Despite a boom in use, eSIM revenues per gig drop thanks to stagnating wholesale data costs
Average revenue per gigabyte of travel eSIM data will generate $2.78 by 2025; a fall from $3.20 in 2023. This, finds Juniper Research, represents a drop of over 10% in the last two years in the face of stagnating wholesale data costs; leading to diminishing profit margins.
These declining margins on travel eSIM data are attributed to increased competition, as more vendors enter this growing market, and force established players to compete on pricing to acquire new customers.
“This intensifying competition is due to the emergence of travel eSIM enablers; players that enable non-telecom brands to launch their own solutions by lowering entry barriers. As more brands have launched travel eSIM solutions, vendors have shifted focus from protecting margins to retaining customers, by lowering package prices,” explains Molly Gatford, Senior Research Analyst at Juniper Research.
An extract from the report, Travel eSIM Market 2025-2030, is available as a free downloadBundling services is key to future growth
Juniper Research believes that travel eSIM providers must now increase their package value by bundling additional services, such as travel essentials or loyalty rewards, to differentiate offerings and attract new customers. This approach will allow providers to grow margins on travel eSIM packages and reduce their dependence on data revenue.
According to Gatford, “Amid growing competition, niche travel eSIM providers that add value through bundled services will outperform larger players that do not, as they can secure stronger margins. The market position of leading vendors is now threatened by these niche players, which offer value beyond data-only travel eSIMs.”
