What Is an eSIM for IoT?

An eSIM (embedded SIM) is a reprogrammable chip soldered directly into a device. It stores connectivity profiles that can be downloaded, switched, or retired over-the-air. This eliminates the need for physical SIM swaps when changing operators or managing global deployments.

The technology is governed by ETSI TS 103 383, which defines security domains inside the eUICC (embedded Universal Integrated Circuit Card), and GSMA specifications including SGP.22 for consumer devices and SGP.32 for IoT applications.

Key characteristics of eSIM for IoT:

• One soldered chip supports multiple profiles. Download, switch, or retire SIM profiles over-the-air. No trays. No field service visits.
• Built for scale. Remote SIM Provisioning keeps global deployments fast, compliant, and cost-efficient.
• Enterprise-grade security. Profiles are encrypted end-to-end and can route through private APNs or IP-VPNs.
• Future-proofing. Today's eSIM specification underpins tomorrow's iSIM, ambient IoT, and satellite networks.

How does eSIM work compared to traditional SIM?

Traditional SIM cards require manual insertion and physical replacement to change carriers. eSIM removes this limitation through Remote SIM Provisioning (RSP).

The Remote SIM Provisioning Ecosystem

Three components work together to manage eSIM profiles:

SM-DP+ (Subscription Manager Data Preparation Plus) encrypts and delivers eSIM profiles to devices. A mobile network operator or connectivity provider operates this service.

SM-SR (Subscription Manager Secure Routing) oversees the profile lifecycle, handling activation, deactivation, and deletion as required.

LPA (Local Profile Assistant) is a software agent in the device that requests profile downloads, installs them, and activates the selected profile locally.

How provisioning works in practice

When a device powers on, it authenticates to a Connectivity Management Platform. The CMP instructs the SM-DP+ to download the appropriate profile. The device's LPA activates the new profile automatically. No manual intervention required.

This automated process makes it practical to deploy thousands or millions of devices across multiple regions.

eSIM vs traditional SIM vs iSIM: which technology fits your deployment?

Different SIM technologies serve different deployment needs. Here's how they compare.

Traditional plastic SIM

• Removable 4FF (nano) or 2FF (micro) form factor

• Holds a single network profile

• Requires physical access to change carriers

• Occupies 12 × 15 mm plus tray space

eSIM (eUICC)

• Soldered 6 × 5 mm chip with no external tray

• Stores five to ten profiles, managed over-the-air

• Credentials stored in a hardware secure element

• Eliminates a mechanical failure point

iSIM (Integrated SIM)

• Secure element embedded directly inside the cellular modem chip
• Shares all eSIM capabilities
• Reduces power draw and bill-of-materials cost
• Expected to dominate small, battery-powered IoT devices by 2027

According to GSMA Intelligence, operators expect eSIM to account for 37% of cellular IoT connections by 2030, with iSIM at 34% and traditional SIM at 29%.

Explore the differences between SIM, eSIM, and iSIM in depth.

What are the business benefits of eSIM for IoT?

Organizations deploying IoT at scale face challenges around logistics, cost management, and operational flexibility. eSIM addresses each directly.

Faster time-to-market

Provision devices with country-specific profiles at the factory or on first power-up. No waiting for local SIM cards to arrive. No customs delays.

Predictable costs

With a Global Data Pool, all devices share one data allowance. This reduces wasted capacity and eliminates unexpected overage fees.

Operational agility

When carriers change pricing or sunset networks, switch profiles across your entire fleet remotely. No truck rolls. No site visits.

Improved uptime

Multi-IMSI and multi-network fallback keep devices connected even when one network experiences issues. Critical for applications where downtime means lost revenue.

How do eSIM security standards protect IoT deployments?

Security is foundational to eSIM technology. Multiple layers protect devices and data throughout the deployment lifecycle.

Industry standards

ETSI TS 103 383 defines security domains inside the eUICC and the roles of provisioning components.

GSMA SGP.32 provides a lightweight specification using JSON-over-HTTP, designed for IoT devices with limited processing resources.

Security architecture

Cryptographic Protection: Elliptic-curve cryptography and 3DES protect profile keys during transfer.

Hardware Root-of-Trust: The eUICC prevents extraction of critical identifiers. Credentials never leave the secure element.

Profile Binding: Only authorized SM-DP+ servers can load or update profiles, preventing unauthorized access.

Enterprise Security Features

Private Networking: Device traffic stays off the public internet using private APNs and IP-VPNs.

Cloud Integration: Traffic routes directly to AWS, Azure, or GCP through secure connectors, supporting SASE architectures.

Regulatory Compliance: In regions with permanent-roaming restrictions (EU, Brazil, India), localized profiles maintain compliance.

GSMA Certification: Every eSIM vendor passes more than 260 security controls before launch.

Explore IXT SecureNet.

How is eSIM used in EV charging networks?

