The adoption of eSIM and iSIM know-how in mobile IoT connectivity is anticipated to see progress, in response to new insights from IoT Analytics. Primarily based on the most recent IoT eSIM Modules and iSIM Chipsets Market Tracker and the Mobile IoT Modules & Chipsets Safety Tracker, the put in base of eSIM-capable IoT connectivity modules reached 650 million in 2023.
The just lately printed analysis article particulars that eSIM know-how is widely known for its potential to revolutionize mobile IoT connectivity by facilitating distant SIM provisioning, world connectivity, and enhanced safety via hardware-based options.
Regardless of these benefits, adoption has been slower than anticipated resulting from challenges with distant SIM provisioning and fragmented requirements. Nevertheless, new specs—SGP.31 and SGP.32 from the GSMA—are actually easing these limitations, offering producers and end-users with clearer frameworks to speed up deployment.
Key insights:
The put in base of eSIM-capable (together with iSIM) IoT connectivity modules reached 650 million in 2023, in response to IoT Analytics’ IoT eSIM Modules and iSIM Chipsets Market Tracker and Mobile IoT Modules & Chipsets Safety Tracker (each up to date September 2024).
eSIM know-how represents a paradigm shift in mobile IoT connectivity, enabling distant SIM provisioning, world connectivity, and enhanced safety via a hardware-based method.
Regardless of the advantages, eSIM adoption has been slower than anticipated resulting from distant SIM provisioning complexities and divergent requirements; latest eSIM IoT specs—SGP.31 and SGP.32 from the GSMA—assist producers and finish customers overcome these challenges.
IoT Analytics forecasts that mobile IoT modules with eSIM know-how will expertise accelerated progress beginning in H2 2025.
Choose quotes:
Satyajit Sinha, Principal Analyst at IoT Analytics, feedback that “In Q3 2024, we observed a notable shift in CEO discussions toward AI applications, renewable energy, IT resilience, and the upcoming U.S. elections. Despite this shift, economic concerns remained the most discussed theme overall. Historically, changes in CEO discussion themes have been indicators of shifts in sentiment and corporate investment behavior. I expect these emerging topics to play a more prominent role in corporate decision-making moving forward.”
The function of eSIM for IoT: Higher safety, simplified roaming, and simpler provisioning—however solely 33% of mobile IoT units use it
IoT connectivity and the rise of eSIM for IoT
Double-digit progress anticipated in linked IoT units. By the tip of 2023, there have been 16.6 billion linked IoT units, in response to latest IoT Analytics reporting. This quantity is anticipated to surpass 40 billion in 2030 (rising at 14% CAGR), pushed by the necessity for knowledge assortment and course of and mechanical automation in key industries comparable to manufacturing, healthcare, transportation, and sensible cities.
21% of linked IoT units use mobile connectivity. Of the 16.6 billion linked IoT units in 2023, 3.56 billion (or 21%) relied on mobile connectivity, in response to IoT Analytics’ World Mobile IoT Connectivity Tracker and Forecast (printed June 2024). This quantity—together with mobile connectivity’s general share of IoT connections—is anticipated to develop with the rising adoption of 5G applied sciences. Little doubt, mobile IoT has turn into vital for purposes requiring mobility and dependable long-range protection—the query turns into about mobile IoT scalability and safety.
eSIM know-how addresses limitations of conventional SIM playing cards in mobile IoT connectivity. Historically, mobile IoT connections relied on bodily SIM playing cards, which have been typically locked into particular suppliers and required swapping when coming into new areas, international locations, and even protection areas inside international locations, which isn’t possible at scale and will be expensive and labor-intensive. Moreover, mobile IoT units leveraging conventional SIM playing cards typically ship with out devoted hardware-based safety, that means they both depend on non-hardware-based safety options or lack any safety options. Nevertheless, a contemporary SIM-type know-how helps handle these deployment and safety limitations: embedded SIMs (eSIMs).
Because the identify suggests, eSIMs (together with built-in SIMs, or iSIMs) are a part of the mobile IoT module {hardware}. They’re distinctive and programmable, permitting for distant, over-the-air community provisioning of community profiles. Additional, eSIMs embrace embedded safe components, and being rooted within the mobile IoT modules as distinctive components, they improve the integrity of the modules and the IoT units into which they turn into built-in (extra on these advantages beneath).
