In an era where the Internet of Things (IoT) is becoming increasingly prevalent, the technology that connects these advanced devices is evolving to keep pace. One such innovation that stands out is the eSIM or embedded SIM.
With eSIMs, device manufacturers no longer need to include a physical SIM card slot, which simplifies the design and can reduce manufacturing costs. This space-saving aspect is particularly beneficial for compact IoT devices, such as wearable health monitors or smart sensors, where every millimeter counts.

Global cellular IoT connections grew by 27% year-on-year in 2022, significantly outpacing the overall growth rate, and now represent nearly 20% of all global IoT connections. According to GSMA Intelligence, there will be 5.8 billion licensed cellular IoT connections by 2030 across all SIM form factors.

As deployments increase, so does the demand for eSIM technology, which simplifies global connectivity and enhances security for IoT devices. This growth is expected to continue, with 83% of organizations recognizing eSIM as crucial to the success of future IoT deployments.

Key among these industry initiatives is the publication of GSMA’s eSIM IoT Specification (SGP.32), which is designed to extend the existing Remote Sim Provisioning architecture used for consumer devices to support IoT devices. Therefore, it is not a completely separate or dedicated RSP; rather, it allows the same consumer RSP infrastructure to handle IoT devices.

Advantages of eSIM in IoT

  • Flexibility and Remote Provisioning: One of the most significant advantages of eSIM technology is its ability to be remotely provisioned. This means that network operators can update the network credentials on the eSIM without physical access to the device. For IoT devices deployed in hard-to-reach or hazardous locations, this is a game-changer. For instance, updating the network settings on a fleet of smart meters across a city can be done remotely, saving time and reducing operational costs.
  • Enhanced Security: eSIMs offer enhanced security features compared to traditional SIM cards. They support secure authentication processes, reducing the risk of tampering and fraud. Additionally, eSIM profiles can be dynamically updated with the latest security protocols, ensuring that IoT devices remain protected against emerging threats.
  • Global Connectivity: For IoT devices that need to operate internationally, eSIMs provide a seamless solution for global connectivity. Devices can switch between different carriers and networks without the need for a new physical SIM card. This capability is particularly useful for logistics and transportation industries, where assets move across borders and need reliable connectivity throughout their journey.

Consumer eSIM vs. M2M vs. IoT GSMA solutions: Understanding the Distinctions

As eSIM technology evolves, it's crucial to understand the differences between consumer eSIM and M2M SGP.02 and eSIM IoT specification SGP.32, especially for those implementing IoT solutions. While they share the core feature of remote provisioning, they serve different purposes and are tailored to specific applications.

GSMA Consumer solution:

  • Target Devices: Designed primarily for consumer gadgets such as mobile phones, tablets, and wearables.
  • Control and Privacy: Complies with strict privacy regulations, making remote activation and management more complex due to individual user protections.
  • Application: Best suited for personal devices where end-users handle activation, setup, and maintenance directly.
  • Pull Model: A provisioning method where the device independently retrieves the eSIM profile from the server, initiated by the device, offering greater flexibility and user control.
  • Based on GSMAs’ Consumer technical specifications SGP.21, SGP.22, and SGP.23

GSMA M2M Solution:

  • Target Devices: Customized for Industrial Internet of Things (IoT) applications, including sensors, machinery, and devices in demanding environments.
  • Control and Privacy: Meets organizational requirements, enabling seamless remote activation, setup, and management of eSIMs and associated IoT devices.
  • Push model: A provisioning method where the eSIM profile is sent directly from the server to the device, initiated by the server.
  • Based on GSMAs’ M2M technical specifications SGP.01, SGP.02, and SGP.11

GSMA IoT Solution:

The new IoT eSIM standard offers significant improvements over the existing M2M eSIM standard. One major improvement is that the new standard eliminates the SM-SR lock-in, which is a big challenge within the M2M SGP.02 standards.

  • With IoT eSIM, any device can connect to any SM-DP+ without requiring pre-configured integrations, thus eliminating the need for technical integrations between network operators.
  • Another benefit of the new standard is that, unlike the M2M eSIM standard, it does not require SMS to complete the profile download. This is especially important for network-constrained IoT devices, such as those using NB-IoT, which may lack SMS capabilities.
  • The new IoT eSIM standard utilizes both push and pull models for profile downloads, providing greater flexibility and control over the provisioning process.
  • Based on GSMAs’ IoT technical specifications SGP.31, SGP.32, and SGP33.

Understanding these distinctions is essential for businesses implementing IoT solutions. While consumer eSIMs prioritize user privacy and personal device control, M2M/IoT eSIMs are designed to meet the unique demands of complex industrial settings, offering enhanced remote control and robust management features. This differentiation ensures that the chosen eSIM solution aligns perfectly with its intended application, enhancing efficiency, scalability, and control over IoT deployments.

How does eSIM in IoT function in the real world?

eSIM-enabled IoT devices are pivotal for the future across various sectors.

  • They facilitate traffic management in smart cities, as well as environmental monitoring, and public safety, by allowing remote management and updates of smart traffic lights and parking meters, enhancing urban mobility and reducing congestion.
  • In healthcare, wearable devices with eSIM technology provide uninterrupted real-time monitoring and data transmission, critical for remote patient monitoring and timely emergency response.
  • Agriculture benefits from eSIM-equipped IoT devices that monitor soil moisture, weather conditions, and crop health, enabling farmers to receive real-time updates and make informed decisions to optimize yield and resource usage.
  • In logistics and asset tracking, eSIM technology ensures seamless tracking of goods and assets across regions, improving supply chain visibility and reducing the risk of loss or theft.

Overall, eSIM IoT technology is essential for the future, offering reliable, secure, and efficient connectivity across multiple industries.

Where is this technology heading?

The integration of eSIM technology in IoT devices is still in its early stages, but its potential is undeniable. As more industries recognize the benefits of eSIMs, we can expect to see a growing number of IoT devices adopting this technology. The future promises greater connectivity, improved efficiency, and enhanced security for IoT ecosystems, driven by the versatile capabilities of eSIMs.

eSIMs are enabling a new era of innovation and efficiency in IoT applications. And as Monty Mobile continues to explore and harness the potential of eSIMs, the future of connected devices looks brighter than ever!