The growing popularity of travel eSIMs is poised to drain up to $11 billion in annual roaming revenue from mobile operators by 2028 if they fail to adapt. Analysts from FDM CCS Insight project 134 million travel eSIMs will be used globally by the end of 2026, a substantial increase from 101.8 million in 2025. This market, valued at £649 million in 2025, is estimated to reach £3.2 billion by 2030, with over 326 handsets supporting eSIMs in 2025, nearly a 50% increase from the previous year.
Roaming revenue, which typically accounts for 3% to 5% of operators' total revenue and has high margins, is under severe threat. The economic disparity is stark; a Revolut eSIM offers 1GB of data for seven days at £3.49, while BT-owned EE charges £8 for 500MB over 24 hours. The European Union's current roaming regulations mandate operators to provide the same quality of service abroad as at home, a requirement not imposed on eSIM sellers, creating a regulatory gap that Brussels is now addressing. Wholesale data caps are also shrinking, falling to €1.10 per GB in 2026 and €1 per GB in 2027, further compressing operator margins.
Operators are not entirely passive, with 45% already exploring ways to detect and potentially surcharge travel eSIM traffic. Vodafone and Orange have even initiated white-label travel eSIM pilot programs. However, eSIM providers like Gigs, which powers Revolut and Klarna's mobile offerings, argue their structural advantage comes from lower customer acquisition costs and a superior user experience. While the market is expanding rapidly, some analysts note that the unit economics for many direct-to-consumer travel eSIM companies are worsening as the market quickly commoditizes. The EU views eSIMs as a development that could foster competition and switching, but seeks to manage potential market disorder.
