How eSIMs Bring Universal Mobile Data Access to Travelers

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The rise of embedded SIM solutions (eSIMs) is transforming how travelers use their mobile devices. According to a report by Juniper Research, the global eSIM market will grow from $4.7 billion in 2023 to $16.3 billion by 2027 — a 249 percent growth rate. This is largely due to increased consumer demand for travel, the expansion of IoT (Internet of Things) applications, and the widespread adoption of eSIM-enabled devices, such as Apple’s release of the eSIM-only iPhone 14 in the U.S. 

Cost savings are a significant factor in eSIM adoption. Juniper Research expects users to spend $8.57 per GB of data roaming in 2024, while eSIM packages will cost $5.50 per GB. This 35 percent cost-saving provides serious value for international travelers.

The Rising Demand for Mobile Data in Travel

As travelers increasingly turn to their smartphones for everything from navigation to translation, the demand for data has skyrocketed. This trend isn’t limited to travel — overall data usage is rising significantly year-over-year.

“People are using more data than ever today. We see minimal use of voice and SMS services. Fewer people find it necessary to have a local number while traveling when they can use apps like WhatsApp for calls. A reliable data connection is all that’s required to stay connected,” said Terry Guo, co-founder of Nomad, an eSIM services provider that’s reshaping how travelers connect globally with tailored plans that provide connectivity without the typical high roaming costs.

The shift toward digital payments is another trend affecting the need for constant connectivity. As more economies move towards cashless transactions, travelers find maintaining access to online payment platforms critical. 

Additionally, the rise of remote work continues to influence travel habits and data usage. The flexibility to work from anywhere has led to a rise in blended travel, where professionals combine travel with their work commitments. This lifestyle relies heavily on data for bandwidth-intensive tasks that require reliable internet connections, such as video conferencing and cloud-based collaboration.

Making Mobile Data Accessible for Travelers

Recognizing the growing need for flexible and affordable data access, Nomad employs eSIM technology to redefine how travelers interact with mobile data services globally. The company has introduced flexible data packages designed to suit multiple travel patterns and usage needs, including single-country, regional, and global plans. 

“Customers want predictability and control over their data expenses, so we’ve introduced clear, capped plans. We categorize them into three types based on data volume — GB-based plans, daily data plans, and unlimited plans. Whether users need a few gigabytes for a short trip or unlimited data for extensive travel, they appreciate knowing exactly what they’re getting and how much it costs upfront,” said Guo. 

The company is also experimenting with services that add value beyond just data. 

“We’re exploring bundles that include services such as insurance, emergency assistance, and access to co-working spaces in addition to data. These services will provide a more integrated travel support system by addressing the nuances of travel logistics. These are still in the experimental phase but are a major step forward in our commitment to serving travelers’ comprehensive needs,” said Guo.

Competitively, Nomad positions itself as a more affordable alternative to pay-as-you-go roaming services, which can be prohibitively expensive and lead to unexpected charges. 

“We’re significantly cheaper than local operators and even other eSIM companies because we work with a broad range of operators from whom we buy data. Because we’re one of the largest data eSIM providers, we have the pricing power to buy in bulk and commit upfront. We then pass these savings directly to our customers,” said Guo.

Working with multiple operators has implications for both cost and performance. It allows Nomad to dynamically switch between networks for the best possible connectivity.

“Our ability to switch between operators gives us an edge over local services tied to a single provider. This flexibility often results in better connectivity for our users, as we can choose the best network in real-time based on actual performance data,” said Guo.

Impact on Traditional Roaming

The eSIM industry’s growth has raised concerns among traditional roaming operators, who question its impact on their revenue streams and potential losses from inbound and outbound roaming.

According to Guo, these concerns are largely unfounded. While it’s true that some users may opt for Nomad’s services instead of using their home network’s roaming offers, this represents a relatively small percentage of the overall market. The belief that Nomad users are less likely to purchase local SIM cards in their destination countries is also largely inaccurate, according to Guo.

“We do attract some users who might otherwise have relied on traditional roaming, but the majority of our customers are actually what we call ‘silent roamers’ who previously avoided data roaming altogether. Our business model expands the market, not cannibalizes existing revenue streams,” he said. “More people are using data now than before, and that’s where most of our revenue comes from. It benefits everyone, including the operators, since we still buy data from them.”

Simplifying eSIM Management and Connectivity

Nomad integrates management features directly into user operating systems. Apple and Android users can now easily manage up to 10 eSIMs, activating, deactivating, or deleting them as needed. This integration lets travelers adjust their settings directly from their devices without juggling multiple physical SIM cards.

The company is also innovating with the concept of a persistent eSIM. This means travelers buy one Nomad eSIM and simply purchase and download new plans. This avoids the confusion of multiple eSIMs and plan overlaps. Innovations such as real-time data tracking and the ability to adjust plans on the fly via an intuitive app interface also help increase transparency and control over data usage, key factors in improving customer trust and loyalty.

Another area Nomad is focusing on is expanding its network of connectivity providers. The company aims to establish new partnerships with satellite connectivity providers to improve service quality in areas where conventional cellular networks fall short, such as air and sea travel and remote locations.

“We’re tapping into advanced technologies like AI to optimize network selection dynamically. This could allow the system to automatically choose the most cost-effective and reliable networks. We’re constantly exploring ways to use technology to ensure our customers always have the best possible connection, tailored to their current location and network conditions,” said Guo.

Additionally, the company is also implementing a B2B strategy. While the core connectivity product remains largely the same, it has had to adapt its management and user experience to accommodate enterprise customers’ needs.

“We’re simplifying the management process for IT administrators and employees. This includes seamless installation and intuitive tools for expense management,”  said Guo.

As the industry continues to push the boundaries of eSIM technology, it’s clear that the future of travel will be more connected than ever. 

“As we look to the future, we’re not just focused on providing reliable connectivity but also on building a community for frequent travelers. We’ll see stronger loyalty and retention if we can create a sense of belonging. A connected community of digital nomads will stay with us for the long term, and that’s incredibly valuable for them and our business,” Guo said.

GetNomad is offering Skift readers a 10% discount on eSIMS with the code SKIFT10. Click here for more.

This content was created collaboratively by Nomad and Skift’s branded content studio, SkiftX.