Since its launch, eSIM (Embedded-SIM, embedded SIM card) technology has been hailed as a new step in the development of IoT devices. Arguably the most interesting impact is in the area of IoT devices, which are expected to improve in terms of reliability, security and longevity by using embedded chips instead of SIM cards. However, eSIM technology has been on the market for more than four years, and its range of applications is still relatively limited (mobile phones, laptops, portable modems, etc.).

eSIM technology offers many benefits to IoT devices, some are incremental improvements to SIM cards and some are complete game-changers. This article provides an overview of some of the most noteworthy issues.

1. Information security and IoT device security

The killer feature of an eSIM is switching between multiple profiles by downloading them to the chip. While this greatly improves the quality of life, it is a strong warning sign for anyone concerned about cybersecurity, as it implies the possibility of tampering.

To counter this risk, GSMA (Global System for Mobile Communications Association) proposed a protection layer called SM-DP+. This solution involves authentication via an external server, preventing switching profiles from any other device.

eSIM has a huge advantage stemming from its embedded nature. Unlike regular SIM cards, which are easily removed, eSIMs are hardwired into the device. This allows IoT devices to be tracked whenever they are turned on, potentially reducing the risk of device theft.

2. Improvements in the design of IoT devices

eSIM follows the miniaturization route of the SIM card. It's much smaller than its predecessor, measuring around 2.5x2.5mm, compared to 12.3x8.8mm for a nano-SIM. IoT devices vary widely in size, which can be a valuable asset for many applications:

(1) beacons and tracking devices;

(2) Independent connection solution;

(3) medical equipment;

(4) Wearable.

In addition to its small size, the eSIM's embedded design allows for the removal of the slot, which would take up a lot of space inside the device, not to mention the added complexity. In this case, the technology removes some of the limitations that have held back IoT development.

3. IoT device lifespan

In addition to being bulky, the aforementioned SIM port comes with a pretty big downside: it compromises the integrity of the device's casing. This isn't a problem with phones, which are typically used in milder environments. But on the other hand, many IoT devices are often exposed to harsh environments, and such devices need to withstand many challenges:

(1) Moisture;

(2) extreme temperature;

(3) Vibration;

(4) Physical influence;

(5) Dust and other particles.

With eSIM, these problems will no longer be a problem, and the device casing can be designed to be as strong as possible, which will significantly extend the life of the device. At the same time, the design without connectors minimizes the possibility of failure or failure, further increasing the reliability of the device.

4. Interoperability of IoT devices

Finally, it is worth mentioning the strategic considerations. eSIM uses a single standard, which is supported by many carriers and hardware manufacturers. This is a major argument in favor of widespread adoption, especially in areas that have been slow to embrace innovation. Scaling to this point, there is an opportunity for scalability, enabling large-scale deployment of eSIM-powered IoT solutions.

Despite these advantages, actual adoption of eSIMs in the IoT space has been slow. Currently, there are very few devices on the market that support eSIM.

eSIM technology sounds like a perfect match for IoT devices, improving solutions' security, design and scalability. Some of these roles have yet to be proven, but the proven roles will undoubtedly benefit IoT device innovation.