New research from Omdia indicates that the installed base of eSIMs in IoT is expected to surpass 3.6 billion by 2030.
The adoption of eSIM technology is enhancing efficiency in the cellular IoT sector, offering enterprises increased flexibility and choice, as highlighted in recent findings by Omdia.
The push for mass adoption of eSIM technology, especially in LPWAN devices, is supported by the GSMA SGP.31/32 standards. This advancement simplifies the process of switching network profiles, enabling enterprises to benefit from more straightforward device management, broader network coverage, and better commercial terms.
While eSIM technology has gained widespread acceptance in consumer electronics, notably in high-end smartphones and smartwatches, limitations related to power, processing capabilities, and the requirement for user intervention have previously hampered its full utilisation in the IoT sector. However, Omdia notes that these challenges are being overcome as new solutions emerge. Developments in eSIM technology are expected to expand its adoption in IoT from just over 1 billion in 2023 to more than 3.6 billion by 2030.
The growth in the market is not only due to advancements in eSIM technology but also driven by other significant trends in IoT adoption, including 5G RedCap, 5G Massive IoT, and 4G LTE Cat-1bis modules, alongside demand from enterprises.
“eSIM technology has always been recognised as a critical component for IoT devices, but we are now witnessing technological improvements that enable enterprises to provision devices over-the-air in environments where resources are limited,” stated John Canali, Principal Analyst for IoT at Omdia. “This development is fostering greater competition among communication service providers (CSPs), reducing IoT enterprises’ dependence on specific CSPs and enhancing their position to renegotiate connectivity costs.”
“Furthermore, the introduction of the new GSMA SGP.32 eSIM specification, tailored for IoT, marks a significant step forward. It offers substantial benefits in terms of cost, flexibility, and durability for hardware manufacturers, beginning to narrow the divide between conventional consumer device provisioning and the more traditional IoT devices. This advancement is set to speed up adoption across vital sectors, not just in areas keen on eSIM standardisation like the automotive industry but also across a wide range of other fields,” added Andrew Brown, Practice Lead for IoT at Omdia.
Omdia’s forecast on eSIM is underpinned by primary data collected from a survey involving over 700 global IoT enterprises, with nearly 90% of respondents indicating plans to adopt eSIM/iSIM technology within the next two years. Beyond enhanced security, IoT enterprises value the benefits eSIMs offer in creating more robust and reliable networks, managing costs effectively, and adhering to local regulations with ease.
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