IoT CMP vendors add eSIM management capabilities to simplify logistics and localise connectivity
Berg Insight, the world’s leading IoT market research provider, released new findings about the market for IoT connectivity management platforms (CMPs), a standard component in the value proposition from mobile operators and IoT MVNOs around the world.
Recent developments in the domains of network virtualization, SIM technology and LPWA networking are currently driving a shift in the market towards a greater diversity of IoT connectivity management services.
As enterprises in various sectors inherently have different connectivity needs, IoT CMP vendors and IoT-managed service providers are introducing new services to address different segments of the market, ranging from mission-critical to massive IoT applications. Delivery of global IoT connectivity services comprises another key focus area, propelled by enterprises’ demand for managing their global IoT device deployments through one platform or communications service provider.
About 67 percent of the global installed base of 1.74 billion IoT SIMs were managed using commercial connectivity management platforms at the end of 2020. Huawei is the leading IoT CMP vendor in terms of volume with close ties to the domestic operators China Mobile and China Telecom and managed over 900 million IoT SIMs in Q2-2021.
Whale Cloud, formerly known as ZTEsoft and partly owned by Alibaba Group since 2018, is the runner up on the Chinese market. Cisco is the dominant IoT CMP vendor outside of China with about 180 million connections in mid-2021, followed by Vodafone and Ericsson. Vodafone stands out as the only mobile operator that licenses its platform to third-party service providers. IoT CMPs are also a key component in the offerings from technology providers and IoT MVNOs such as 1NCE, EMnify, floLIVE, IoTM Solutions and Mavoco.
“Several major IoT CMP vendors have in recent time added eSIM management capabilities to their platforms as a tool to simplify logistics and localise connectivity”, said Fredrik Stalbrand, Senior Analyst, Berg Insight. Uptake of eSIM technology in the IoT market has been slow compared to the consumer market but seems to have reached a tipping point during 2020. “Enterprises in the utilities and security verticals are now following in the steps of the major automotive OEMs and adopt eSIMs in a broader set of IoT applications”,
concluded Mr. Stalbrand. IoT connectivity management platforms
Here are the key reasons IoT CMP vendors are integrating eSIM management features:
1. Simplified Device Deployment and Provisioning
- With eSIM management, CMPs can streamline device provisioning across different regions, avoiding the need to ship physical SIM cards to various locations. This speeds up deployment, cuts shipping costs, and reduces logistical hurdles, particularly in remote or international locations.
2. Localized Connectivity
- By integrating eSIM management, CMPs enable IoT devices to switch seamlessly between multiple network operators, choosing the best available network in each location. This localization improves connectivity quality, reduces latency, and enables compliance with local regulations, particularly for industries with strict data handling and localization requirements.
3. Enhanced Security
- eSIM management can also enhance security. Remote SIM provisioning allows vendors to update, swap, or deactivate eSIM profiles in response to security events or policy changes. These dynamic management capabilities are crucial in industries like healthcare, transportation, and critical infrastructure, where security threats and regulatory standards are high.
4. Scalability and Flexibility
- CMPs with eSIM management can scale easily as organizations expand their IoT footprint. Device connections can be managed remotely, allowing enterprises to adapt their connectivity strategy as usage and needs evolve, supporting everything from small deployments to large-scale rollouts.
5. Reduced Total Cost of Ownership (TCO)
- By simplifying logistics and reducing reliance on multiple SIM providers, CMPs can help reduce the total cost of ownership for IoT deployments. This cost-efficiency benefits industries managing thousands of connected devices, especially in sectors like manufacturing, logistics, and agriculture.
Notable CMP Vendors Leading the Way
Several leading IoT CMP vendors, including Cisco Jasper, Ericsson, and Vodafone, are incorporating eSIM management into their platforms, offering integrated solutions to support global and regional IoT deployments. As eSIM adoption continues to grow, IoT CMPs that provide these capabilities will likely become the preferred choice for organizations seeking robust, scalable, and cost-effective IoT connectivity.
In summary, adding eSIM management capabilities to IoT CMPs is a significant step forward in simplifying logistics, localizing connectivity, and enhancing the flexibility of IoT solutions. With these advancements, CMPs are becoming a critical enabler of global IoT connectivity, driving the next wave of innovation and adoption across industries.