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eSIM tech primed for ‘mass’ adoption

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 15 Feb 2024
According to Omdia research, eSIMs installed in IOT devices will top 3.6 billion in 2030.
According to Omdia research, eSIMs installed in IOT devices will top 3.6 billion in 2030.

Advances in eSIM technology will drive adoption in internet of things (IOT) devices and products from just over a billion in 2023 to over 3.6 billion in 2030.

This is according to the latest research by Omdia, based on data collected during a survey of over 700 global IOT enterprises, in which nearly 90% of respondents planned to adopt eSIM technology over the next two years.

Omdia’s research shows the tech is primed for mass adoption, particularly on low-power wide-area networks (LPWAN) devices. LPWANs are a type of radio-based connectivity used for wireless data communication for IOT devices and machine-to-machine applications.

While constraints on power, computing and end-user intervention have stymied the ability of IOT enterprises to take full advantage of this technology, Omdia says these hurdles are beginning to be reduced as solutions come to market.

According to the research group, the market is being driven not only by improvements in eSIM technology, but also by other key trends driving IOT adoption, such as 5G RedCap, 5G Massive IOT and 4G LTE Cat-1bis modules, as well as enterprise demand.

“eSIM technology has long been seen as an important form factor for IOT devices, but now we are seeing the technology improve in ways that help enterprises provision over-the-air in resource-constrained IOT devices,” says John Canali, IOT principal analyst at Omdia.

“This will create greater competition between communication service providers (CSPs), as IOT enterprises are less subjected to vendor lock-in by the CSPs and are better positioned to renegotiate connectivity tariffs.”

Andrew Brown, practice lead for IOT at Omdia, adds: “The new GSMA SGP.32 eSIM specification was much needed and has been specifically designed for IOT.

“It offers significant advantages in terms of cost, flexibility and longevity for hardware OEMs, finally beginning to bridge the gap between traditional consumer device provisioning and more traditional IOT devices.

“This will help to accelerate adoption in key industries, not only those that have long desired eSIM standardisation, such as automotive, but in a multitude of others also.”