eSIM’s Impact on IoT in Automotive and Smart Cities

eSIM technology is revolutionizing sectors and driving IoT growth, fueled by new industry standards, per GSMA Intelligence.

By Sunil Sonkar 2 Min Read
2 Min Read
eSIM's Impact on IoT in Automotive and Smart Cities

Embedded subscriber identity module (eSIM) technology is gradually gaining momentum. It is reshaping sectors and with the significant implications for enterprise internet of things (IoT) deployments. A recent study by GSMA Intelligence reveals the eSIM adoption is set to accelerate further and is to be fueled by new industry specifications as well as network technologies.

The study forecasts a rapid growth in licensed cellular IoT connections and is to reach to 5.8 billion globally by 2030 across all SIM form factors. This means that eSIM is expected to play a prominent role and it is to account 37% of cellular IoT connections by 2030 and followed by integrated SIM (iSIM) at 34%.

eSIM adoption is already playing an important role in the automotive sector and it is paving the path for new business opportunities such as contract renewals and dual-eSIM technology. However, it is further learned that smart cities are anticipated to drive significant demand for eSIM-enabled offerings like smart monitoring systems for electricity usage, waste management, air quality and traffic patterns.

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Smart city projects in a couple of countries including the US and China are gradually leveraging eSIM technology for traffic management, parking services and street lighting. Operators are highlighting security as well as scalability as key benefits of eSIM deployments. They are now mainly focusing to address concerns around integration with legacy technology, data privacy and implementation costs.

To scale eSIM adoption in enterprise IoT deployments, GSMA Intelligence emphasizes the importance of global standards and specifications. By addressing challenges related to integration and interoperability, eSIM technology holds the potential to unlock transformative opportunities in IoT across automotive and smart city sectors.

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