The Demand for eSIM: Global IoT Providers Face Pressure
Global providers of the Internet of Things (IoT) are under pressure to deliver more than just connectivity, as business expectations continue to evolve.
A new report from Wireless Logic reveals significant pain points and highlights the resulting demand for connectivity providers to deliver flexible value-added solutions. Exploring connectivity challenges, priorities and expectations of enterprises deploying IoT globally, the report suggests that eSIM, security and remote SIM provisioning are necessary in order to meet the needs of today’s businesses scaling up their IoT investments.
The study results indicate that global IoT projects are becoming increasingly more complex, revealing common issues around permanent roaming restrictions and the intricacies of managing multi-provider relationships.
Partnerships required to scale IoT
Global IoT deployments need a supportive and more holistic service, according to the Wireless Logic survey. The report finds that almost six in 10 (59.3%) of cellular IoT adopters say more than half of their device fleet requires international or multi-regional connectivity.
- 41% cite restrictions on permanent roaming as one of their top five challenges when scaling IoT
- 42% say the same about maintaining commercial relationships with multiple connectivity providers
Likewise, one-third (32.9%) of all respondents find current global connectivity support is inadequate for their needs. As a result, enterprises are increasingly seeking support services and feature-rich solutions to tackle the complexities of IoT.
“Enterprises scaling IoT globally can’t afford to rely on connectivity alone – they need partners that can help them navigate the complexities of today’s fragmented connectivity landscape,” comments Iain Davidson, Senior Product Manager at Wireless Logic.
“Our research clearly shows that enterprises are looking for a holistic approach that adds value at every stage of their global deployments.”
Wireless Logic suggests that quality coverage is only the starting point, which respondents cited as the top technical reason for choosing a connectivity provider. In fact, flexibility (53%), a portfolio of value-added services (52%) and customer support levels (48%) are also crucial considerations for businesses.
We’re seeing a notable shift in expectations here. Enterprises are no longer just connecting devices – they’re embedding IoT at the very heart of their operations. This demands value-added solutions that cover everything from initial setup and optimisation to ongoing management.
Services like business intelligence, professional support and robust security have become essential. It’s a clear call for connectivity providers to raise their game with more sophisticated and tailored offerings.
‘Raising the game’ with eSIM adoption
eSIM, or embedded SIM, is a digital SIM card that allows users to activate a cellular plan without using a physical SIM card. Embedded into a device like a smartphone or laptop, the technology will play a critical role in bolstering seamless connectivity to high-speed networks - particularly as 5G continues to expand worldwide.
It allows businesses the opportunity to be more flexible when enabling in-life network switching, allowing a single SIM type to be used in all devices regardless of their destination.
- 5G connections are expected to reach 3.6 billion by 2025, accounting for 40% of all mobile connections (GSMA Intelligence forecast)
Permanent roaming restrictions are influencing eSIM adoption, according to Wireless Logic, with 32% of current cellular IoT adopters reporting over-the-air capabilities to optimise network choice. This includes eSIM or multi-IMSI, which is particularly important within the energy and utilities sectors, with 42% considering it an important factor.
In addition, permanent roaming restrictions and operator lock-in were reasons for choosing eSIM, following security (50%) and long-term cost reduction (47%).
However, despite these benefits, many enterprises remain cautious about eSIM, often seeking a wraparound service that extends beyond technical connectivity. Those that decided against eSIM cite uncertainty around its benefits (30%) as a primary reason.
- Limited support for both GSMA M2M and consumer eSIM profiles by some mobile network operators (37%)
- Issues with quality and performance, including weak service level agreements and interoperability challenges (32%)
- Cost and time constraints involved in switching network profiles (32%)
- Required integration with mobile network operators for visibility and control of the device fleet (32%)
“With eSIM now fundamental to long-term business success, enterprises looking to unlock its full potential need a partner that evolves with their needs,” Iain Davidson adds. “Our research indicates that resilient, flexible connectivity has moved from a ‘nice-to-have’ to a strategic necessity for tackling technical challenges, simplifying operations and staying competitive.
“At Wireless Logic, we’ve invested in a remote SIM provisioning platform so our customers don’t have to. Moreover, our dual support for both consumer and M2M standards – and our SGP.32 readiness – enables businesses to concentrate on innovation over infrastructure.”
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