Is eSIM and iSIM ready for real industrial scale? A practical CTO’s view

 

The challenge of scale with traditional SIMs

 

Traditional removable SIM cards have served well for decades, but scaling them to thousands or millions of IoT devices poses serious challenges. A physical SIM is typically locked to a single mobile operator, so changing network provider means manual SIM replacement – a costly, impractical process at scale. Imagine maintaining industrial sensors or meters across multiple countries; physically swapping SIMs in each device is unrealistic. Beyond logistics, physical SIMs require device access (trays or slots), adding points of failure (e.g. dust or water ingress) and security risk (SIMs can be removed, lost, or stolen).

 

In industrial IoT, these constraints hinder global deployments. Many connected devices (e.g. smart meters, trackers) stay in the field for years or move across borders. Relying on one operator’s SIM can lead to coverage gaps or permanent roaming issues when devices operate outside the SIM’s “home” country for too long. Some countries even restrict or ban permanent roaming, meaning a foreign SIM could be cut off after a period. Traditional SIMs offer no easy remedy – enter eSIM and iSIM.

 

eSIM: Remote provisioning unlocks flexibility at scale

 

An eSIM (embedded SIM) is essentially a SIM chip soldered into the device (about 5×6 mm in MFF2 form factor) that can be reprogrammed remotely. Unlike traditional SIMs, eSIM uses a rewritable embedded UICC (eUICC) that lets you load or switch operator profiles over-the-air. This Remote SIM Provisioning (RSP) technology is a game-changer for scale: it removes the need to physically insert or replace SIM cards, enabling ongoing management of large device fleets, even in remote or sealed devices.

 

From a design perspective, eSIM’s small footprint and soldered placement improve device durability. There’s no SIM slot or tray, which reduces cost and eliminates a vulnerability point (useful for industrial devices needing rugged, waterproof enclosures). Security is also enhanced: a soldered eSIM cannot be removed without destroying it, mitigating theft or tampering. In fact, eSIMs provide a robust hardware security element (the secure enclave in the eUICC) to store credentials, making unauthorised access far harder than with traditional removable SIMs.

 

Equally important, eSIM’s remote provisioning enables global connectivity and compliance. IoT devices can download a local operator profile when they move to a new region, avoiding permanent roaming restrictions by effectively becoming “local". For example, a smart utility meter deployed across Europe could switch to a local network profile in each country via eSIM updates, staying within regulations and maintaining service without a truck roll. This flexibility also lets you optimise connectivity costs and coverage – you can select or change carriers digitally to get the best signal or rates in each region.

 

Industrial adopters are already leveraging eSIM. Auto manufacturers like BMW and Tesla embed eSIMs in connected cars to remotely manage mobile profiles across countries, improving scalability and coverage for their telematics services (iot-analytics.com).

 

In the energy sector, eSIM-equipped smart meters can be produced with a single global SKU and later provisioned with appropriate local operator profiles, simplifying deployment and operations.

 

Is eSIM ready for industrial scale?

In many ways, yes. eSIM is a mature standard (defined by the GSMA) and is seeing rapid growth in IoT. By 2023, roughly half a billion IoT devices were eSIM/iSIM capable, about 16% of global IoT connections (iot-analytics.com). By mid-2024, one-third of new cellular IoT modules shipped were eSIM-capable (iot-analytics.com). These numbers are accelerating as eSIM becomes the new normal for IoT modules. Analysts note that eSIM represents a “paradigm shift” in IoT connectivity, simplifying global deployments and improving security (iot-analytics.comiot-analytics.com). It’s increasingly viewed as necessary for massive IoT – without eSIM, scaling to tens of billions of devices would be “costly and laborious,” as one industry report put it (telecomtv.comrcrwireless.com).

 

That said, eSIM adoption in IoT has been slower than initially expected, largely due to operational complexities. Setting up the backend systems for remote provisioning (SM-DP+, subscription management servers, etc.) and coordinating between different carrier eSIM platforms has proven challenging. Divergent standards for consumer vs M2M eSIM, and integration hurdles, meant only ~25% of IoT SIMs sold by some operators were eSIM by 2022 (telecomtv.com). The good news: the industry recognises this and is streamlining eSIM for IoT.