33% of shipped mobile IoT modules have been eSIM-capable. Based on IoT Analytics’ World IoT eSIM Modules & iSIM Chipsets Market Tracker (up to date September 2024), a 3rd of the full mobile IoT modules shipped in Q2 2024 have been eSIM-capable—that means they included an eSIM within the module—in comparison with 62.3% utilizing bodily SIM playing cards, with the rest using Comfortable SIM know-how. Additional, since eSIM know-how incorporates embedded safe components that shield the integrity of mobile IoT modules, because of this 33% of mobile IoT modules shipped included devoted hardware-based safety, in response to IoT Analytics’ World Mobile IoT Modules & Chipsets Safety Tracker (additionally up to date September 2024).
How eSIM know-how works in IoT
An eSIM is an built-in circuit that mixes {hardware}, a safe ingredient, and software program known as a common built-in circuit card (UICC). eSIMs are usually accessible in varied kind components, together with machine-to-machine kind issue (MFF2), wafer-level chip scale packaging (WLCSP), and miniaturized leadless packages. Particularly, eSIMs use an embedded UICC (eUICC) with a safe ingredient for enhanced safety in IoT units.
An iSIM is a kind of eSIM the place an built-in UICC (iUICC) with a safe ingredient is manufactured right into a system-on-chip (SoC) or system-in-package (SiP), which then turns into built-in right into a mobile IoT module.
Key advantages of eSIM for IoT
The rise of eSIM know-how represents greater than only a mere technological development—it’s a paradigm shift. The know-how is in regards to the seamless integration and simplification of mobile connectivity in IoT units and enhancing consumer experiences. As mentioned beneath, eSIMs are central to reworking the dynamics of the mobile IoT market primarily based primarily on 3 key points of the know-how: 1) distant provisioning, 2) world connectivity and scalability, and three) enhanced safety.
1. Distant SIM provisioning in eSIM administration
Distant SIM provisioning (RSP), a characteristic standardized by the GSM Affiliation (GSMA), permits the distant administration of SIM profiles over the air, eliminating the necessity for bodily SIM card replacements. It gives a extra environment friendly means to handle units and has 2 main advantages:
Enhanced flexibility – With RSP, organizations can provision IoT units with totally different provider profiles remotely, enabling seamless community switching. That is significantly helpful for companies working throughout a number of international locations or areas—and even inside international locations the place areas lack protection from one provider however have protection from one other. For instance, a logistics firm can remotely provision its monitoring units to native carriers as shipments cross borders, guaranteeing constant connectivity with out guide intervention—i.e., swapping bodily SIM playing cards.
Diminished provisioning time – RSP considerably reduces the time required to deploy IoT devicces. Companies can remotely activate and handle SIM profiles to expedite their go-to-market methods (extra go-to-market time beneath). Massive-scale IoT deployments turn into extra manageable, as units will be arrange and up to date in bulk with out the logistical challenges of dealing with bodily SIM playing cards.
2. World connectivity and scalability: Accelerated go-to-market
eSIM know-how empowers IoT units with world connectivity, which is essential for companies aiming to function internationally. The know-how affords a number of distinct benefits:
Seamless world operations – Gadgets geared up with an eSIM can connect with native networks worldwide with out requiring guide reconfiguration, simplifying cross-border operations. That is particularly essential for asset monitoring and logistics use instances, the place units should stay linked throughout varied areas. eSIM know-how eliminates the necessity for conventional roaming agreements, guaranteeing constant efficiency and compliance with native rules.
Bodily SIM roaming vs. eSIM roaming – Roaming with bodily SIM playing cards usually includes dependency on native carriers’ roaming agreements, resulting in inconsistent efficiency, larger prices, and extra complexity in managing connectivity throughout a number of areas. In distinction, eSIM know-how, mixed with RSP and eSIM administration, permits seamless, cost-effective roaming by dynamically deciding on and switching between native carriers as wanted. This flexibility permits companies to streamline their operations, keep away from conventional roaming prices, and cut back the danger of service disruptions.
