2.2 bn IoT connections expected to be on eSIM by 2030

The global Internet of Things (IoT) electronic eSIM market is expected to grow at a rapid pace of 43% annually to reach 2.2 billion by 2030, according to a recent report released by market research firm Counterpoint Technology Market Research. By 2030, almost a third of the IoT connections will be on eSIM, it said.

eSIM serves as a virtual SIM card that enables the activation of business mobile plan on the users’ device without the need for a physical SIM card. Essentially, eSIM allows for the remote provisioning of carrier profiles on IoT devices.Bharti Airtel, Jio, and Vi are the leading providers of eSIM support on smartphones in India, catering to both Android and iOS users.

Businesses can benefit from eSIM in various ways. Convenience and cost-effectiveness are key advantages. By utilising eSIM, multiple lines can be managed on a single device, eliminating the necessity for separate devices for work and personal use. This not only saves money but also offers the convenience of switching between lines on users’ phone.

Mohit Agrawal, Associate Director, noted that the growth of eSIM in IoT has been slower due to the restrictive mobile to mobile (M2M) eSIM specifications. Despite the demand, there were just under 200 million eSIM connections in the IoT sector by the end of 2023.

Ankit Malhotra, Senior Research Analyst, mentioned that the new GSMA standards for IoT eSIM (SGD.31/32) are anticipated to extend the reach of eSIM to constrained devices, potentially driving significant growth in eSIM and later iSIM.

The GSMA's SGP.32 stands as the latest technical specification for eSIM remote provisioning for IoT devices, facilitating the remote activation of eSIM profiles through an eIM (eSIM IoT Manager). Previous eSIM specifications led to network or user-interface limitations for IoT devices, relying on SMS for profile activation.

Malhotra added that eSIM vendors and IoT connectivity providers have been exploring various proof of concepts based on the new IoT eSIM standards, with a major push expected next year following the release of test specifications by GSMA later this year. Automotive customers have been the primary early adopters of eSIM in IoT, as enterprises have faced challenges in changing connectivity providers at will.

Another study released by Juniper Research on Tuesday also revealed that the global IoT eSIM connections are projected to reach close to 1.3 billion by 2028, a significant increase from 165 million in 2024. This growth is expected to be fuelled by the emergence of new eSIM specifications that offer enhanced flexibility for enterprises to remotely manage eSIM profile switching across IoT devices.

Juniper Research further highlights that the automotive, logistics, and oil & gas sectors are poised to reap the most benefits from the implementation of these new specifications. These industries, known for their need for compact form factors, are anticipated to represent more than half of all eSIM-enabled IoT devices by 2028. The seamless connectivity ensured by SGP.32 is identified as the primary catalyst for expansion within these sectors, it said.

Moreover, the forthcoming SGP.42 specification is set to deliver similar functionalities as SGP.32, specifically tailored for eSIM devices and is designed to further reduce the device form factor while maintaining the same level of functionality.