Global tech strategists, Juniper Research, have released a new report indicating a decline in travel eSIM revenue. The average revenue per gigabyte is expected to fall from $3.20 in 2023 to $2.78 by 2025. This over 10% decrease in revenue is mainly due to stagnant wholesale data costs and increased competition in the market.
More vendors are entering the travel eSIM sector, increasing competitiveness, and compelling established players to lower prices. As Molly Gatford from Juniper Research explains, the rise of travel eSIM enablers is lowering entry barriers, leading more brands to launch their own solutions. As a result, many vendors have shifted their focus from maintaining profit margins to retaining customers through competitive pricing.
Bundling Services for Competitive Edge
However, the strategy of solely competing on price might not be sustainable in the long term. Juniper Research suggests that providers need to enhance their offerings by bundling additional services such as travel essentials or loyalty rewards. By doing this, they could improve the value of eSIM packages and decrease reliance on data revenue alone.
Adding bundled services will not only attract more customers but also offer a way to generate higher margins compared to traditional data-only packages. Gatford emphasizes that businesses that focus on creating value beyond data alone will outpace larger competitors with less diversified offerings.
The study also provides a comprehensive understanding of the travel eSIM market landscape from 2025 to 2030. It includes in-depth analysis and forecasts for over 60 countries, detailing opportunities for growth and expansion in the sector.
Challenges and Opportunities
The increasing competition is both a challenge and an opportunity for providers. On one hand, the pressure to lower prices reduces profit margins. On the other, it encourages providers to innovate and differentiate their services. The companies that can successfully bundle services and create unique customer experiences will stand out in the market.
For industry stakeholders, it’s crucial to monitor market trends and adapt quickly to maintain a competitive edge. The evolving eSIM market presents endless opportunities for growth, provided companies strategically navigate through competition and market demands.
Juniper Research, over its 20-year history, continues to offer significant insights to help companies navigate these complexities. Their analysis provides a foundation for businesses to make informed, strategic decisions in a rapidly changing industry landscape. Stay informed with these insights to remain competitive in the future of the eSIM market.