Scalability – The power to handle connectivity remotely is a game-changer for firms scaling their IoT deployments. With eSIM, companies can remotely provision new units immediately, including them to the community with no need bodily intervention. This reduces the time to marketplace for new services or products, enabling firms to increase shortly and effectively. By permitting for the immediate addition of units to a community, eSIMs supply vital operational agility, serving to companies keep aggressive and reply sooner to shifting market calls for.
Case examine: World logistics firm switches to eSIM for IoT-based asset monitoring
Scenario: A world logistics firm ran a large-scale IoT-based asset-tracking units throughout Europe, North America, Latin America, and the Asia-Pacific area utilizing bodily SIM playing cards.
Problem: Typically, a bodily SIM swap was essential to entry native MNO networks, which was labor-intensive.
Resolution: The logistics firm partnered with Infineon, a Germany-based semiconductor producer and Tata Communications, an India-based telecommunications firm to make use of eSIMs as an alternative of bodily SIMs (Utilizing OPTIGA Join eSIM and Tata Communication’s MOVE platform).
Outcomes: The answer changed the standard SIM card with a soldered eSIM, eradicating the necessity to change SIM playing cards. This answer eradicated the necessity to obtain credentials when crossing borders, enabled seamless connectivity, and offered entry to Tata Communication’s pre-negotiated charges with roughly 600 MNOs in over 200 international locations and territories. Additional, by changing the a number of SIM batches of the earlier answer with Infineon’s eSIM, the corporate solely needed to handle a single SKU.
3. Enhanced safety with embedded safe components in eSIM
Software program and community safety options have traditionally overshadowed {hardware} safety in IoT resulting from their visibility and less complicated implementation, whereas {hardware} safety is commonly extra complicated and dear. Nevertheless, a hardware-based root of belief (HRoT) permits producers and customers to make sure module authenticity, addressing cloning, counterfeiting, and key safety. As soon as key safety is assured, further elements, like safe boot or TrustZone, from UK-based semiconductor producer Arm, will be added. For IoT, eSIM know-how is rising as an HRoT, supported by initiatives like IoT SAFE.
eSIMs incorporate embedded safe components, providing superior safety features surpassing conventional SIM playing cards. These safe components act as an HRoT, enabling stronger safety via uneven encryption and guaranteeing safe, end-to-end communication.
HRoT for enhanced encryption – The embedded safe ingredient is the muse for safe operations by guaranteeing that cryptographic keys and delicate knowledge are securely saved and processed throughout the gadget. This makes eSIMs significantly well-suited for industries requiring excessive ranges of knowledge safety, comparable to monetary providers, healthcare, and significant infrastructure. The safe ingredient ensures that communication channels between IoT units and networks stay shielded from interception or tampering, lowering the danger of cyberattacks.
GSMA IoT SAFE specs – The GSMA’s IoT Safety Structure for Finish-to-Finish Safety (IoT SAFE) specs additional improve the safety offered by eSIM know-how. IoT SAFE makes use of eSIM as an HRoT, enabling safe gadget authentication and encryption providers for IoT purposes. By leveraging the safe ingredient throughout the eSIM/iSIM, companies can be sure that their IoT units meet stringent safety requirements and are shielded from rising cybersecurity threats.
“For manufacturers, establishing these roots of trust will be the first step in ensuring a new device is built to include trustable security. Kigen has been driving standardizing the RoT within a device’s SIM, eSIM or iSIM: an approach that ensures a common mechanism for secure data communications using a highly trusted and time-tested module. It offers a cost-effective mechanism for cloud authentication and end-to-end security, since SIMs are already used for authentication on mobile networks. This is especially important for IP and data trust in the era of AI for realizing the vision of a truly secure IoT, from chip to cloud.” – Loic Bonvarlet, SVP, Kigen
Overcoming hindrances to widespread eSIM for IoT adoption
eSIM adoption has stagnated in recent times. Even with these advantages of eSIM over different SIM-type applied sciences, widespread eSIM adoption has been slower than anticipated, which has led to a plateau within the share of shipments of mobile IoT modules with eSIM know-how in comparison with the cargo of such modules with different SIM-type know-how—holding round 30% since late 2019. In flip, this has additionally plateaued the cargo share of mobile IoT modules with hardware-based safety in comparison with modules with different or no devoted safety general.
