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Major shift predicted for IoT connection strategies
Arrival of SGP.32 eSIM standard, as well as regulations and evolving industry dynamics, seen as transforming the market for cellular-based IoT connectivity, including emergence of orchestrator role
Even though the internet of things (IoT) arena is definitely on the rise, businesses relying on globally connected IoT devices are facing a major shift in how these assets will need to be managed, driven by new technical standards and evolving market complexities, leading to the arrival of the concept of the eSIM orchestrator (eSO), according to a study from industry research firm Transforma Insights.
Its analysis, The rise of the eSIM orchestrator, produced in collaboration with global IoT connectivity specialist Eseye, fundamentally finds that emerging technologies like the SGP.32 standard for eSIMs, coupled with what the analyst says will be more selective network operator policies, will compel connectivity providers to adopt strategies and specialist roles to maintain control and efficiency.
Created by the GSMA, the industry body responsible for mobile communication standards, SGP.32 is a global, next-generation eSIM standard for remote SIM provisioning in IoT devices – especially those with no user interface. It is designed to enable the large-scale, hands-off management of eSIM profiles, making it easier to deploy and operate IoT without physical access.
While eSIM technology has been available for consumer devices, managing these digital SIM profiles in IoT devices comes with unique challenges. For example, many IoT devices lack a user interface, making manual SIM management impractical. SGP.32 has been designed to address such limitations and builds on existing eSIM technology, introducing a more efficient way to remotely manage IoT connectivity. It allows SIM profiles to be managed remotely through a centralised platform, enabling automated updates and provisioning – even for devices without user interfaces or located in hard-to-reach areas.
Transforma Insights reflects this view, stressing that the era of simple, unfettered global connectivity for company devices is evolving, presenting new complexities for businesses.
The report notes that the key challenges and developments driving this transformation include: the launch of SGP.32 for remote SIM provisioning; mobile network operators (MNOs) becoming increasingly cautious about granting network access, particularly for eSIMs, seeking stronger guarantees on device security, certification and network resource utilisation; and a complex and tightening web of international regulations concerning data sovereignty, cyber security and permanent roaming restrictions in many countries.
“Enterprises are navigating a period of significant change in how global device connectivity is delivered and managed,” said Matt Hatton, founding partner at Transforma Insights. “The new SGP.32 standard provides a powerful tool for remote SIM provisioning. In conjunction with a more demanding regulatory and MNO landscape, our analysis points towards a fundamental shift requiring businesses to be more strategic. This is where we see the emergence of roles like the eSIM orchestrator becoming critical.”
Read more about IoT and eSIM
- Telenor IoT unveils ‘future-proof’ eSIM solution: Internet of things division of leading Nordic telco becomes latest in glut of providers to launch solution in flourishing embedded subscriber identity module market with standardised SGP.32 product.
- BICS launches eSIM Hub to simplify global enterprise IoT deployments: Ahead of introduction of upcoming GSMA internet of things standard, Proximus Global-owned international communications enabler aims to simplify global management of devices with launch of eSIM Hub.
- eSIM to accelerate IoT automotive, smart city programmes: Research finds tech and market developments are accelerating eSIM adoption in IoT sectors such as automotive and smart cities, with the latter sector expected to witness highest demand for eSIM-enabled services.
- eSIM adoption drives growth and market disruption in cellular IoT: Study reveals that embedded subscriber identity modules have gained more popularity from users and device makers than mobile operators but that is changing thanks to a new specification for IoT eSIMs.
The report sees the eSIM orchestrator function as growing to specialise in managing the complexities of this new environment. According to the paper, key responsibilities and characteristics of such a role would include eSIM profile management; profile lifecycle management; network capability awareness; device awareness; billing simplification; customer support; trusted relationships with MNOs; compliance with eSIM management obligations; commercial plans and tariffs management; and “comprehensive” managed services.
The paper also suggests this shift will move the industry beyond basic connectivity resale towards more sophisticated managed service models. For businesses, this means that simply acquiring SIMs will no longer be sufficient: a more holistic approach to managing the lifecycle, compliance and diverse connectivity options of their devices will be necessary.
“The way businesses manage their connected devices globally is undoubtedly transforming,” added Eseye co-founder and chief technology officer Ian Marsden. “Proactive companies will be looking beyond the immediate technical changes, like SGP.32, to understand the broader operational and strategic implications. Having a clear strategy for device connectivity management, which considers the need for specialised eSIM orchestration and unified control, will be increasingly important to de-risk operations, ensure compliance and maintain a competitive edge.”
