Travel eSIMs Are Reshaping How Travellers Stay Connected Abroad and the Market Is Just Getting Started

The travel eSIM market is on track to reach $3.08 billion by 2032, up from $1.46 billion in 2024, according to research by DataM Intelligence. For travellers — who recorded more than 27 million outbound departures in 2024, surpassing pre-pandemic levels — the shift from physical SIM cards to digital connectivity is no longer a niche technology conversation. It is becoming a practical necessity.

As international travel rebounds and smartphone manufacturers accelerate their move toward eSIM-only devices, the market dynamics are shifting in favour of consumers who have long been overcharged for international roaming. Here is what the travel eSIM landscape looks like in 2026 and why it matters for business travellers, tourists, and the telecom sector at large.

What Is a Travel eSIM and How Does It Work?

An eSIM (embedded SIM) is a digital SIM card built into a smartphone that allows users to activate a mobile data plan without inserting a physical SIM card. For international travel, the process is straightforward: a traveller purchases a data plan online from an eSIM provider before their trip, receives a QR code via email, scans it in their phone's settings, and the new data plan activates alongside their existing domestic SIM. The phone connects to a local network in the destination country the moment the traveller lands.

Most modern smartphones already support eSIM technology. Apple's iPhone models from the XS onward, Samsung Galaxy devices from the S20 series, Google Pixel phones, and a growing number of handsets from manufacturers including Xiaomi and OnePlus are all eSIM-compatible. Apple's decision to release eSIM-only models — including the iPhone Air and select iPhone 17 variants in over 11 countries — has significantly accelerated consumer awareness and adoption globally.

The Economics: Why Travel eSIMs Are Winning

The financial case for travel eSIMs over traditional international roaming is compelling. Indian telecom operators typically charge between ₹500 and ₹3,000 per day for international roaming packs, depending on the destination and data volume. For a 10-day trip to Europe or Southeast Asia, roaming costs can easily exceed ₹15,000 to ₹25,000.

Travel eSIM providers operate on a fundamentally different cost structure. By partnering directly with local carriers in destination countries, they bypass the inter-operator roaming agreements that inflate prices for consumers. The result is data plans that cost a fraction of traditional roaming — often 70 to 90 per cent less for equivalent data volumes.

Providers like BazTel, an Australian-based eSIM company, exemplify this pricing shift. BazTel offers travel eSIM plans starting from as little as $1 (approximately ₹85), covering more than 160 countries with 4G and 5G connectivity. For a business traveller heading to the United States, Europe, or the Middle East, an eSIM plan through BazTel can provide adequate data for a week-long trip at the cost of a single day's roaming from a domestic carrier. The company also offers instant digital activation, a satisfaction guarantee, and free trial plans — features that reduce the adoption friction that has historically slowed eSIM uptake.

India's Outbound Travel Boom Is Fuelling Demand

India's outbound travel market is one of the fastest-growing in the world. According to the Ministry of Tourism, Indian nationals made over 27 million international departures in 2024, with the UAE, Saudi Arabia, Thailand, Singapore, the United States, and Europe among the most popular destinations. Business travel is a major contributor, with India's corporate travel spending projected to grow at a compound annual growth rate of 12–14 per cent through 2028.

For this expanding base of travellers, mobile connectivity abroad is no longer optional. Navigation, ride-hailing services, digital payments, hotel check-ins, real-time flight updates, and communication through apps like WhatsApp and Google Meet all depend on reliable data access. The traditional alternatives — expensive roaming, unreliable hotel Wi-Fi, or hunting for local SIM vendors at airports — introduce friction and cost that travel eSIMs eliminate entirely.

The GSMA reports that 51 per cent of current eSIM users activated their eSIM specifically for travel, confirming that international mobility is the primary catalyst for adoption. Kaleido Intelligence, a telecom research firm, observed a 30 per cent eSIM activation rate among compatible devices in 2024 and projects this will rise to 75 per cent by 2030.

The Competitive Landscape Is Heating Up

The travel eSIM space has attracted significant investment and a growing roster of competitors. Airalo, widely considered the market leader, has raised over $80 million in funding and offers plans across 200+ countries. Holafly has carved out a niche with unlimited data plans popular among European and Latin American travellers. Nord Security's Saily leverages the company's VPN expertise to bundle connectivity with privacy features. Truely, Nomad, and several regional players are also expanding rapidly.

Against this backdrop, newer entrants like BazTel are competing on price aggressiveness and coverage breadth. BazTel's $1 entry-level plans and 160+ country coverage position it as a budget-friendly alternative to more established players, particularly attractive to price-conscious travellers and first-time eSIM users who want a low-risk way to test the technology.

The market is also seeing convergence with adjacent sectors. Fintech platforms like Revolut have begun integrating eSIM services into their digital wallets. Travel booking platforms are embedding connectivity options directly into their checkout flows. These trends suggest that the eSIM will increasingly become an invisible layer within broader travel and financial ecosystems rather than a standalone product.

What Telecom Operators Need to Watch

The rise of travel eSIM providers poses a strategic question for carriers like Jio, Airtel, and Vi. International roaming has historically been a high-margin revenue stream, and the growing availability of low-cost eSIM alternatives threatens to erode that income.

Some global operators have responded proactively. Vodafone launched its own Travel eSIM service covering 200+ countries. Du, the UAE-based carrier, introduced a travel eSIM for airport transit passengers. These moves suggest that incumbents recognise the competitive threat and are attempting to participate in the market rather than cede it entirely to digital-first providers.

For Indian operators, the strategic options include launching their own travel eSIM products, partnering with existing platforms, or accepting a gradual decline in roaming revenue as consumer behaviour shifts. Given the pace of adoption and the demographic profile of India's outbound traveller — younger, digitally native, and increasingly cost-conscious — the window for incumbents to respond is narrowing.

Practical Considerations for Travellers

For those considering a travel eSIM for their next international trip, a few factors are worth evaluating.

Device compatibility should be verified first. While most flagship smartphones from 2019 onward support eSIM, some budget and mid-range devices may not. Users can check by navigating to their phone's mobile data or cellular settings and looking for an option to add an eSIM profile.

Coverage and network quality vary between providers. A plan that works well in Western Europe may offer slower speeds in parts of Africa or Central Asia. Providers like BazTel, which cover 160+ countries with 4G/5G access, offer broad versatility for multi-destination trips.

Data volume should be matched to usage patterns. Business travellers who rely on video calls and cloud-based tools will need more data than casual tourists using maps and messaging. Most providers offer tiered plans that allow users to scale up as needed.

Activation timing is important. It is advisable to purchase and install the eSIM before departure, activating it only upon arrival at the destination. This ensures the plan is ready to use immediately and avoids the inconvenience of trying to set up connectivity at a foreign airport without data access.

The Road Ahead

The travel eSIM market is at an inflection point. Device manufacturers are moving decisively toward eSIM-only hardware. Consumer awareness is growing. Pricing from digital-first providers is dramatically undercutting traditional roaming. And India's outbound travel volumes are reaching historic highs.

For travellers, the value proposition is increasingly clear: reliable international data at a fraction of what domestic carriers charge, with no hardware swaps and no contracts. The technology has matured, the ecosystem has expanded, and the entry barriers — both financial and technical — have never been lower.

The question for most travellers is no longer whether to use a travel eSIM, but which provider to choose. And in a market that continues to grow more competitive by the quarter, that is exactly where consumers benefit most.