 

New GSMA eSIM specifications (SGP.31/32) were released to simplify IoT eSIM provisioning and improve interoperability. This should reduce platform complexity and cost, and analysts predict eSIM uptake will sharply accelerate by 2025 as these improvements take effect (iot-analytics.com).

 

In practical terms, if you partner with a capable IoT connectivity provider, much of the complexity can be abstracted away. For instance, full MVNO operators (like IXT) have built their own core networks and eSIM management platforms to handle provisioning for customers. They often provide intuitive connectivity management portals to activate or switch profiles on your devices remotely, without you needing to run GSMA servers yourself. From the CTO’s perspective, leveraging such a platform turns eSIM into a turnkey solution: you get the flexibility benefits while the provider handles the heavy lifting behind the scenes.

 

iSIM: The Next Evolution – Integrated SIM in Silicon

 

If eSIM is a chip soldered on a board, an iSIM (integrated SIM) goes one step further: it integrates the SIM functionality directly into the main chipset (SoC) of the device. In other words, the SIM is no longer a separate component at all – it’s part of the device’s silicon alongside the processor and modem. This integration yields major space and power advantages. An iSIM’s footprint is measured in mere square millimeters (or nanometers of silicon area) – effectively zero dedicated space is needed for the SIM. For comparison, even the tiny MFF2 eSIM (5×6 mm) looks large next to an iSIM embedded in silicon. By reclaiming that space and eliminating the SIM slot entirely, designers can make IoT devices smaller, lighter, and more rugged (no external SIM access means one less ingress point).

 

Power consumption is another big plus. With no separate SIM chip constantly powered, an iSIM can cut SIM-related power draw dramatically – one telecom provider estimates iSIM uses about 70% less power than a traditional SIM card (telecomtv.com). This matters for battery-operated industrial sensors that need to last years in the field. Energy efficiency is a key enabler for massive IoT (think thousands of tiny sensors); integrating the SIM helps devices meet strict low-power requirements.

 

Security in iSIM is equivalent to eSIM, if not slightly enhanced by integration. Both eSIM and iSIM rely on tamper-resistant secure elements and GSMA-standard encryption, making them far harder to breach than removable SIMs . In iSIM’s case, the secure element resides inside the SoC, reducing potential attack surfaces (no external pins or interfaces to abuse). This tight coupling can make it even harder to physically tamper with or extract credentials, since one would have to compromise the main chip itself. iSIM has been standardised and GSMA certified for security just like eSIM – in fact, the first GSMA-compliant iSIM was unveiled in 2023, demonstrating that iSIM meets the same high security bar as eSIM.

With all these benefits, iSIM sounds like the ultimate solution. So, is iSIM ready to deploy everywhere? Not quite yet – there are practical challenges holding back wider iSIM adoption today. It’s important to understand these real-world trade-offs:

 

• Ecosystem Maturity: iSIM is new. The ecosystem of chipsets, module vendors, and operators supporting iSIM is still in early stages. Only a few commercially available IoT chipsets currently have iSIM capability built-in. This limits your supplier options and may tie you to specific silicon vendors. In contrast, eSIM chips are widely available from multiple suppliers after several years on the market.

 

• Chip Integration Complexity: Integrating the SIM into an SoC adds design complexity and lengthens product development for device makers. Chip designers must incorporate the secure element and provisioning logic alongside other functions, which can increase development time and cost. If you’re building a custom device, using an iSIM-capable chipset might require more upfront integration work (and expertise in security) versus using a discrete eSIM module.

 

• Standardisation & interoperability: While the GSMA and 3GPP have iSIM standards, early implementations can vary. Different chip makers might have slightly different approaches to secure enclaves or firmware, which could lead to interoperability issues or even vendor lock-in if not carefully managed. The industry is working on common standards, but during this nascent phase, you’ll want to ensure any iSIM solution you pick is fully compliant and supported by your connectivity provider.

 

• Operator Support: Not all mobile network operators (or MVNOs) are ready for iSIM yet. Supporting iSIM uses the same remote provisioning architecture as eSIM, but operators need to update their platforms and processes. As of now, many operators have not fully rolled out iSIM support or tested it at scale. This means your choice of connectivity providers that can provision iSIM may be limited. Wider acceptance and unified processes among operators are needed for seamless iSIM remote provisioning. (The good news: since iSIM is logically the same as eSIM, operators’ eSIM platforms just need minor tweaks to handle iSIM profiles, so support is likely to grow quickly.)

