking apps, while in travel, monetization platforms integrate seamlessly with apps for digital products on a SaaS basis. Mobile Virtual Network Operators (MVNOs) are expanding globally via eSIM, with reseller platforms like Telnyx unlocking revenue across industries from travel to IoT.
As satellite integration and private 5G networks emerge, eSIM SaaS will support hybrid connectivity, projecting travel eSIM services to balloon to $8.9–$10.1 billion by 2028. This versatility attracts investors, mirroring how SaaS disrupted software by offering agility over ownership.
Geopolitical and consumer shifts further fuel eSIM’s SaaS appeal. In a post-pandemic world, remote work and global mobility demand borderless connectivity, which eSIM delivers without roaming hassles. By 2030, smartphone eSIM connections could reach 6.7 billion, covering 76% of devices worldwide, with North America nearing 98% penetration.
For SaaS businesses, this means tapping into emerging markets like Asia-Pacific, where IoT ecosystems drive adoption. Regulatory pushes, such as GSMA standards for zero-touch provisioning, standardize eSIM, reducing fragmentation and enabling SaaS-like interoperability. Challenges like device compatibility exist, but innovations like iSIM (with 160% CAGR) promise even slimmer, more efficient integrations.
eSIM businesses are the new hot SaaS because they blend telecom’s ubiquity with software’s flexibility, delivering scalable, subscription-driven value in a connected world. With market projections pointing to multi-billion-dollar opportunities, operational cost savings, and endless B2B innovations, eSIM ventures are poised to dominate 2025 and beyond.
As traditional telecoms pivot to digital models—evidenced by the rise of eSIM resellers and management platforms—these businesses aren’t just hot; they’re essential for the next era of connectivity. Entrepreneurs eyeing SaaS should look no further: eSIM is where hardware meets the cloud, creating endless possibilities for growth and disruption