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2020 Prediction Series: eSIM Gains Traction

4 minute read

As we look ahead to the rest of this year, there will be a number of exciting developments related to the continued advance of IoT technology. Perhaps one of the more anticipated trends is eSIM technology, which will gain measurable traction in 2020.

Why eSIM Technology?

Many IoT solutions struggle with inconsistent data connectivity and delivery. There are three drivers for these challenges:

  1. Regular SIMs depend on a single carrier, providing limited coverage, reliability, and availability.
  2. Variable conditions such as: spectrum refarming, coverage changes, pricing fluctuations, and usage demands.
  3. Global deployments requiring multiple carriers, contracts, and SIMs, bring complexity and costs.

Legacy IoT devices can only connect to a single carrier and technology, whereas eSIM allows devices to remotely and instantly switch carriers or technologies on an as-needed basis. eSIM will deliver efficiencies, reduce costs, and improve performance.

Why now?

Beecham Research projects worldwide eSIM growth will more than double from 28 million units in 2018 to 60 million units in 2020. These figures exclude growth that will result from eSIMs placed in connected cars.

eSIM growth is predicted to more than double in growth this year – from 28 million units in 2018 to 60 million units in 2020

There are three fundamental reasons why 2020 is the year eSIM will gain greater adoption. First, customers are ready. Conversations across our base of more than 6,000 global customers indicate that organizations are ready to deploy eSIMs.  Many companies deploying IoT solutions, if not most, are excited about the savings eSIM can deliver as well as simplifying their supply chains.

The second reason is that eSIM standards already exist. GSMA’s extensive eSIM standards have helped prepare the industry for a rapid transition from traditional SIMs to eSIMs.

Finally, and most importantly, eSIM solutions are ready. The IoT ecosystem requires a true eSIM offering, and modern, advanced connectivity solutions are being built around a framework of three use cases that tie directly to the above challenges: Solutions that are natively connected, future proofed, and incorporate autonomous switching.

The ideal solution should consist of a combination of eSIM technology and Mobile Core Network capabilities. eSIM technology will allow global organizations to overcome local challenges with the ability to change profiles whenever needed.

Market demand will unquestionably be the primary force driving eSIM in 2020 and beyond. IoT solution providers with mass-deployed field devices will eliminate expensive truck-rolls and physical SIM swaps each time a change is required. Global IoT device manufacturers installing multiple SIMs will drastically reduce costs and complexities by using the same eSIM for all worldwide units, streamlining manufacturing stages, and simplifying the supply chain process.

eSIM is truly a single, one-size-fits-all IoT connectivity solution. As a result, eSIM carrier partnerships are advancing quickly, and we are poised to deliver on the ultimate IoT promise: One SIM for the lifetime of your device!

Learn more about how KORE can help your organization take advantage of the many benefits eSIM technology can offer. Or download our ebook, eSIM 101, to get started on your eSIM journey.


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