A report by Kaleido Intelligence projects a surge in the adoption of embedded SIM (eSIM) technology for IoT applications.
The study predicts that over 1.4 billion eSIMs will be shipped by 2028, reflecting a compound annual growth rate of 21 percent between 2023 and 2028. Over 1.4 billion eSIMs (including eUICC and iUICC form factors) are forecast to be shipped in 2028
As MNOs adapt to the changing landscape, Kaleido’s report anticipates a notable shift in their strategies.
Kaleido Intelligence’s data forecasts a robust average growth of 77 percent in smartphone eSIM activations between 2023 and 2028. However, the most profound transformation is anticipated in the IoT realm.
The commercialisation of the IoT specification for eSIMs is expected to drive increased demand in the coming years. The report’s analysts predict that over half of all active IoT eSIMs will adopt the new specification by 2028.
Overcoming historical challenges, the eSIM technology is set to play a transformative role in Low Power Wide Area Network (LPWAN) connectivity, which includes technologies like Narrowband IoT (NB-IoT) and LTE-M.
Addressing prior limitations, the IoT specification introduces CoAP (Constrained Application Protocol) support for transport and a “lightweight” eSIM profile, significantly reducing power consumption for eSIM LPWAN campaigns.
Steffen Sorrell, Chief of Research at Kaleido, said:
“The eSIM market has seen several developments recently that smooth the path to adoption, and address many lingering ecosystem challenges.
The effect of this will mean eSIM or iSIM form factors will gradually become a de facto requirement by 2028 for most cellular devices.”
The Kaleido Intelligence report illuminates a future where IoT devices will rely on eSIMs to usher in a new era of seamless, connected experiences across industries and help to fuel innovation and productivity.
(Photo by Andy Hermawan on Unsplash)
See also: Enterprises accelerate IoT deployments to drive digital transformation
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