Giesecke+Devrient (G+D) believes eSIM technology will play a pivotal role in enabling secure, flexible and scalable connectivity for billions of IoT devices worldwide.

The number of IoT devices is growing exponentially, with applications increasingly spanning industries such as transportation and logistics, agriculture, energy management, and manufacturing.

Initially developed for the automotive sector and M2M use cases, the eSIM is now indispensable across nearly all IoT domains. It provides the robust and adaptable connectivity that IoT devices require throughout their entire lifecycle, from production on the factory floor to deployment in the field.

The new eSIM standard SGP.32 introduces significant improvements compared with the widely used SGP.02 specification. While SGP.02 relies on SMS-based communication and therefore cannot fully meet the requirements of today’s interconnected IoT ecosystem, SGP.32 supports various IP-based communication protocols. This enables IoT devices to be managed more efficiently and flexibly throughout their lifecycle.

SGP.32 also simplifies profile switching, helping device manufacturers more easily comply with regional and regulatory requirements, such as local roaming rules. Although adoption of SGP.32 increases and SGP.02 remains widely used in sectors such as automotive, it is essential that connectivity management platforms support both standards and allow enterprises to manage existing and new device fleets centrally.

In-factory profile provisioning (IFPP), with remote SIM provisioning (RSP), simplifies device handling and improves the user experience. IFPP is an innovation that securely and automatically loads eSIM profiles onto IoT devices during the manufacturing process.

This means either a bootstrap profile can be installed – allowing the device to receive its final subscription automatically once activated – or the final subscription itself can be provisioned directly at the factory. No manual configuration or physical intervention is required after production. In addition, RSP allows eSIM profiles to be remotely managed and updated over the air, making it possible, for example, to switch profiles to a different mobile network operator on-site.

One of the strongest industry trends is the growing deployment of private 5G networks. Here too, IFPP, SGP.32 and eSIM technology deliver major advantages, says G+D.

First, eSIMs enable machines to connect directly to 5G networks, whereas traditional SIM cards are less reliable due to risks such as corrosion or vibration. For large machine fleets in particular, a centralised management platform, such as eSIM management, is indispensable.

Secondly, eSIMs ensure seamless device connectivity; IoT devices can be equipped with connectivity via a private 5G network in the factory and then transition smoothly to public networks in the field. With SGP.32, profile changes can later be made, for example, switching to another operator if coverage in a given area proves insufficient.

Cellular-based connectivity and by extension eSIM technology offers advantages in terms of security and manageability compared with wifi or Bluetooth, which are often used in manufacturing environments. Cellular networks are built on global standards, whereas wifi and Bluetooth are subject to different regional regulations that increase administrative complexity.

Although wifi and Bluetooth are technically free, cellular connectivity can also be delivered cost-effectively. For instance, G+D has developed AirOn360 Intelligent Online that supports time-limited IoT connectivity. By activating connectivity only when required, companies can significantly reduce cellular data costs.

Because eSIMs are embedded directly into devices and can be managed via RSP, they are particularly valuable for devices deployed remotely in the field. Unlike physical SIM cards, which require on-site replacement when changes are needed, eSIMs eliminate that logistical burden.

They also streamline inventory management, as standardised device models can be used across multiple regions, reducing the number of required SKUs. In addition, eSIM adoption allows companies to lower costs by removing the need for traditional SIM card slots and components.

“In the IoT sector, eSIM technology will be central to advancing modern connectivity and manufacturing processes,” said Sönke Schröder, director at G+D. “Key advantages include digitalisation of workflows, greater efficiency, cost savings and enhanced security. ESIMs also provide a high degree of flexibility and are network-agnostic, meaning that IoT devices can switch providers multiple times over their lifetime. Users can choose the best operator based on factors such as coverage, quality, required bandwidth, price or device location. New profiles can then be securely and efficiently provisioned, for example, through G+D’s AirOn360 platform.”

G+D (www.gi-de.com) is a security-tech company headquartered in Munich, Germany. It was founded in 1852 and has a workforce of more than 14,000 employees. In 2024, the company generated a turnover of €3.1bn. G+D is represented by 118 subsidiaries and joint ventures in 41 countries.