 

• Lifecycle Management: With a soldered eSIM, if something goes wrong you could (in theory) replace the module on a board, but with iSIM, the SIM is truly irreplaceable. This raises the stakes for reliable remote lifecycle management. Updating profiles or fixing provisioning errors must work seamlessly, because there’s no physical fallback. For industrial deployments, this puts pressure on device OEMs and operators to implement bulletproof RSP processes and fail-safes (e.g. robust fallback profiles, redundant connectivity) so that devices aren’t “bricked” by a bad profile update.

 

• Longer Time to Market: Industry voices note that integrating iSIM can extend the IoT product development cycle, delaying deployment. Early adopters are prototyping iSIM devices now, but many enterprises are waiting until the tech matures a bit (the expectation was that around 2024-2025 we’d see initial rollouts, with broader use thereafter).

 

In summary, iSIM is extremely promising, especially for the next generation of ultra-small or power-constrained IoT devices. It’s likely to shine in specific niches first – for example, wearables, tiny sensors, or asset trackers where saving every millimeter and micro-amp is critical. (GSMA experts note that iSIM’s space advantage isn’t a big deal for most devices, but it opens up new use cases like smart labels, connected clothing, or even wildlife tags on insects – scenarios impossible with larger SIMs).

 

For mainstream industrial IoT devices today, iSIM is just around the corner but not yet widespread. Most industrial deployments at scale in 2025 will still rely on eSIM (or traditional SIMs), with iSIM being trialed or on the roadmap.

 

Both eSIM and iSIM will likely coexist. In fact, they are technologically the same at core, just different form factors. One GSMA analysis put it succinctly: “mass deployment of IoT is possible with both eSIM and iSIM, and each satisfies specific use cases” (rcrwireless.com). So it’s less about one replacing the other, and more about choosing the right tool for the job. An industry analyst recently noted: “eSIM will be used for customer profile management (smartphones and consumer devices), whereas the integrated iSIM model is ideal for large-scale enterprise and industrial IoT deployments” (telecomtv.com).

 

In other words, for industrial IoT scale, iSIM is the end-game – but eSIM is the crucial stepping stone that’s available and proven today.

 

Operational considerations: Deployment, roaming, security, and beyond

 

When evaluating SIM vs eSIM vs iSIM for an industrial deployment, technical specs only tell part of the story. Practical operational factors often determine success or failure:

 

• Deployment & logistics: Physical SIMs require handling – buying and stocking SIM cards, inserting them into devices (often manually), and possibly swapping them out during device lifetime. This is labor-intensive and prone to errors at scale. eSIM and iSIM eliminate those logistics after initial manufacturing. With eSIM, you can assemble devices with a generic bootstrap profile and later download the operational profile for wherever the device ends up. This greatly simplifies rollouts across multiple sites or countries, as you don’t need separate SKUs or on-site SIM changes . Many CTOs find that this “single stock unit” approach with eSIM reduces deployment time and complexity – you can activate connectivity on-demand, anywhere.

 

• Profile management & multi-network support: For global or multi-region use, consider how easily you can support multiple carriers. Traditional SIMs might require different SIMs for different regions (to avoid roaming). This means either limiting where devices can go, or physically recalling devices to change SIMs when moving to a new market. eSIM shines here by letting you remotely load multiple profiles or swap carriers OTA. There are two GSMA eSIM usage models: M2M (where a management server can push profiles automatically) and consumer (user-initiated via QR codes etc.), but either way the capability is there. iSIM uses the same concept. Additionally, some operators (like IXT and others) offer multi-IMSI SIMs – where a single SIM/eSIM can house multiple IMSI identities and switch between them based on location or rules. This approach can automatically localise connectivity without even needing to download a new profile over the air. For example, a multi-IMSI eSIM could use an IMSI from a German network while in Europe, then switch to a U.S. IMSI when the device is in America, all seamlessly. These techniques mitigate permanent roaming issues by ensuring the device is effectively using a “home” identity in each region. If global deployment is in your scope, ensure your connectivity strategy supports either remote provisioning of local profiles or multi-IMSI capabilities to stay compliant and optimize coverage.