Interoperability points and sophisticated RSP requirements are causes for gradual adoption. The delay in widespread adoption of eSIM for IoT (and normally) stems from challenges related to RSP and divergent requirements for client IoT units versus machine-to-machine (M2M) applied sciences in enterprises, which have led to interoperability challenges and gadget administration issues. For instance, SGP.02, the GSMA’s specification for RSP in M2M units, has limitations which have hindered eSIM know-how adoption within the general IoT market (client and enterprise). Its structure requires a number of useful entities, such because the Subscription Supervisor Knowledge Preparation (SM-DP) and Subscription Supervisor Safe Routing (SM-SR). These useful entities enhance deployment complexity and operational overhead, limiting scalability for large-scale IoT deployments and adaptability in operator switching resulting from static profile administration.
SGP.31 and SGP.32 purpose to simplify eSIM IoT architectures. To handle these challenges, the GSMA has launched two eSIM IoT specs—SGP.31 and SGP.32—designed to enhance M2M specification SGP.02 and client IoT specification SGP.22. The releases of SGP.31 and SGP.32 introduced forth 3 vital adjustments to handle the challenges which have to date hindered widespread adoption:
Introducing the eSIM IoT Distant Supervisor (eIM) – This element streamlines distant profile administration and provisioning processes, lowering complexity.
Remodeling the Native Profile Assistant (LPA) into the IoT Profile Assistant (IPA) – This variation eliminates the necessity for consumer interplay throughout provisioning, simplifying IoT connectivity and lowering time to marketplace for IoT deployments.
Changing SM-SR with Subscription Supervisor Discovery Server (SM-DS) and IPA within the structure – This eliminates the necessity for SM-SR in eSIM IoT deployments and reduces reliance on provider integration.
In all, SGP.31 and SGP.32 purpose to simplify the structure, improve scalability with environment friendly provisioning protocols appropriate for large-scale IoT deployments, and enhance flexibility in operator choice with on-demand profile switching.
Analyst opinion and market outlook
eSIM is a winner for IoT: Higher safety whereas enhancing value effectivity. At the moment, two-thirds of all mobile IoT module shipments lack help for HRoT—the muse of IoT safety. eSIM know-how facilitates uneven encryption for safe chip-to-cloud communication by injecting the safety key into the HRoT. Thus, implementing eSIMs into mobile IoT modules permits OEMs and finish customers to handle two main challenges: world connectivity and safety. Additional, since IoT safety has historically been considered as an added value, adopting eSIM know-how permits OEMs to distribute the return on funding extra effectively.
All mobile IoT use instances profit from eSIM. Whereas the roaming advantage of eSIMs favors asset monitoring kind of use instances, the improved safety features and straightforward distant provisioning (i.e., switching between totally different cell operators) profit all main IoT initiatives that make use of mobile connectivity. IoT Analytics, due to this fact, expects adoption throughout most, if not all, IoT use instances (sensible meters, vehicles, well being units, and so forth.).
Adoption anticipated to speed up by late 2025. Given the discharge of SGP.31 and SGP.32, there may be purpose to anticipate accelerating progress within the eSIM market. Nevertheless, the total commercialization of SGP.32 will solely start in 2025 as a result of want for widespread business adoption and infrastructure upgrades. Whereas SGP.31 is already facilitating progress, SGP.32 introduces extra superior options that require vital testing, integration, and compliance throughout varied stakeholders earlier than it may be totally deployed. This gradual roll-out ensures that the required ecosystem changes are made, minimizing potential disruptions and permitting for smoother transitions. With this, the IoT eSIM Modules and iSIM Chipsets Market Tracker initiatives accelerated progress within the shipments of mobile IoT modules with eSIM know-how by Q3 and This fall 2025. This acceleration in cargo progress helps evaluation within the Mobile IoT Modules & Chipsets Safety Tracker that shipments of mobile IoT modules with hardware-based safety will see accelerated progress in 2025 and onward as effectively.
Supply: IoT Analytics
