The new era of cellular IoT

A major shift is taking place in the Cellular IoT market: more and more eSIMs and iSIMs are entering the market. There are expected to be more than 500 million active eSIMs/iSIMs by the end of 2023. The quantity in 2022 was 424 million due to an 11% increase, in 2023 it is up to a whopping 18%.

What are eSIMs and iSIMs?

eSIM

eSIM stands for embedded sim. eSIM capabilities are available for all form factors: 2FF (Mini), 3FF (Micro), 4FF (Nano) and MFF2 (the soldered sim chip). The main difference from a standard simcard is the ability to provision the sim card remotely.

iSIM

iSIM is a sim integrated with the processor core and encoding of the eUICC in a cellular module or system on a chip (SoC). Integrated simcards are intended to address the shortcomings of the eSIM. Benefits include: less power consumption, less footprint and therefore lower costs. In addition, the iSIM also has better security.

The advantages further explained

The eSIMs/iSIMs make it possible to reduce the time to market for organizations and it increases the efficiency of IoT deployments . It facilitates integration of IoT devices, connectivity and user experience. This brings four advantages over traditional simcards.

1. Better flexibility for IoT solutions

The eSIM/iSIM technologies are more flexible and have more efficient configuration than physical simcards. This is because the devices are remotely provisioned with different carrier profiles. This allows seamless switching between networks, eliminating the need to replace physical simcards. This technology is especially beneficial for organizations implementing IoT devices in multiple countries/regions. It saves them time and simplifies the implementation process. This allows companies to adapt faster and optimize IoT deployments.

2. The eSIM/iSIM are more secure

An MFF2 embedded simcard (eSIM) is a vacuum sealed simcard that can be soldered directly to your device’s circuit board. This increases reliability and reduces the impact of shock, corrosion and other environmental factors. Also, the lifespan of an MFF2 embedded simcard is longer than that of a standard model. One of the biggest advantages of an MFF2 embedded simcard is its physical security; because the simcard is soldered directly to the circuit board of your device, it is impossible to remove it. However, the iSIM is already integrated into the processor core of the device in question. All in all, this technology provides the basis for asymmetric encryption resulting in secure end-to-end communication.

3. The eSIM/iSIM technology is more durable than the regular SIM card

The eSIM/iSIM technology eliminates the need for physical simcards. This reduces electronic and plastic waste. In addition, fewer physical simcards are shipped, reducing transportation emissions.

The future eSIM/iSIM in cellular IoT

Furthermore, eSIM/iSIM technology is expected to rise in the cellular IoT market. Currently, the vast majority of the market still consists of physical SIM cards, this share being 67%.

In the next two to three years, the research firm expects the eSIMS to comprise the largest share. After that, the iSIMS will conquer the market when it comes to the hardware module. It is also expected that the eSIM market will later migrate to the iSIM technology, with the iSIM then dominating the market.

The two main factors ensuring that eSIM/iSIM technology will grow in the cellular industry are: laws and regulations regarding cybersecurity and GSMA specifications.

More information

For more information on cellular IoT, contact can be made by calling 085-0443500 or emailing info@thingsdata.com.