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It is well established that eSIM technology will play a central role in the future of the Internet of Things (IoT). But why? In practical terms, eSIM seamlessly integrates cellular connectivity into devices on a global scale, delivering strategic advantages such as enhanced security, scalability, remote provisioning, and multi-network flexibility.
This technology simplifies large-scale deployments and eliminates the need to physically replace SIM cards in industrial equipment, sensors, or vehicles. Additionally, it is fully compatible with advanced IoT applications, enabling innovative services that were previously logistically unfeasible.
For example, if a company needed to deploy 20,000smart meters using traditional SIM cards across multiple countries, it would face significant logistical complexity: sourcing physical SIMs from different operators, preconfiguring devices for specific regions, managing multiple contracts and billing schemes, and handling on-site replacements in the event of connectivity failures. eSIM removes these bottlenecks.
Devices equipped with eSIM can connect to local networks in different parts of the world without manual reconfiguration, which is particularly relevant for use cases such as logistics and multi-region asset tracking.
A rapidly expanding market
Traditionally, cellular IoT connections relied on physical SIM cards, often tied to specific providers and requiring replacement when operating in new regions. eSIM changes this paradigm by being unique and programmable. As part of the cellular IoT module hardware, it enables remote, over-the-air (OTA) provisioning of network profiles. It also incorporates built-in security features, making it a more secure and flexible option for connecting IoT devices to cellular networks.
Until recently, however, the complexity of remote provisioning and the coexistence of multiple standards slowed adoption more than expected. According to IoT Analytics, only 33% of all cellular IoT modules shipped in Q2 2024 included an eSIM. That said, the new IoT eSIM standard (SGP.32—the GSMA specification designed to provision and manage eSIMs in IoT devices without user interfaces and with limited connectivity) is helping manufacturers and end users overcome scalability and interoperability challenges in large-scale deployments, compared to earlier specifications such as SGP.02 and SGP.22.
According to IoT Analytics, by the end of 2023, there were 16.6 billion connected IoT devices worldwide. Of these, 3.56 billion(21%) relied on cellular connectivity, which has become critical for applications requiring mobility and reliable long-range coverage. By 2030, the number of IoT devices is projected to surpass 40 billion, growing at a 14% CAGR. This expansion is fueled by demand for data collection and automation across manufacturing, healthcare, transportation, and smart cities.
Use cases and vertical markets
eSIM integration is transforming multiple IoT industries and verticals, enabling innovative use cases and applications across areas such as:
For example, in the manufacturing sector, eSIM enables machines to connect directly to private 5G networks. Compared to traditional SIM cards, eSIM offers greater reliability in harsh industrial environments, where factors such as vibration or corrosion can compromise physical cards.
In this context of rapid growth and increasing complexity within the IoT ecosystem, Plusmo works to help organizations connect assets, machinery, and devices more efficiently and securely. Through our IoT service, companies can operate on a single platform to manage their eSIMs, simplifying connectivity management while supporting the scalability of their projects.