Electric vehicle charging infrastructure depends on reliable connectivity for payments, load balancing, and remote diagnostics. Network outages mean lost revenue and frustrated drivers.

Connectivity challenges in EV charging

Chargers are deployed across diverse locations: urban parking structures, rural highway corridors, commercial properties. Each location has different network coverage characteristics. A charger that works perfectly in one city may struggle with connectivity in another.

Payment processing requires PCI-DSS compliance. Charging session data needs secure transmission. Remote firmware updates keep chargers compatible with evolving vehicle protocols.

How eSIM solves these challenges

Multi-network resilience. When one carrier has poor coverage at a location, the charger automatically connects to an alternative network. No manual intervention required.

Private networking for payments. OCPP traffic routes through isolated APNs, supporting PCI-DSS compliance requirements.

Remote profile management. When expanding into new regions, download local carrier profiles to existing hardware. No physical SIM swaps at each charger.

Real-time visibility. Monitor connectivity status across your entire charging network from a single platform. Identify issues before they affect customers.

Explore IXT solutions for EV charging.

How is eSIM used in industrial automation?

Manufacturing and industrial operations require connectivity that works across multiple sites, often spanning different countries. Equipment assembled in one region frequently deploys to another.

Connectivity challenges in industrial settings

Factory floors present RF challenges: metal structures, electrical interference, dense equipment. Facilities in different countries need to comply with local regulations. Equipment lifecycles span 10-15 years, outlasting multiple network technology generations.

How eSIM solves these challenges

Global manufacturing flexibility. Build equipment with eSIM in one location. Ship globally. Activate local profiles on arrival. No customs delays for region-specific SIMs.

Network resilience. Multi-IMSI profiles ensure connectivity even when primary networks experience issues. Critical for production monitoring and predictive maintenance.

Long lifecycle support. When networks evolve from 4G to 5G, update profiles remotely. No physical access required to equipment in hard-to-reach locations.

Secure data transmission. Private APNs isolate industrial control traffic from public internet exposure.

Explore IXT solutions for industrial automation.

How is eSIM used in smart utilities?

Smart meters and grid infrastructure require reliable connectivity over deployment lifecycles that can span 15 years or more. Manual maintenance is expensive and often impractical.

Connectivity challenges in utilities

Meters deploy in locations with variable coverage: basements, rural properties, dense urban environments. Regulatory requirements vary by region. Network technologies evolve faster than meter replacement cycles.

How eSIM solves these challenges

Extended lifecycle management. When carriers sunset 3G or LTE-M, update profiles remotely across millions of meters. Avoid costly truck rolls.

Coverage optimization. Multi-network fallback ensures meters stay connected even in challenging RF environments.

Regulatory compliance. Download localized profiles to meet permanent-roaming restrictions in different markets.

Cost efficiency. Global data pooling eliminates per-device overage charges. Predictable monthly costs regardless of individual meter usage patterns.

Explore IXT solutions for utilities.

How is eSIM used in asset tracking and logistics?

Tracking devices follow shipments across borders, through varying network coverage, often in environments where battery life is critical.

Connectivity challenges in logistics

Assets move through dozens of countries with different carriers and regulations. Trackers need to operate for months on battery power. Roaming charges can make global tracking economically unfeasible.

How eSIM solves these challenges

Seamless cross-border connectivity. Profile steering keeps trackers connected across 190+ countries without manual intervention.

Cost control. Global data pooling eliminates roaming bill shock. Predictable costs regardless of route.

Power efficiency. Optimized network selection reduces unnecessary scanning that drains batteries.

Real-time visibility. Monitor location, temperature, and condition data throughout the supply chain.

Explore IXT solutions for tracking and logistics.

What is the future of eSIM technology?

Three technology developments will shape IoT connectivity over the next five years.

iSIM adoption accelerates

Integrated SIM embeds the secure element directly inside the cellular modem chip. This reduces power consumption by approximately 40% on LTE-M modules and enables smaller device designs.

Counterpoint Research projects nearly 70% of cellular devices shipped in 2030 will use eSIM or iSIM, with iSIM growing at approximately 160% CAGR.

Standards continue evolving

Satellite connectivity enters IoT

3GPP Release 17 introduced non-terrestrial networks (NTN) for IoT. SGP.42 will define profile types that enable devices to roam between terrestrial 5G and satellite links. This matters for remote deployments in agriculture, maritime, and infrastructure monitoring.

Market growth continues

Juniper Research projects global cellular IoT connections will grow 60% between 2025 and 2030, adding 2.4 billion net connections. GSMA Intelligence forecasts 38.7 billion cellular IoT connections by 2030.

Related questions

• What’s the difference between SIM, eSIM, and iSIM?

• What’s the most cost-efficient way to manage large SIM fleets?

• What are the security risks of permanent roaming in IoT?

• How do eSIM and iSIM simplify remote fleet management?

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