A recent study by Juniper Research found that the number of global IoT eSIM connections will grow from 165 million in 2024 to nearly 1.3 billion by 2028[1]. Emerging embedded SIM (eSIM) specifications are driving this growth, particularly the GSMA SGP.32 standard, which provides enterprises with greater flexibility by enabling remote profile switching on IoT devices. Earlier specifications were consumer-focused rather than designed specifically for IoT. In addition, the basic M2M variant SGP.02 constrains IoT devices without a user interface, since those devices must rely on SMS to activate profiles.
For IoT devices, relying on specifications originally envisioned for consumer smartphones presents serious limitations, preventing many resource-constrained IoT devices from fully benefiting from eSIM technology. With SGP.32, that changes: devices with limited processing and storage capabilities can finally take full advantage of connectivity designed specifically for IoT. These devices are typically optimized to deliver maximum performance at the lowest possible power consumption and cost per data session.
Such devices are often deployed in remote or hard-to-reach locations, making the indirect profile download feature of SGP.32 ideally suited for devices that may need to switch carriers during their lifecycle. Devices can rely on SGP.32 for flexible connectivity management and indirectly download new profiles when required. Typical use cases include utility meters, agricultural analytics and tracking, resource monitoring, and sensors and actuators. Other applications include logistics, road transport, and battery-powered devices.
Unconstrained optimization
These devices are inherently constrained, which means companies like Acceleronix can help designers optimize by incorporating eSIM technology into their designs. Designers know this technology is built to ensure smooth uploading of connectivity profiles when a device needs to change providers, and allows deployments without on-site configuration. Device designs will also minimize power consumption and ensure optimized data session communications, unlocking the true potential of eSIM.
Transforma Insights has described this segment of so-called “thin IoT” in terms of the five Ps — performance in constrained devices is a function of power, processing, price, and proportion. The concept was first coined in 2021 but remains relevant today, with the difference that SGP.32 is now available, enabling constrained IoT devices to connect to cellular networks via eSIM.
This is one reason why deployment of SGP.32-enabled eSIM cards is gaining traction in constrained IoT devices. A recent GSMA Intelligence survey[2] found that telecom operators widely expect demand for eSIM-enabled solutions to rise across most industries in 2024–2025, led by smart cities. Operators expect that by 2030, eSIM will account for 37% of all cellular IoT connections, followed by iSIM (34%) and traditional removable SIMs (29%).
In many ways, this shows that we are still in the early stages of the market: eSIM devices are proliferating, but true eSIM functionality is underutilized. Acceleronix believes that with the advent of SGP.32, this will change quickly as developers recognize the benefits of automated in-field provisioning. The specification has now been finalized by the GSMA, and vendors such as Acceleronix are moving forward to bring this rich IoT-specific capability directly into the resource-constrained device market.
We are ready to help you unlock the full potential of constrained IoT devices — to learn how, please visit www.acceleronix.io to contact us.
[1] https://www.juniperresearch.com/press/pressreleasesemerging-gsma-specifications-to-grow-global-iot-esim-isim-connections/
[2] https://www.gsma.com/solutions-and-impact/technologies/esim/wp-content/uploads/2024/07/GSMA-Welcome-and-eSIM-Market-China-and-Beyond.pdf
