The rise of travel eSIMs is posing a substantial threat to the traditional roaming revenue of mobile operators, which currently accounts for 3% to 5% of their total income and is characterized by high margins. Analysts at FDM CCS Insight estimate that 134 million travel eSIMs will be used globally by the end of 2026, a significant jump from 101.8 million in 2025. This rapid growth, with travel eSIM take-up increasing by 85% in 2025, could lead to a loss of up to $11 billion in annual roaming revenue for operators by 2028 if they fail to adapt. Wholesale data caps are also falling, further compressing margins, to €1.10 per GB in 2026 and €1 per GB in 2027.
The convenience and cost-effectiveness of travel eSIMs are key drivers of their adoption. For instance, a Revolut eSIM offers 1GB of data for seven days at £3.49, significantly undercutting traditional roaming charges like BT-owned EE's £8 for 500MB over 24 hours. Hermann Frank, CEO of Gigs, highlights the structural advantage of eSIM providers, noting they avoid customer acquisition costs and offer a superior user experience, often requiring just a click within an app. The market value for travel eSIMs, estimated at £649 million in 2025, is projected to reach £3.2 billion by 2030.
While the EU's 2022 Roaming Regulation obliges operators to provide the same quality of service abroad as at home, eSIM sellers are not bound by the same rules, creating a regulatory gap that Brussels is now addressing. The European Commission's 2025 roaming-market review acknowledges eSIMs as an important development that could boost competition but also warns of potential consumer confusion due to divergent fair-use limits. Operators are not entirely passive, with 45% reportedly exploring ways to detect and surcharge travel eSIM traffic. Some, like Vodafone and Orange, have even launched their own white-label travel eSIM pilot programs to counter the threat and potentially recapture some of the market.
