
An embedded SIM (eSIM) is a small, non-removable chip built directly into a device’s circuit board. Unlike traditional plastic SIM cards, the eSIM integrates a secure element, hardware, and software in the form of a Universal Integrated Circuit Card (UICC). This enables the remote provisioning of mobile network profiles, allowing connectivity without the need to swap SIM cards physically.

Designed according to GSMA standards, eSIMs are widely adopted in both consumer electronics (like smartphones, wearables, and tablets) and IoT (Internet of Things) or M2M (machine-to-machine) applications. They are available in various form factors, tailored for a wide range of IoT use cases from industrial sensors to smart meters and connected vehicles.
With an embedded eUICC and integrated security features, the eSIM ensures secure network authentication, scalability, and long-term device connectivity, making it a critical component for connected IoT devices.
An embedded SIM chip contains the eSIM profile, the device’s unique identity and mobile network operator (MNO)subscription contract for a particular mobile network provider. Moreover, it’s a safe method for downloading user profiles wirelessly without switching the actual SIM card while using a cellular connection.
A new carrier profile means registering for a new account through the network operator, which is simpler with eSIM for IoT devices than traditional SIMs. Once a downloadable profile is needed, the network operator places it on the download server, the Subscription Manager-Data Preparation + (SM-DP+), which stores and delivers digital eSIM profiles.
Leveraging eSIM technology offers multiple benefits for original equipment manufacturers of connected devices. For example, integrating chips into IoT sensors during manufacturing enables OEMs to create compact and energy-efficient hardware while minimizing the risk of physical tampering with the device.
Original Equipment Manufacturers (OEMs) can greatly benefit from adopting a single stock-keeping unit (SKU) strategy, which streamlines production, lowers inventory costs, and reduces distribution expenses. This method simplifies processes across the manufacturing supply chain, leading to increased operational efficiency and cost savings.
By integrating In-Factory Profile Provisioning (IFPP) into the production line, OEMs can securely load eSIM profiles during device manufacturing, eliminating the need for post-manufacturing provisioning. IFPP guarantees secure, scalable, and efficient eSIM profile deployment, enabling faster time-to-market and worldwide SKU integration. By supporting a single SKU strategy, manufacturers simplify logistics and enhance global connectivity for IoT devices.
eSIM-enabled IoT devices can be remotely activated using a process called Remote SIM Provisioning (RSP), which enables seamless connectivity to mobile networks without the need for a physical SIM card. This allows large-scale IoT deployments such as smart meters, asset trackers, and connected vehicles to be activated over-the-air (OTA), reducing manual intervention
Yet another advantage of eSIM for the internet of things is that fleets of smart metering or asset tracking devices can be remotely updated with the latest software and firmware over the air (OTA) throughout the device’s entire lifecycle, enhancing operational efficiency.
Counterpoint Research shows the industry has a broad ecosystem of partners with more than 275 mobile and virtual network operators supporting eSIM worldwide.
-In 2023, the IoT module eSIM/iSIM market will surpass the 500-million-units, as cited by IoT analytics
–70% of all cellular devices shipped in 2030 will sport an eSIM, according to Counterpoint Research
The adoption of eSIM technology is accelerating due to the growing number of mobile phone operators who support the technology. Enterprises also see the benefits of the Internet of Things (IoT) combined with 5G networks, aka 5G IoT, to improve operational efficiencies with eSIM technology. Additionally, the eIM (eSIM IoT Remote Manager) standardized provisioning tool, as outlined in the GSMA SGP.32 specification, will facilitate further growth by standardizing the deployment and management of large-scale IoT sensors, devices and applications in the coming years.

Cellular network-based IoT connectivity offers comprehensive security and high interoperability, allowing organizations to scale quickly. Enterprises can choose from connectivity technologies such as NB-IoT, LTE-M, 3G, LTE, and 5G that best suit their data requirements. It should also be noted that enterprises can choose a combination of technologies for seamless device connectivity to suit their industry-specific applications. Cellular networks offer robust security, using advanced encryption to protect sensitive business data from unauthorized access and cyber threats.
Simply put, “roaming” means letting an IoT device connect to a different network provider’s coverage area when it’s outside its usual network. Roaming allows the device to connect wirelessly and access data using another mobile network. Combining localization with advanced eSIM network switching is a solution to resolve roaming problems for global IoT enterprise deployments where items are on the move.
A new carrier profile means registering for a new account through the network operator, which is easier with eSIM-enabled devices than traditional SIMs. Once a downloadable profile is needed, the network operator places it on the download server known as the Subscription Manager Data Preparation Address or SM-DP+, which stores and delivers digital eSIM profiles.
Mobile network providers stand to gain new opportunities from the growing number of industry-specific IoT projects using IoT connectivity solutions. Thanks to the GSMA SGP.32 certification, operators can facilitate the secure onboarding of cellular IoT devices into their networks using Kigen’s new eIM solution, even without prior knowledge. This allows them to maintain a high level of confidence in the security and integrity of their network.
eSIM provides the hardware soldered to the board inside a device and the solution for connecting and updating network profiles and firmware remotely over the air. Authorized users can access and update profiles and other data on the eSIM via an over-the-air, remote SIM provisioning solution (RSP).
The RSP updates services, collects data and provides additional services through cellular connection after the devices are dispatched. Also worth noting is that eSIMs are compatible with all leading carriers, enabling interoperability and remote eSIM profile provisioning on any device. It benefits large IoT deployments spread over regions where local device management is expensive.
Machine-to-Machine (M2M) technology transforms how businesses operate by enabling devices to communicate and share data without human intervention. Below are some of the leading M2M use cases across various industries:
Smart meters are revolutionizing the utilities sector. Energy providers use M2M-enabled smart meters to track energy consumption in real time, enabling accurate billing and helping consumers reduce their usage. Utility companies can promote energy savings and improve grid management by identifying peak usage times and inefficiencies.
Read the case study.
M2M technology plays a crucial role in logistics tracking, giving logistics and transportation companies the ability to monitor vehicle location, speed, and performance in real time. This results in improved route planning, reduced fuel costs, enhanced driver safety, and greater overall operational efficiency.
Read the case study.
In the healthcare industry, M2M technology enables remote patient monitoring through connected devices such as pacemakers, wearables, and in-home sensors. These devices send real-time data to healthcare professionals, allowing for proactive care, faster diagnoses, and reduced hospital readmissions. M2M also supports hospital operations by enabling remote monitoring of medical equipment and controlling access points for better security and efficiency.
Manufacturers leverage M2M communication to monitor production lines, detect malfunctions early, and ensure continuous operation. Real-time insights into inventory levels and equipment performance help optimize the supply chain, reduce downtime, and improve quality control. This technology enhances productivity while minimizing costs and waste.
In summary, eSIM technology delivers a reliable and scalable solution for Internet of Things (IoT) device connectivity. It accelerates deployments of IoT applications in utilities, logistics, smart transportation, and more.
By using Kigen technology to virtualize SIMs on-chip, companies can improve efficiencies and performance in the production, auto-provisioning, and management of their IoT devices. Contact Kigen eSIM experts to learn more.