The two acronyms eUICC and eSIM are sometimes used interchangeably. Strictly speaking, however, eUICC refers to the software (and network infrastructure) and eSIM describes the hardware.
eSIM is however widely assumed to mean eUICC.
A SIM (Subscriber Identity Module) is a contact chip containing a device’s authentication credentials, enabling that device to access a cellular network. As with eUICC, the ‘e’ in eSIM stands for ‘embedded’. Instead of the familiar removable card format, an eSIM is a vacuum-sealed chip that is soldered directly to a board within the device. This form factor is known as MFF2 (machine-to-machine form factor).
eUICC refers to a particular type of software standard deployed on a SIM card. Under the traditional UICC standard, a card can usually contain just a single mobile network operator (MNO) profile. This means that if you want to switch operators, you have to physically replace the SIM. With eUICC however, the card can host multiple profiles. You can also add, remove or manage these profiles over the air via a method called remote SIM provisioning (RSP). Network infrastructure and systems are also required to manage eUICCs.
It’s also worth noting that even though it has the word ‘embedded’ in the name, the use of eUICC isn’t confined to soldered MFF2 eSIMs. You can, in fact, get eUICC versions of all the popular SIM form factors (mini, micro and nano). So even if your existing IoT devices cannot accommodate eSIMs, this should not necessarily stop you from tapping into the benefits of eUICC.