eSIM has a lot to offer but, to date, mainly the automotive sector has taken advantage of it for the IoT. There are reasons for that, notably standards-related, but now that SGP.32 has shifted the dial, eSIM take-up is set to soar. To help you look again at eSIM, I was delighted to be joined by ABI Research on a recent webinar that offers expert insights on eSIM – beyond the tech.
Overall shipments of eSIMs for non-consumer use saw only minor growth 2022-23—up from 130 million to 136 million.* The automotive industry will account for a hefty percentage of that as it uses eSIM to connect cars for real-time updates, advanced navigation and more. As eSIMs can be provisioned remotely over-the-air (OTA), car manufacturers can change network providers when they choose, embedding the same type of SIM into every vehicle regardless of where they’re going because they activate network profiles when the cars get there.
How eSIM comes of age with SGP.32
On the webinar, Phil Sealy, ABI Research, says automotive still accounts for a staggering 50% of all non-consumer eSIM shipments.* Outside of that, eSIM has been a late developer. The COVID-19 pandemic, supply chain issues and a chipset shortage all contributed to that, but a significant reason has also been the lack of a dedicated eSIM IoT specification.
Until May 2023, SGP.22, the consumer specification, and SGP.02, the machine to machine (M2M) specification—which Phil says was designed with automotive in mind—were eSIM’s technical specifications. But now, SGP.32 combines the best of both and is purpose-built for the IoT. Phil summarises the main ways this will help as:
Enabling remote network profile provisioning where bandwidth is limited due to lightweight communication protocols- Reducing design time by locating the IoT Profile Assistant (IPA) on the eSIM or device
- Accelerating deployments and scalability through SMTP+ as an established infrastructure
- Ubiquitous form factor support.
All of which is expected to stimulate the eSIM market through new and existing applications, culminating in an estimated 195 million SGP.32 profile downloads in 2029—70% of all IoT.*
Why eSIM? A single SIM for global deployments
eSIM simplifies global deployments through a single SIM for all locations, remote SIM provisioning and the right connectivity solution according to each regional circumstance.
Every IoT deployment has its list of considerations: you need to decide on such things as technology, certification and regulatory compliance. That’s a lot, but complexity ramps up considerably when you take IoT devices and applications internationally, or globally. Then, the same list of considerations is multiplied by the number of regions you will be in.
Added to that, you must navigate restrictions on permanent roaming. This is when mobile network operators (MNOs) are permitted, or required, to terminate 90+ day (for example) connections to their network.
To avoid falling foul of this, companies can use eSIMs and programme them OTA through Remote SIM Provisioning (RSP). This requires agreements with and access to local eSIM profiles, which Wireless Logic has in all key markets with regulated or constrained roaming policies.
However, eSIM benefits don’t end there, and they aren’t confined to global deployments either. eSIMs help with:
- Total cost of ownership because network provider profiles can be switched to pick up local networks at local rates and to take up attractive new pricing packages that come onto the market
- Manufacturing logistics because you use the same SIM type no matter where products are going, so you can have a single stock keeping unit (SKU)
- Simpler supplier management because you can work with a single IoT connectivity platform provider instead of multiple MNOs around the world
- Speed to market– you can leverage extensive, flexible roaming profiles and/or update SIM profiles OTA to pivot quickly into new markets
- Regulatory compliance because working with a connectivity provider that’s maintaining relationships with MNOs means you can focus on your core business and not the mechanics of connectivity.
How to get started with eSIM
When you’re choosing a partner to get you started with eSIM, Phil suggests you consider the following:
Quality over quantity
Instead of looking at the quantity of connections the platform provider has, look at its experience in different markets. Each IoT fleet might not have millions of connections—they can be fragmented by nature—but you want to avoid “connect and forget” because the value of eSIM lies in OTA and RSP – you want to build on that.
Data growth
As the IoT grows, data volumes grow too. You will want to know your provider is equipped to analyse increasing data volumes and navigate data storage requirements.
Partnership
You will need a platform provider that can give you what you need now and in the future. Ask yourself if they are tried and tested in the market, if they have the right partnerships in place and expertise in delivering local and global deployments. Check they have a clear understanding of regulations and a toolset for navigating them. You should also look at their investment roadmap or strategy, including for SGP.32, to be sure they can grow with you over time.
Solution modularity
Can the provider offer tailor-made eSIM solutions to support specific applications? You will want to see evidence of a portfolio that supports different functionalities based on industry verticals’ requirements.
Where to get further help
It is an exciting time for the IoT. As eSIM comes of age it will start delivering the promised benefits that, until now, have been largely confined to select industries. Wireless Logic can help you plan your IoT solution with eSIM, get in touch with our IoT solution experts to understand your options.
You can also tap into the complete ‘eSIM simplified’ webinar to hear my full conversation with Phil and Jamie. For further information, download our single SIM for global IoT deployments guide and browse our range of eSIM resources.
*Source: ABI Research
