M2MEnterprise IoT


How will eSIM Impact the Future of IoT and what are the Implications for Stakeholders?

Report Summary:

Report Summary:

eSIM (Embedded Subscriber Identity Module) has been heralded as the next evolution of the SIM card, because it offers the ability to change service provider profiles over-the-air (OTA), without needing to change the embedded SIM card itself. It represents the most radical and potentially disruptive change in over two decades of GSM connectivity, in terms of how customers can select and change service provider profiles based on specific criteria or business rules.

This report looks in-depth at the evolution of the eSIM for the IoT, standardisation, efforts, adoption, opportunities and challenges and provides detailed recommendations for stakeholders in the eSIM value chain.

Questions Answered by this Report and for Further Consideration:

  • How has the eSIM Market Developed? Why was it needed in IoT?
  • What Benefits do eSIMs offer over standard SIMs or eUICCs, that don’t support RSP (Remote SIM Provisioning?)
  • What are the differences between eSIMs and iSIMs?
  • What elements comprise an eSIM solution and why are they important?
  • How are standardisation efforts around eSIM progressing?
  • What are the Challenges and Opportunities in the eSIM market?
  • What are the OEM use cases driving eSIM adoption?
  • What vertical industries are looking to eSIMs for IoT deployments?
  • How are eSIM developments progressing with MNOs, MVNOs and MVNEs?
  • How significant a challenge does roaming present in the IoT and how can eSIM solutions help?
  • What are Strategy Analytics’ recommendations for different stakeholders in the eSIM ecosystem? What does eSIM mean for MNOs, MVNOs, MVNEs, hardware vendors and OEMS?

Companies mentioned in this report:

Arm, ASpider, AT&T, Aeris, Arkessa, Altair, Cubic Telecom, Globetouch, GSMA, EMnify, ETSI, KORE, Transatel, Truphone, Wireless Logic, Tata Communications (Teleena), AIS, America Movil, Deutsche Telecom, Etisalat, Indosat, Integron, KPN, MTN, NTT Docomo, Orange, Qualcomm, Rogers, Swisscom, Sony, Taiwan Mobile, Telefonica, Telenor, TIM, Vodafone, Teal Communications, Sprint, Ericsson, Sierra Wireless, Tele2, Infineon, Giesecke & Devrient, Cisco Jasper, Gemalto (Thales), IDEMIA (Oberthur and Morpho), Telit, Valid, Gigsky, Simless, Simgo,


Table of Contents

1. Questions Answered by this Report and for Further Consideration 4
1.1 Companies mentioned in this report 4
2. Executive Summary 5
3. What is an eSIM? 6
3.1 Growth in Consumer eSIM-based Devices 8
4. eSIMs and the IoT 9
4.1 Traditional SIM Limitations in IoT 10
4.2 eSIM Adoption Challenges 11
4.3 eSIM Benefits for IoT 11
4.4 Future eSIM Growth Dependent on Standardisation 12
4.5 The Emergence of iSIMs 12
4.5.1 eSIM v iSIM 14
5. eSIM Solution Components 16
5.1 GSMA M2M eSIM Architecture 16
5.2 The Importance of SM-DP and SM-SR in eSIMs 17
5.3 eSIM Profiles and Bootstrapping 17
5.4 eSIM OS 18
5.5 Remote SIM provisioning (RSP) 18
6. OEM’s Driving eSIM Development in IoT 19
6.1 Core OEM eSIM Use Cases 19
7. Key eSIM Vertical Use Cases 21
7.1 Automotive 21
7.2 Logistics and Transportation 21
7.3 Asset Tracking and Site Monitoring 21
7.4 Industrial 22
7.5 POS/Payment Terminals 22
7.6 Healthcare 22
7.7 Utilities 22
7.8 B2B Wearables 22
7.9 Other Vertical Industries 22
8. Mobile Network Operators and eSIM 23
8.1 MNO and MVNO (Mobile Virtual Network Operator)/MVNE (Mobile Virtual Network Enabler) eSIM offerings 24
8.2 Roaming and Permanent Roaming Challenges & Opportunities 28
8.3 How does eSIM Help Business End Users with Roaming? 31
9. Conclusions 32
10. Recommendations 34
10.1 Mobile Operators 34
10.2 MVNOs and MVNEs 35
10.3 Hardware Vendors 35
10.4 OEM (Original Equipment Manufacturers) 36
11. How Can We Help You? 37

Figure 1: Subscriber Identity Module Form Factor Evolution for 1FF to eSIM and iSIM 6
Figure 2: Traditional SIM v eSIM 7
Figure 3: Consumer eSIM Device Examples 8
Figure 4: Advantages of eSIM in IoT 9
Figure 5: iSIM Form Factor 13
Figure 6: Arm iSIM SoC (System on Chip) 14
Figure 7: eSIM M2M Architecture 16
Figure 8: eSIM Deployments Globally 24
Table 1: Country and Regulatory Body Position on IoT Roaming 29

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