"SIM ecosystem players should remain positive despite continued high saturation levels and a possible future impact from planned SIM ID registration implementation," comments Jonathan O'Flaherty, Research Analyst at ABI Research. "The presented growth opportunity of rising SIM use cases in M2M applications and the emerging IoT may be enough to counterbalance any negative impact on the traditional SIM card market. Overall the mixture of the saturated and established nature of the traditional handset SIM card market, paired with growing M2M and IoT use cases, will create a market capable of future low level annual growth rates in the 2 to 4 percent range," he concludes.
With the rise of IoT and M2M use cases, business models will need to pivot, with an emphasis placed on supporting over-the-air (OTA) platforms and services including key management, life cycle management, firmware updates, and subscription management. Thanks to their respective TSM platforms, leading SIM card vendors including Gemalto, OT-Morpho, G&D, and Valid are well prepared for the road ahead. Future revenue growth will be primarily driven by platforms and services as opposed to the hardware centric revenue base which has brought the market to where it is today. This is where the future value resides within the SIM card market.