The IoT is growing dynamically and the eSIM plays a central role in this, as it enables the secure, flexible and scalable networking of billions of devices worldwide. As a provider of global connectivity solutions for the IoT, Giesecke+Devrient (G+D) will name the numerous advantages of the eSIM and present current new developments.
The number of IoT devices is growing rapidly and IoT applications are increasingly found in segments such as transport and logistics, agriculture, energy management or manufacturing. The eSIM – originally developed for the automotive industry and M2M applications – has become indispensable in many areas of the IoT. It is essential for the availability of robust and adaptable connectivity that IoT devices rely on throughout their lifecycle – from production in the factory to use in the field. G+D lists the decisive advantages of the eSIM for the specific requirements of the IoT.
1. SGP.32 increases flexibility
The new eSIM standard SGP.32 brings numerous improvements compared to the previously used SGP.02 specification. While SGP.02 relies on SMS-based communication and therefore cannot meet all the requirements of an increasingly networked IoT ecosystem, SGP.32 supports various IP-based communication protocols. This allows IoT devices to be managed more efficiently and flexibly throughout their lifecycle. SGP.32 also greatly facilitates the process of switching profiles, allowing device manufacturers to more easily adapt to regional or regulatory requirements such as local roaming regulations. Even though the use of SGP.32 is increasing, SGP.02 continues to be used in parallel, for example in the automotive sector. Consequently, it is important that a connectivity management platform supports both technologies. This means that existing and new device fleets can also be managed centrally.
2. IFPP provides seamless connectivity from the factory
In-Factory Profile Provisioning (IFPP) and Remote SIM Provisioning (RSP) improve handling and user experience. IFPP is an innovative solution for the secure and automated loading of eSIM profiles on IoT devices during the manufacturing process. This allows a so-called bootstrap profile to be loaded so that the device then receives the final subscription based on rules when it is switched on. Alternatively, it is also possible to equip the device with the final subscription. Manual configuration or other physical intervention after completion is no longer required. An RSP solution also enables remote management and updating of eSIM profiles directly over-the-air. For example, the profiles can be transferred locally from another mobile network operator.
3. eSIMs support the construction of private 5G networks
One trend in the industry is the increased use of private 5G networks. Here, too, IFPP technology, the SGP.32 standard and eSIMs offer decisive advantages. On the one hand, machines can be connected to the 5G network via eSIMs. Classic SIMs are less suitable for this due to the risk of corrosion and vibration. Especially with a large machine park, a central management platform, such as that offered by eSIM management, is also indispensable. On the other hand, this ensures seamless connectivity of the IoT devices. They are equipped with connectivity in the factory via the private 5G network and then seamlessly integrated into the public network in the field. With SGP.32, it is then possible to make changes, such as choosing a different network operator in the event of poor local coverage.
4. Mobile networks are efficient, secure and cost-effective to use
Mobile-based connectivity and thus eSIMs offer advantages in terms of security and management – especially in contrast to the WiFi or Bluetooth processes used in production. For example, mobile communications are based on established standards, while WiFi and Bluetooth have to take into account different region-specific regulations, which increase the administrative burden. Although WiFi and Bluetooth are free of charge in principle, the mobile phone connection can also be inexpensive. G+D, for example, has designed the AirOn360 Intelligent Online solution for this purpose. It supports time-limited IoT connectivity. If devices are only equipped with connectivity as needed, lower mobile phone fees are also incurred.
5. eSIMs simplify product design and inventory management
eSIMs are firmly embedded in devices and management can be done via an RSP solution. This is especially important for devices that are used remotely in the field. In the case of SIM cards, the cards would have to be replaced on site in the event of changes. In addition, eSIM technology supports simplified inventory management with standardized device models across different regions. This also significantly reduces the number of stock keeping units (SKUs) required. Last but not least, businesses using eSIMs can make significant savings by reducing bill-of-materials (BOM) costs by eliminating the need for traditional SIM cards.
“In the IoT sector, the eSIM will play a decisive role in the implementation of modern connectivity and production processes. Its key benefits are the digitalization of processes, increased efficiency, cost savings and security. In addition, eSIMs offer a high degree of flexibility and are network-independent, which means that the provider can be changed several times during the service life of an IoT device.
Users can thus choose the best provider based on factors such as network coverage, quality, required bandwidth, price or device location. New profiles can be provided securely and efficiently, for example via G+D’s AirOn360 platform,” explains Sönke Schröder, Director Global Go-to-Market Strategy & Innovations for Connectivity & IoT at G+D.