 

• Regulatory compliance (permanent roaming): We touched on this above, but to reiterate – roaming regulations can catch you off guard. The EU currently has no permanent roaming ban and is friendly to roaming IoT devices. But countries like Brazil, Turkey, India, and others either prohibit permanent roaming or heavily discourage it. If your industrial IoT assets may reside long-term in these markets, a local carrier profile is often legally required. eSIM/iSIM are essentially the only feasible way to ensure compliance at scale, since they allow remote localisation of connectivity. Without eSIM, you’d have to physically provision a local SIM in each device, which is near-impossible once devices are deployed. By adopting eSIM, you gain the flexibility to navigate this regulatory maze via software, not hardware. It’s wise to confirm that your connectivity provider has a strategy for this (e.g. partnerships in those regions or a regulatory-compliant eSIM solution). A practical example: IXT, as a full MVNO, uses a “one SIM – global coverage” approach with access to 600+ networks in 190+ countries and multi-IMSI support to automatically remain local where needed, thereby avoiding permanent roaming problems for our clients. That kind of capability can de-risk a global deployment significantly.

 

• Security & data connectivity: Industrial IoT deployments often deal with sensitive operational data. All three SIM types (SIM, eSIM, iSIM) provide SIM-based network authentication, which is more secure than say Wi-Fi pre-shared keys. However, eSIM/iSIM offer some extra peace of mind: since they’re not removable, it’s harder for an attacker to steal credentials or substitute a different SIM. Both eSIM and iSIM can also act as a hardware root-of-trust, enabling secure storage for IoT app keys or certificates (some vendors leverage the eUICC secure element for device authentication beyond just network access). From a connectivity security standpoint, also consider the network services around the SIM. Telecom operators can provide private APNs or VPN backhaul that keep your device data off the public internet. For example, IXT’s SecureNet offers a private networking layer (with SASE capabilities) so that data from SIMs goes directly to cloud or enterprise endpoints without exposure to public networks. This kind of service can complement eSIM/iSIM by securing data in transit. When comparing SIM technologies, note that security standards are equally strong for eSIM and iSIM – both are backed by GSMA certifications and tamper-resistant hardware. The main security differentiator is actually vs. physical SIMs: since a physical SIM can be removed, an attacker could put it in a different device or use hardware trojans; that vector is largely closed with soldered or integrated SIMs.

 

• Lifecycle & device management: Industrial equipment may have a 10+ year lifespan. Over that time, network technologies can sunset (2G/3G shutdowns are already happening), carriers may change contracts, or you might need to reconfigure connectivity as business needs evolve. eSIM provides a safety net for long-lived devices – you can swap out profiles to move from a 2G network to an LTE-M network, or from one carrier to another offering a better deal, all without touching the device physically. This extensibility protects your IoT investment. With traditional SIMs, making such changes later is extremely hard (often devices just become stranded when networks shut down). iSIM will offer the same benefit. The key is to have a robust management platform in place to handle these updates. Look for features like batch provisioning, remote monitoring of SIM status, and error handling. Many IoT connectivity platforms now provide REST APIs and dashboards to manage eSIM profiles at scale – e.g., IXT’s platform gives real-time SIM status and data usage visibility, and allows administrators to trigger provisioning or troubleshoot devices easily. Ensure your team (or your provider) has processes for testing profile updates on a small subset before rolling out fleet-wide, to mitigate any disruption.

 

• Power consumption: For battery-powered industrial sensors (like remote monitors or trackers), every milliwatt counts. If your use case demands multi-year battery life, consider that an active SIM module does draw power, albeit modest. eSIM chips today are quite power-efficient, but iSIM’s integrated approach reduces power usage further by eliminating redundant circuitry. There can be up to 70% less power consumption compared to a traditional SIM card. This difference may not matter for mains-powered equipment or even a tracker that’s recharged regularly, but for ultra-low-power devices (think environmental sensors running on small batteries or energy harvesting), iSIM could meaningfully extend battery life. On the flip side, using an iSIM might constrain you to certain chipsets that are compatible, which could impact other aspects of power or performance. So weigh the overall device power design – it’s possible an eSIM-based module that’s highly optimised could be just as effective for your needs.

