eSIM will open up new opportunities for enterprise IoT. It will enable organizations to benefit from remote, over-the-air provisioning – thereby mitigating the need for changing out a SIM card when switching carriers or moving to different connectivity technologies. It will allow device-specific form factors that solution developers can tailor to the IoT device or enterprise or CSP requirements. Using a single SIM during the manufacturing process can offer greater increased simplicity in deployments that are multi-country.
eSIM will be an important element for enterprise connectivity. Enterprise IoT research undertaken by TecFutures points to a high degree of interest across all main IoT sectors, and there is a higher-than-average level of interest in the Automotive sector. Outside Automotive, three key verticals include Storage, Logistics and Supply Chain and the Manufacturing and Industrial Sectors. eSIM offers the advantage of enabling global connectivity, as well as interoperability across CSPs and connectivity technologies. We therefore expect considerable growth in eSIM deployments in enterprises.
In October 2022, TecFutures interviewed 75 IoT CSPs across the globe with a mix of global, regional and single country players. Around 50% of respondents were MNOs and 50% MVNOs and all offer IoT enterprise solutions. TecFutures asked IoT CSPs about the importance of eSIM as part of its survey examining IoT drivers, challenges and opportunities.
We asked respondents to rate elements of the IoT CSP connectivity service mix of which eSIM was one part. On a scale of 1 to 5 (1- not at all important to 5 - very high importance), eSIM was the second highest rated attribute after CSPs providing efficient device onboarding, integration and in-life management. Overall, the rating given to ‘Provision of integrated SIMs (eSIM / iSIM) for efficiency and cost gains’ was 4.5/5 and 95% of respondents placed it in the top two of connectivity service elements.
Looking a bit deeper, a relatively consistent picture emerges when we look at the same question depending on whether the CSP is an MNO or MVNO, the size of the IoT base it manages, whether it is a single country, regional or global player and where the CSP operates geographically.
It is interesting to observe that across all categories there is a consistently high rating for eSIM, but appears more important to those organizations managing IoT connected bases between 500k and 1m, and similarly to Regional CSPs.
eSIM will be a critical tool in the IoT CSP armoury moving forward and key to unlocking the benefits and opportunities for further growth of the IoT enterprise market. With eSIM looming large in enterprise requirements, CSPs should move forward with plans to include eSIM as a core part of their IoT service offerings in order to maintain a competitive portfolio of IoT services.
For more information on the TecFutures IoT CSP Survey where we explore many other topics and issues, please contact firstname.lastname@example.org. Visit www.tecfutures.com to see more about TecFutures and how we help CSPs position themselves for competitive advantage.