The arrival of the SGP.32 eSIM standard will transform the market for cellular-based IoT connectivity, according to market watcher Transforma Insights.

Businesses relying on globally connected IoT devices are facing a major shift in how these assets will need to be managed, driven by new technical standards and evolving market complexities, according to the report.

Produced in collaboration with global IoT connectivity specialist Eseye, the report says upcoming technologies such as the SGP.32 standard for eSIMs, coupled with more selective network operator policies, will compel connectivity providers to adopt new strategies and specialist roles, such as an eSIM orchestrator, to maintain control and efficiency.

The report indicates that the era of simple, unfettered global connectivity for business devices is evolving, presenting complexities for businesses. The key challenges and developments driving this transformation include: 

• The upcoming commercial launch of the SGP.32 standard for remote SIM provisioning
• Mobile network operators (MNOs) becoming increasingly cautious about granting network access, particularly for eSIMs, seeking stronger guarantees on device security, certification and network resource use
• A complex and tightening web of international regulations concerning data sovereignty, cyber security and permanent roaming restrictions in many countries

“Enterprises are navigating a period of significant change in how global device connectivity is delivered and managed,” said Matt Hatton, founding partner at Transforma Insights. “The new SGP.32 standard provides a powerful tool for remote SIM provisioning. In conjunction with a more demanding regulatory and MNO landscape, our analysis points towards a fundamental shift requiring businesses to be more strategic. This is where we see the emergence of roles like the eSIM orchestrator becoming critical.”

The eSIM orchestrator would specialise in managing the complexities of this new environment. According to the paper, key responsibilities and characteristics of such a role would include:

1. ESIM profile management: Actively managing eSIM profile downloads and swaps according to robust policy frameworks, including service activations and cancellations.
2. Profile lifecycle management: Optimising the use of eSIM profiles to balance network availability, regulatory compliance and commercial factors, including end-of-life management.
3. Network capability awareness: Understanding the diverse capabilities and technologies such as NB-IoT and 5G SA of various MNO networks to ensure appropriate profile selection.
4. Device awareness: Considering the capabilities and certification requirements of the IoT devices themselves, including power constraints, when managing eSIM profiles.
5. Billing simplification: Acting as a single point of billing for enterprises, handling usage checking and reconciliation across multiple MNOs.
6. Customer support: Providing unified global customer support as a single point of contact for commercial enquiries, fault resolution and escalations.
7. Trusted relationships with MNOs: Cultivating strong, trusted partnerships with MNOs, who are increasingly selective about granting eSIM profile access.
8. Compliance with eSIM management obligations: Ensuring adherence to specific country regulations regarding eSIM localisation and data sovereignty.
9. Commercial plans and tariffs management: Managing and optimising based on the various commercial plans, tariffs and services offered by MNO localisation partners.
10. Comprehensive managed service: Delivering these capabilities as part of a holistic managed service, simplifying the complexities of remote SIM provisioning for enterprises.

The paper suggests this shift will move the industry beyond basic connectivity resale towards more sophisticated, managed service models. For businesses, this means that simply acquiring SIMs will no longer be sufficient; a more holistic approach to managing the lifecycle, compliance and diverse connectivity options of their devices will be necessary.

“The way businesses manage their connected devices globally is undoubtedly transforming,” said Ian Marsden, CTO at Eseye (www.eseye.com). “Proactive companies will be looking beyond the immediate technical changes, like SGP.32, to understand the broader operational and strategic implications. Having a clear strategy for device connectivity management, which considers the need for specialised eSIM orchestration and unified control, will be increasingly important to de-risk operations, ensure compliance and maintain a competitive edge.”

Transforma Insights concludes that as reliance on globally connected devices grows, the current evolution in technology and market practices necessitates a significant reassessment of connectivity management strategies for all affected enterprises.

For more on the report, go to transformainsights.com/research/reports/esim-orchestration-driving-next-wave-iot-connectivity.