 

• Cost factors: The cost question is nuanced. Traditional SIM cards are very cheap per unit; eSIM solderable modules cost a bit more (and require SMT assembly). iSIM promises cost savings in the long run by eliminating the SIM component altogether, which for massive volumes can shave off some cost. It also saves on supply chain and assembly steps. However, today any cost advantage of iSIM might be offset by higher chipset prices or integration NRE (since it’s new tech). In industrial IoT, the cost difference per device might be relatively small – connectivity cost (data plans, etc.) often dominate anyway. One potential cost saver with eSIM/iSIM is avoiding expensive truck rolls for SIM replacements or having to maintain multiple carrier contracts; those operational savings can dwarf the hardware costs. Many companies find the simplified logistics and single SKU approach of eSIM leads to lower total cost of ownership, even if each eSIM module is a bit pricier than a plastic SIM. Still, run the numbers for your scenario. If you’re deploying, say, 100 smart machines in one country and don’t plan to switch carriers, physical SIMs might be perfectly cost-effective. But if you’re deploying 10,000+ units internationally, the scales tip toward eSIM very quickly due to operational savings.

 

 

SIM vs eSIM vs iSIM: Comparison table for industrial deployments

 

To summarise the differences and practical trade-offs, the table below compares physical SIM, eSIM, and iSIM in key areas relevant to industrial IoT:

 

Table: Comparison of physical SIM vs eSIM vs iSIM for industrial deployments.

 

Conclusion: A practical path forward

 

So, is eSIM/iSIM ready for real industrial scale? In our view, eSIM is ready and already enabling industrial IoT at scale, while iSIM is emerging as a promising successor for the next generation of devices.

 

For today’s deployments, eSIM offers a balanced solution. It significantly reduces operational friction (no more physical SIM swaps) and increases flexibility, which is exactly what scaled-out IoT projects need. Companies leveraging eSIM are seeing easier global rollouts, better uptime through remote manageability, and improved compliance with local regulations. The technology is robust and backed by industry standards and growing ecosystem support. The remaining challenges (like eSIM platform complexity) are being ironed out with new standards and services, making it increasingly straightforward for enterprises to adopt eSIM via capable connectivity partners.

 

iSIM, on the other hand, represents the future – especially for massive IoT and ultra-compact devices. It’s not a question of “if,” but “when.” Early adopters will start reaping the size and power benefits of iSIM in niche applications soon, and as more chipsets and carriers support it, we expect iSIM to become the default in the years ahead for large-scale deployments. However, as a CTO making decisions in 2025, you should approach iSIM with a practical mindset: evaluate it in pilot projects, keep in touch with your module vendors about iSIM roadmaps, and perhaps design new hardware with an eye to future iSIM upgrades. But don’t delay your current IoT rollout waiting for iSIM to mature. You can achieve industrial scale today with eSIM, and likely transition to iSIM in the future when it’s fully ready.

 

From a telecom operator perspective, the shift to eSIM (and eventually iSIM) is not just a tech upgrade but a necessity for managing IoT growth. As a full MVNO operator, IXT run our own core network and have invested in eSIM provisioning systems, multi-IMSI capabilities, and global data pools to support customers’ scale requirements. These enable seamless coverage across borders and simplify connectivity management for the end user.

 

The operational lessons learned are clear: automation and flexibility are key. Whether it’s automating profile swaps to comply with roaming rules, or providing self-service portals for enterprises to oversee their SIM fleets, the ecosystem is adapting to make scaled IoT connectivity as painless as possible. When choosing a connectivity partner, look for this kind of experience – one who offers not just the SIM technology, but the surrounding support (platform, security, global reach) to make your deployment successful.

 

In a down-to-earth sense, choose the SIM solution that fits your deployment’s reality. If you have a stable, local deployment with a known carrier, traditional SIM cards can do the job, but you might be leaving future flexibility on the table. If you need to deploy widely, manage thousands of devices remotely, or anticipate changing connectivity needs, eSIM is likely the smarter choice today. Keep iSIM in your strategic plans – its advantages in size and power will unlock new possibilities (and potentially lower device costs at scale) as it becomes readily available.

 

In summary: eSIM has proven itself ready for industrial scale – it’s already in the field driving the IoT revolution and iSIM is coming right on its heels to further fuel that growth.

 

By understanding the trade-offs and preparing your operations (with the right partners and platforms), you can confidently ride this wave of SIM technology evolution. It’s an exciting time to be scaling IoT, and the SIM choice you make will set the foundation for your network’s adaptability, security, and longevity in the connected world.