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A new dawn for IoT eSIM adoption

BoldThemes by BoldThemes
March 20, 2025
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A new dawn for IoT eSIM adoption
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A new dawn for IoT eSIM adoption

A new dawn for IoT eSIM adoption

By Luc Vidal-Madjar, Head of IoT and Roaming Solutions at BICS, a Proximus Global company.

Connectivity technology has an unfortunate reputation for ‘nearly there’s. Technology that promises much, but struggles to get off the ground. In recent memory, 5G, NB-IoT, and satellite broadband could all fit this description.

Many will argue that the eSIM also falls into this category. The technology has existed for over a decade, and while the consumer market is starting to gain ground, enterprise IoT adoption is still lagging.

The main reason for this? Provisioning and managing eSIMs is complicated. Standards make a big difference here. It’s no coincidence that the consumer market has had its standard (SGP.22) for a few years and is comparatively booming.

However, with the arrival of GSMA SGP.32, things are about to change.

Why the eSIM?

Let’s talk about why the eSIM matters. As mentioned, the consumer market is finally adopting the technology and experiencing growth. Smartphones are the big driver here. According to the GSMA, half of all smartphone connections will use eSIM technology by 2028. For consumers, the main benefits are security, the ability to have multiple profiles for one phone, and increasingly – travel ‘eSIMs’. Essentially, these allow you to set up and use local connectivity when traveling abroad instead of roaming charges.

For enterprise IoT, the same enhanced security and seamless connectivity across borders make it ideal for large-scale deployments. There’s also the scalability factor. Using eSIM makes the numerous devices you need to manage for IoT easier – especially if you’re managing devices around the world. With a physical SIM, you’d need to match devices to the right SIM. With eSIM, it can all be done remotely over the air.

For example, take an EV charger company rolling out connected devices across multiple countries. With the eSIM, a single platform can efficiently manage connectivity for the entire global fleet, ensuring consistent connectivity across diverse markets. While you could do this with a physical SIM, having an embedded SIM streamlines the process and reduces the logistical challenge. The ability to remotely ‘provision’ the eSIMs also makes the initial rollout much easier. Even if you are manufacturing these components in a single factory, instead of physically installing SIM cards at the location, eSIM technology enables remote configuration, eliminating the need for Original Equipment Manufacturers (OEMs) to track device destinations and pair SIMs manually.

In short, if you’re building IoT on a global scale, eSIM makes deployment and provisioning of connected devices easier and less labor-intensive.

Benefit or barrier?

However, the scale that eSIM operates across is exactly what has held it back. Ironically, this technology is often too complex for enterprises to deploy. Successful implementation requires coordination between SIM vendors and mobile operators, adding layers of complexity to a technology that was supposed to take complexity away.

The real challenge lies in the first eSIM standard for M2M (SGP.01/.02), developed about a decade ago. While enterprises need the flexibility to manage eSIMs remotely, this standard relies on intricate integrations between eSIM platforms. As a result, the upfront costs of reprogramming SIMs are often prohibitive, making large-scale adoption uneconomical. As a consequence, enterprise adoption has remained low.

Consumer eSIM, on the other hand, doesn’t face this problem. The GSMA introduced the SGP.22 standard in 2017, outlining eSIM provisioning for consumer devices like smartphones, tablets, and smartwatches. This has made all the difference for eSIM adoption in smart devices. However, it is worth noting that consumer devices have one advantage over enterprise IoT – namely, the consumer. Standards for setting up say a smartphone can rely on the user to help ‘self-provision’ and set up the device. When dealing with hundreds or thousands of industrial IoT devices, you don’t have this luxury.

So, getting a streamlined standard for IoT deployments is harder. And while it’s taken longer for this reason, it’s finally here.

Welcome to the eSIM era

The GSMA’s SGP.32 standard is built specifically for enterprise IoT eSIM deployments. It simplifies the IoT ecosystem which can make deployment and integration so complicated. The new standard establishes three key ecosystem roles: network operator, reseller, and eSIM orchestrator.

This third role is perhaps the most significant. It’s a platform or product that manages and automates the provisioning, activation, and lifecycle of eSIM profiles. While many businesses have unofficially occupied this role, this standardization is needed. It will help the eco grow and give businesses more confidence to deploy eSIMs. In practice, this orchestration role will be played by ‘eSIM hubs’ – centralized platforms that streamline connectivity across multiple operators and networks. This will help remove friction from eSIM deployments, making large-scale IoT rollouts more manageable.

With the right standards in place, the eSIM is set to fulfill its promise. It moves from a ‘nearly there’ to something that makes commercial and operational sense for businesses. With it, connectivity becomes much simpler, and borders stop being barriers to IoT growth.

However, widespread adoption depends on shifting market perceptions. Industry leaders must continue educating businesses to ensure they embrace the eSIM in 2025 and beyond.

The post A new dawn for IoT eSIM adoption appeared first on IoT Business News.

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