The Internet of Things (IoT) continues to expand rapidly, with eSIM technology playing a pivotal role in enabling secure, flexible, and scalable connectivity for billions of devices worldwide. As a global provider of IoT connectivity solutions, Giesecke+Devrient (G+D) highlights the many advantages of eSIM technology and presents the latest innovations in the field.
The number of IoT devices is growing exponentially, with applications increasingly spanning industries such as transportation and logistics, agriculture, energy management, and manufacturing. Initially developed for the automotive sector and machine-to-machine (M2M) use cases, the eSIM is now indispensable across nearly all IoT domains. It provides the robust and adaptable connectivity that IoT devices require throughout their entire lifecycle, from production on the factory floor to deployment in the field.
G+D outlines the key benefits of eSIM technology for the specific demands of IoT
1. SGP.32 Enhances Flexibility
The new eSIM standard SGP.32 introduces significant improvements compared to the widely used SGP.02 specification. While SGP.02 relies on SMS-based communication and therefore cannot fully meet the requirements of today’s interconnected IoT ecosystem, SGP.32 supports various IP-based communication protocols. This enables IoT devices to be managed more efficiently and flexibly throughout their lifecycle.
SGP.32 also simplifies profile switching, enabling device manufacturers to more easily comply with regional and regulatory requirements, such as local roaming rules. Although adoption of SGP.32 increases and SGP.02 remains widely used in sectors like automotive, it is essential that connectivity management platforms support both standards and allow enterprises to centrally manage existing and new device fleets.
2. IFPP Ensures Seamless Connectivity from the Factory
In-Factory Profile Provisioning (IFPP), together with Remote SIM Provisioning (RSP), simplifies device handling and improves the user experience. IFPP is an innovative solution that securely and automatically loads eSIM profiles onto IoT devices during the manufacturing process.
This means either a bootstrap profile can be installed- allowing the device to automatically receive its final subscription once activated- or the final subscription itself can be provisioned directly at the factory. No manual configuration or physical intervention is required after production. In addition, an RSP solution allows eSIM profiles to be remotely managed and updated over-the-air, making it possible, for example, to switch profiles to a different mobile network operator on-site.
3. eSIMs Enable Private 5G Networks
One of the strongest industry trends is the growing deployment of Private 5G networks. Here too, IFPP, SGP.32, and eSIM technology deliver major advantages.
First, eSIMs enable machines to connect directly to 5G networks, whereas traditional SIM cards are less reliable due to risks such as corrosion or vibration. For large machine fleets in particular, a centralized management platform, such as eSIM management, is indispensable.
Second, eSIMs ensure seamless device connectivity: IoT devices can be equipped with connectivity via a Private 5G network in the factory and then transition smoothly to public networks in the field. With SGP.32, profile changes can later be made- for example, switching to another operator if coverage in a given area proves insufficient.
4. Cellular Networks Deliver Efficient, Secure, and Cost-Effective Connectivity
Cellular-based connectivity and by extension eSIM technology offers advantages in terms of security and manageability compared to Wi-Fi or Bluetooth, which are often used in manufacturing environments. Cellular networks are built on global standards, whereas Wi-Fi and Bluetooth are subject to different regional regulations that increase administrative complexity.
Although Wi-Fi and Bluetooth are technically free, cellular connectivity can also be delivered cost-effectively. For instance, G+D has developed AirOn360 Intelligent Online, a solution that supports time-limited IoT connectivity. By activating connectivity only when required, companies can significantly reduce cellular data costs.
5. eSIMs Simplify Product Design and Inventory Management
Because eSIMs are embedded directly into devices and can be managed via RSP, they are particularly valuable for devices deployed remotely in the field. Unlike physical SIM cards, which require on-site replacement when changes are needed, eSIMs eliminate that logistical burden.
They also streamline inventory management, as standardized device models can be used across multiple regions, reducing the number of required Stock Keeping Units (SKUs). In addition, eSIM adoption allows companies to lower Bill of Materials (BOM) costs by removing the need for traditional SIM card slots and components.
“In the IoT sector, eSIM technology will be central to advancing modern connectivity and manufacturing processes. Key advantages include digitalization of workflows, greater efficiency, cost savings, and enhanced security. eSIMs also provide a high degree of flexibility and are network-agnostic, meaning that IoT devices can switch providers multiple times over their lifetime. Users can choose the best operator based on factors such as coverage, quality, required bandwidth, price, or device location. New profiles can then be securely and efficiently provisioned, for example, through G+D’s AirOn360 platform,” explains Soenke Schroeder, Director Global Go-to-Market Strategy & Innovations for Connectivity & IoT at G+D.
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