5G and eSIM drive enterprise IoT growth

New research shows that businesses around the world are generally optimistic about the prospects of the Internet of Things and are using the latest technologies to develop them.

What is eSIM

eSIM stands for "Embedded Subscriber Identity Module", which is a digital SIM card technology used in mobile devices such as smartphones, tablets and IoT devices. Unlike traditional physical SIM cards, eSIM does not require the physical card to be inserted or replaced, but digitally embeds the SIM card information into a chip inside the device.

The working principle of eSIM is that mobile operators can program the information of the SIM card (such as IMSI, MSISDN, etc.) into the eSIM chip of the device during the manufacturing process of the device. Users can remotely download or switch to different mobile network service plans by establishing a connection with the operator without replacing the physical SIM card.

The benefits of eSIM include:

• Convenience: Users do not need to carry or replace physical SIM cards, making it easier to switch between different operators.
• Space savings: Device manufacturers can save space as there is no longer a need to reserve a slot for a physical SIM card.
• Support multiple networks: Users can easily switch between mobile network services in different countries or regions internationally.
• Remote Activation: Users can activate new mobile network services remotely without having to go to a physical store.
• More connectivity options: eSIM technology also helps support Internet of Things (IoT) devices, giving them more flexibility in how they connect to mobile networks.

It should be noted that although eSIM is already supported and widely used in many places, its availability may vary in different countries and regions. When purchasing a device that supports eSIM technology, users should confirm whether it is compatible with local mobile operators.

5G and eSIM drive enterprise IoT growth

In a global survey, hundreds of enterprise professionals across eight vertical industries were surveyed to understand their attitudes and strategies towards the Internet of Things (IoT). Overall, respondents were surprisingly optimistic about the business prospects of IoT, with 95% expecting to see measurable benefits within two years of deployment. In addition, 90% of respondents said that existing IoT projects have met or exceeded their expectations.

The overall pattern of steady growth across the survey report shows that, for example, the percentage of companies spending more than $5 million on IoT has doubled over the past two years. Perhaps the most relevant data point for the telecommunications industry relates to the technologies being used. More than 70% of companies plan to use 5G connectivity for IoT, while eSIM/iSIM technology has been or will be adopted by nearly 90% of companies within the next two years.

While some tech giants have scaled back their IoT efforts, enterprises are embracing IoT and seeing significant results. In fact, enterprises are very much looking forward to adopting new technologies such as 5G, fixed wireless access (FWA), and eSIM/iSIM technology.

The survey shows that there are a lot of opportunities from hardware, software, connectivity to services. However, security remains a top concern for enterprises, and suppliers must not only be able to provide secure products and services, but also be able to effectively integrate into broader solutions. Suppliers who fail to provide secure solutions will find themselves excluded from this growing market.

These findings come at an interesting time for IoT. The buzzword has been around for at least a decade, but it feels like its progress has been slow. However, the 5G era is defined by a major expansion of B2B communications service offerings, so perhaps the IoT’s time has finally arrived. Future in-depth research into IoT revenue trends in the enterprise and telecom sectors will be instructive.