As the name implies, an embedded SIM (eSIM) is one that is integrated into the main board of a mobile phone or IoT device, as opposed to a physical SIM that must be inserted manually into a smartphone. The secure hardware and software that comes with an integrated SIM store subscriber information as well as other requirements for connecting to the mobile network of the telecom operator.

According to Kigen, a provider of eSIM and iSIM solutions, eSIM is a GSMA technology that permits remote SIM provisioning (RSP) of any cellular device. It enables a quick and safe way to obtain a user profile wirelessly from a telecom.

eSIM cards are reportedly utilized in a wide range of products, including smartphones, wearables, smart meters, healthcare IoT devices, home automation, IoT asset monitoring devices, and portable point of sale (POS) systems, among others, according to French multinational Thales. According to Juniper Research, there will be 195 million IoT connections using eSIM technology by 2027, up from just 22 million in 2023. It has been independently predicted that by 2027, the size of the eSIM market will increase from $4.7 billion to $16.3 billion.

The following are the main use cases for eSIM:

Automotive: Automakers can save expenses while raising consumer satisfaction. Instead of outsourcing it to a telecom, auto manufacturers can handle eSIM in their vehicles using a managed services approach. In addition to allowing owners to track their rented cars, the inclusion of an eSIM in a vehicle can enable telematics, real-time position tracking, and other location-based services. It can also help aggregator businesses manage their fleets more efficiently. Companies will be able to distribute over-the-air (OTA) upgrades because of the development of linked vehicles and increased use of software features.

Wearables: The adoption of eSIM in wearables is also being driven by the wearables’ increasing emphasis on smart quotient. According to KORE, for instance, sensors and connections can be used in a variety of applications such as smart scales, thermometers, and pulse oximeters. As a result, the readings gathered from these apps can be transferred to cloud-based platforms for expert medical evaluation. This is very helpful for providing remote patient care and healthcare. According to Kigen, equipment including augmented reality (AR) glasses, EKG monitors, fall detectors, and glucose monitors can be made more secure and consume less power.

Agriculture: KORE claims that the use of eSIM for IoT has increased the productivity of harvesters worldwide in precision farming. Central network management, which may help track equipment, livestock, and humans using smaller, more reasonably priced devices, can help handle the complexity of large-scale farming spanning numerous nations. GPS, sensors, and control systems are used in smart farming itself. Additionally, data can be delivered in real-time, enabling farmers to plan schedules and take preventative steps.

Shipping and logistics: Shipped goods can be provisioned on any telecom network and shipped anywhere in the world thanks to eSIM technology. The necessity to manually replace the SIM card is removed with eSIM, as was previously noted. Using remote SIM provisioning, telcos can alter network profiles as necessary.

Low-power M2M modules need fewer battery changes during operation, which reduces tracking costs as well. Ingenious cities: An integrated SIM can assist smart monitoring systems in smart cities that measure metrics like electricity use, consumption of water, waste collection, traffic patterns, etc., which can promote the creation of insights for making the lives of regular people more convenient.

Home security: Homeowners can use eSIM technology to guarantee that their home security equipment remains wirelessly linked in the event that external wires like power or fiber are severed. The hub can also be re-provisioned for on another network if the owner moves from his current residence. Furthermore, Kigen notes, the service provider is free from worries about tampering.