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Why enterprises and IoT device manufacturers adopt eSIM ?
Charlie Harrisson The Internet of Things (IoT) transforms how enterprises operate by enabling real-time data collection and analysis from various connected devices. Organizations expect secure and reliable network connectivity to achieve optimal results from their IoT implementations.
As the manufacture of IoT devices grows, access to flexible and secure connectivity becomes increasingly critical for enterprises seeking to launch and scale their IoT fleets globally. According to Kaleido’s 2024 Enterprise IoT Survey, more enterprises are adopting eSIM technology for their IoT deployments than ever. This is driven by advancements in connectivity, a maturing ecosystem, and a deeper understanding of regulatory compliance and data governance.
The Kaleido Enterprise IoT survey gathered responses from 1,000 enterprises and focused on enablement technologies such as eSIM roaming, providing valuable data to inform cellular IoT strategies for enterprise OEMs.The survey highlights opportunities and challenges across five key sectors: utilities, transportation, smart cities, manufacturing and healthcare.
Enterprise cellular IoT adopters rise
Around 80% of the enterprise survey respondents reported having an active cellular IoT project, reflecting significant growth in IoT adoption over the past three years.
Source: Cellular IoT Enterprise Demands & Opportunities 2024 Survey Report
While this figure may not fully reflect the global scope of enterprise cellular IoT deployment, it underscores the growing momentum of IoT technology across five key verticals.
Benefits of eSIM for addressing Enterprise IoT Challenges
Enterprises are realizing the advantages of (eSIM) in providing data integrity, roaming flexibility and international connectivity. Authenticating IoT devices using eSIM as a root of trust ensures data is exchanged securely from the chip to the cloud, which is the top reason enterprises chose eSIM (eUICC) technology in Kaleiodo’s IoT survey.
Source: Cellular IoT Enterprise Demands & Opportunities 2024 Survey Report
Long-term cost reduction was a determining factor in enterprises choosing eSIM for their deployments despite the slightly higher entry barrier than the physical SIM. In the long run, businesses can adopt in-factory profile provisioning to reduce costs compared to using a physical global roaming SIM. Kigen’s efficient eSIM operating system is designed for energy-saving IoT applications. Our partnerships with major MNOs and MVNOs allow you to utilize our expertise in NB-IoT, LTE, and 5G Low-Power Wide Area (LPWA) networks.
Regulatory Requirements for Roaming
Adhering to local requirements for local cellular connectivity has become evident amongst enterprise customers, who are increasingly aware of the risks associated with managing large device estates in certain countries. Consider Turkey and other countries, including Brazil and China, where permanent roaming is banned, and IP data needs to be routed within the country.
To maintain data connectivity eSIM provisioning must be done by authorized local operators. Therefore, enterprises deploying IoT devices with eSIM in Turkey must collaborate with local mobile network operators (MNOs). Manufacturers need different SIM cards for devices shipping to Turkey, requiring multiple production lines.
In order to effectively meet the specific requirements for local cellular connectivity and to comply with regional regulations, Kigen, floLIVE, and Protahub have collaboratively developed an innovative solution designed for global customers in Turkey. This solution enables OEMs, enterprises and mobile network operators to obtain local IoT connectivity using a single global SKU through their existing eUICC-compatible SIMs. You can read the use case here.
Streamlined assembly process: In-factory device connectivity
Kigen operates within a diverse ecosystem, offering hardware and connectivity-agnostic solutions that allow for vendor flexibility. Our In-factory Profile Provisioning (IFPP) enables IoT manufacturers to implement provisioning directly on the manufacturing line. This approach helps to reduce roaming costs and minimizes the expenses associated with managing multiple provisioning setups.
IFPP also streamlines the production process on the assembly line, allowing OEMs to use a single Stock Keeping Unit (SKU) for their devices. As a result, each device is ready for connectivity right out of the box, enabling it to connect to the preferred local mobile network as needed. To learn more about Kigen’s IFPP solution, explore it here.
Maximizing the efficiency of IoT and consumer eSIM devices
Integrating enterprise infrastructure with MNOs to obtain visibility and control of profiles across multiple regions is complex. Switching profiles using the M2M SGP.02 eSIM standard is difficult; the heavy implementation specification takes time and can be costly. The limitations of the M2M eSIM standard have hindered connectivity service provider’s ability to fully support resource-battery-constrained devices.
The GSMA SGP.32 specification and the introduction of eIM (eSIM IoT remote Manager) mark a significant breakthrough for efficient eSIM management in the IoT ecosystem. These advancements streamline IoT operations, especially for resource-constrained devices, delivering substantial benefits to manufacturers, operators and enterprises.
