The IoT eSIM market is expected to grow by 2026 and will reach 195 million from 22 million in 2023. In addition, due to the mass deployments enabled by the eIM standard, the total number of global IoT (Internet of Things) connections using eSIM technology will accelerate. Furthermore, the growing adoption of the eIM (eSIM IoT Manager) variant among the eSIM platforms will drive growth over the next three years.
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eIM, as defined in SGP.31 by the GSMA, is a standardized eSIM provisioning tool that facilitates the deployment and management of eSIM-enabled IoT devices at a large scale. Its purpose is to standardize the process of mass deployment of eSIM-enabled IoT devices.
eIM to Accelerate IoT Deployments
According to a report by Juniper Research, current eSIM provisioning solutions like SMSR (Subscription Management Secure Routing) used by incumbents have hindered the expansion of eSIMs in the IoT market. These solutions restrict the number of devices that can be provisioned and managed via a single user interface. On the other hand, eIM solutions enable the deployment of multiple connections simultaneously, which will reduce deployment costs and increase the value proposition of eSIM use cases that require mass deployments.
The report forecasts that the IoT sector will account for just 2% of all eSIMs in use by 2023. Nevertheless, with the rising acceptance of eIM tools, the report anticipates that the growth of eSIM IoT connections will surpass the consumer sector, which includes smartphones, over the next three years. As a result, by 2026, it is expected that 6% of all global eSIMs will be attributable to the IoT sector.
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Logistics and Oil and Gas Extraction Sector to benefit from eIM
According to the report, the number of eSIM-enabled IoT devices in service is projected to increase by 780% globally over the next three years. In addition, the report identifies two sectors, namely logistics and oil & gas extraction, that will benefit significantly from eIM. By 2026, it predicts that these two markets will represent 75% of all eSIMs in use globally due to their dependence on LPWA (Low-power, Wide-area) business models that necessitate mass deployment processes.
