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eSIM IoT Connections to Exceed eSIM Smartphone Growth by 2026 Globally

According to a recent study by Juniper Research, a leading IoT market analysis firm, the global number of IoT connections using eSIM technology is expected to increase from 22 million in 2023 to 195 million by 2026. eSIM IoT Connections

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An eSIM IoT connection refers to an Internet of Things (IoT) device that uses an embedded SIM (eSIM) rather than a physical SIM card to connect to a cellular network. An eSIM is a digital SIM that can be remotely activated and managed, allowing for easier and more flexible management of IoT devices on a large scale. eSIM technology is becoming increasingly popular in the IoT market due to its ability to simplify the deployment and management of IoT devices, reduce costs, and enable new use cases that require reliable and secure cellular connectivity.

The study highlights the growing adoption of eIM (eSIM IoT Manager) as a driving factor for this growth.

eIM is a standardized eSIM provisioning tool that enables the large-scale deployment and management of eSIM-enabled IoT devices. It is defined in SGP.31 by the GSMA and provides a uniform process for the mass deployment of eSIM-enabled IoT devices.

eIM to Accelerate IoT Deployments eSIM IoT Connections

The report notes that the growth of eSIMs in the IoT market has been hindered by incumbent eSIM provisioning solutions such as SMSR (Subscription Management Secure Routing), which limit the number of devices that can be provisioned and managed via a single user interface. However, eIM solutions can reduce deployment costs by enabling multiple connections to be deployed at the same time, making eSIM use cases requiring mass deployments more attractive.

While only 2% of all eSIMs in use will be attributable to the IoT sector in 2023, the report predicts that the adoption of eIM tools will drive the growth of eSIM IoT connections over the next three years, outpacing the consumer sector, which includes smartphones. By 2026, 6% of global eSIMs are expected to be attributable to the IoT sector.

Logistics and Oil & Gas Extraction to Drive Growth

The report identifies logistics and oil & gas extraction as two key sectors that will benefit from eIM, owing to their reliance on LPWA (Low-power, Wide-area) business models that require mass deployment processes. The report anticipates that eSIM-enabled IoT devices in service will grow 780% globally over the next three years, with logistics and oil & gas extraction expected to account for 75% of eSIMs in use globally by 2026.

 

 

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