Streamlining IoT device connectivity with eIM (eSIM IoT Manager)
Kigen’s eSIM IoT Remote Manager (eIM) offers a powerful solution for managing IoT and consumer eSIM fleets, seamlessly integrating with Kigen’s eSIM Consumer OS and operator SMDP+ (Subscription Manager Data Preparation Plus) services. Kigen’s services, including Remote SIM provisioning, can be managed through Kigen Pulse, a user-friendly console that consolidates all our solutions. Kigen’s eSIM OS, combined with our RSP solution, enables seamless, cost-effective roaming by dynamically selecting and switching between local carriers as needed. This eIM solution streamlines business operations and ensures secure device deployment in the field with over-the-air updates to access multiple mobile networks. For more details, visit Kigen eIM.
Benefits of remote eSIM IoT management:
• Expand reach by activating a new range of LPWAN IoT devices that are growing exponentially
• Streamline profile management across fleets of IoT devices through automation without needing extensive backend infrastructure modifications.
• Flexible and dynamic connectivity by addressing changing conditions such as location or signal strength
Secure data is a top enterprise driver for eSIM
End-to-end security is a main priority, with 60% of the enterprise survey respondents expecting their service providers to offer robust security features, with reporting capabilities ranking closely behind. These features are integral to ensuring transparency, enabling organizations to monitor the health and performance of their device fleets effectively.
eSIM provides a standardized security approach for managing critical infrastructure in sectors such as smart metering, logistics, manufacturing, and healthcare. It incorporates a hardware secure element known as the “Root of Trust,” which establishes chip-to-cloud security and ensures data reliability across multiple sites and device sensors in real-time.
The secure foundation of eSIM is an ideal platform for IoT SAFE (IoT SIM Applet For Secure End-to-end Encryption), facilitating zero-trust authentication to enhance the secure management of IoT networks.
Stay tuned for the next blog on eSIM for enterprise, which will focus on end-to-end security..
SGP.32 to ease eSIM provisioning of device fleets
Global standardization efforts, which will increase eSIM adoption across key IoT verticals, including smart metering, logistics, and healthcare, are expected to boost future growth.
The GSMA SGP. 32 specifications introduce new dedicated features to meet specific IoT requirements, simplifying massive-scale deployments and addressing the challenges associated with remotely provisioning and managing constrained IoT devices. A positive sign is the growing market trend in evaluating the availability of SMDP+ (Subscription Manager Data Preparation +) profiles to prepare for the transition to the new SGP.32 specifications for IoT RSP.
What benefits can we expect from the latest GSMA standard?
• SGP.32 will alleviate the design restrictions of SGP.02, intended for automotive OEMs rather than for mass adoption.
• IPAd, on the device will make it more widely adaptable as it can acquire profiles and integrate across different carriers
• Using operator profiles from different carriers will be easier with the GSMA SGP. 22 consumer architecture.
• SMDP+ is designed for travel eSIM and business and less as a classic eSIM offering, enabling fleet management via eIM
• Various flavors of profiles give customers the maximum degree of in-field control
eSIM is changing how travelers switch between operator profiles
The eSIM momentum is growing in the consumer market, creating opportunities for mobile ecosystem players while offering additional benefits to digital nomads and travelers alike. Major device manufacturers such as Apple, Google, and Samsung have embraced eSIM technology to enhance the functionality of smartphones, smartwatches, tablets, laptops and other consumer devices. Further growth is predicted as more regions launch eSIM-only smartphones across more regions.
Consumer eSIM profile downloads more than doubled in 2023, a 109% increase year over year.
Source: Trusted Connectivity Alliance
The increase in eSIM adoption, as highlighted by the TCA, indicates a growing consumer preference for eSIM technology. This technology digitalizes connectivity distribution and allows users to switch between networks according to their preferred subscription. Kigen’s energy-efficient consumer eSIM operating system (OS) provides a robust and flexible connectivity solution for smartphone manufacturers and travel partners. It supports the development of portable IoT devices for travel and enables manufacturers to enhance revenue through improved services and applications.
Kigen and GL.iNet are improving the travel experience through eSIM technology. This technology provides seamless global roaming and secure 5G connectivity through portable travel routers. Users can easily switch between network providers, resulting in high-speed internet for consumers and IoT hardware for a work-from-anywhere experience. You can read the case study here.
Conclusion
The recent SGP.32 specifications include features that meet specific IoT needs, making large-scale deployments easier and addressing issues with remote provisioning of constrained IoT devices. Kigen’s eSIM solutions enable OEMs, MNOs, and enterprises to remotely manage SIM profiles while ensuring secure data exchange for connected devices. These solutions offer significant flexibility, longevity, and sustainability benefits for hardware OEMs, bridging the gap between traditional consumer device provisioning and IoT devices.
