Language 
No results found
What is IoT eSIM? A complete guide to embedded SIM for connected devices
Learn what IoT eSIM is, how it works, and why it enables scalable global connectivity for connected devices.
IoT devices are deployed across multiple countries, installed in remote locations, and operate for long lifecycles.
IoT eSIMs address these problems through remote provisioning and programmable connectivity for industrial devices such as sensors, machines, and vehicles. For businesses managing field operations and traveling teams alongside IoT deployments, Holafly for Business provides reliable connectivity solutions with centralized management across 160+ destinations.
Business travel made easy
What is IoT eSIM?
An eSIM for IoT is a non-removable chip soldered to a device’s circuit board that stores multiple network profiles and enables remote over-the-air provisioning for connected devices.
Key characteristics
- Embedded hardware. The eSIM is soldered onto the board using the MFF2 form factor, is ruggedized, and is designed to eliminate the need for a SIM slot.
- Remote provisioning. Network profiles are downloaded over the air after manufacturing, and carrier changes can be made without device access, enabling a single SKU approach.
- Multi-profile storage. Each chip can store 4–5 operator profiles, and profiles can be switched remotely based on policies, avoiding roaming restrictions.
What makes it “IoT”
A global IoT eSIM follows GSMA standards SGP.02 and SGP.32, not the consumer SGP.22 standard. It’s designed for headless devices, constrained power and bandwidth environments, large-scale fleet management, and 5–10+ year lifecycles.
How does IoT eSIM work?
An eSIM for IoT devices uses a technical stack that separates hardware, profile delivery, and device management to enable remote, large-scale connectivity control.
The ecosystem
The eUICC is the software environment on the eSIM that stores network profiles and enables remote provisioning. The SM-DP+ is the server, operated by carriers or connectivity platforms, that delivers eSIM profiles to devices. The eIM is the central management platform that controls device connectivity across the fleet. The IPA is the on-device software responsible for profile downloads.
Provisioning process
During manufacturing, the device ships with an eSIM chip but without a carrier profile. After deployment in the field, the eIM triggers a profile download based on location or policy. Once active, profiles are monitored and switched remotely based on cost, coverage, or performance.
Note: IoT eSIM uses end-to-end encryption, a secure element, and GSMA-compliant standards (SGP.02 and SGP.32) to protect profiles and provisioning processes.
IoT eSIM vs. traditional SIM vs. consumer eSIM
| Attribute | Traditional SIM | Consumer eSIM | IoT eSIM |
|---|---|---|---|
| Form factor | Removable plastic card | Embedded, user-enabled | Embedded, soldered (MFF2) |
| Provisioning method | Manual insertion and replacement | User-initiated download via device UI | Remote over-the-air provisioning |
| Target devices | Phones, routers | Smartphones, wearables | Industrial and embedded devices |
| Control | Mobile operator | End user | Enterprise or connectivity platform |
| Use cases | Local or roaming mobile service | Personal travel and consumer plans | Large-scale IoT deployments |
| GSMA standard | None | SGP.22 | SGP.02 and SGP.32 |
| Scale | Low | Low to medium | High (thousands to millions of devices) |
Traditional SIMs rely on regional SKUs, manual swaps, and carrier locks. Consumer eSIMs require a user interface, focus on personal privacy controls, and don’t support centralized management.
IoT eSIM enables centralized management, policy automation, and long-term operation in constrained environments, making it suitable for global, large-scale, and long-lifecycle device deployments.
Key benefits of IoT eSIM
As of 2023, 33% of IoT modules shipped were eSIM-capable, with adoption continuing to grow.
Global scalability
- Challenge: Global deployments require different SIMs per country, increasing SKUs and supply chain complexity.
- Solution: IoT eSIM enables single-SKU manufacturing with profiles provisioned after deployment.
- Impact: Faster launches and simpler global scaling.
- Example: One device model ships worldwide and activates locally on arrival.
Operational efficiency
- Challenge: Physical SIM swaps require on-site access and truck rolls.
- Solution: Remote management enables profile changes without device access.
- Impact: Lower operational cost and reduced downtime.
- Example: A failed network is replaced remotely within minutes.
Regulatory compliance
- Challenge: Permanent roaming restrictions can block long-term connectivity.
- Solution: Local profiles are downloaded to meet country regulations.
- Impact: Continuous service without regulatory risk.
- Example: Devices switch to in-country carriers after deployment.
Network resilience
- Challenge: Single-network dependence increases outage risk.
- Solution: Multi-network failover allows automatic profile switching.
- Impact: Higher uptime and service reliability.
- Example: Connectivity shifts when coverage degrades.
Cost optimization
- Challenge: Fixed carrier contracts limit pricing control.
- Solution: Policies select networks based on cost and performance.
- Impact: Lower data spend over the device lifecycle.
- Example: Devices use lower-cost carriers per region.
Future-proofing
- Challenge: Network sunsets and technology changes disrupt long lifecycles.
- Solution: Profiles update as networks evolve.
- Impact: Devices remain usable for 5–10+ years.
- Example: A device transitions from legacy to modern networks without hardware changes.
Common IoT eSIM use cases
An IoT eSIM is used when devices must stay connected for years, operate without physical access, and scale across regions, industries, and network environments without manual intervention.
1. Connected vehicles and fleet management
Connected vehicles rely on continuous connectivity for tracking, telematics, and diagnostics across regions. IoT eSIMs let vehicles cross borders and operate for years without physical access by switching carriers automatically as coverage and regulations change.
2. Asset tracking and logistics
Asset tracking systems monitor the location and condition of high-value goods in transit. IoT eSIMs provide consistent global coverage without roaming risk by allowing trackers to download local profiles as shipments enter new regions.
3. Smart meters and utilities
Smart meters use cellular connectivity to monitor electricity, gas, and water usage remotely. IoT eSIMs support fixed, long-lived devices by allowing meters to change networks without on-site maintenance once installed.
4. Industrial IoT and manufacturing
Industrial IoT systems monitor machines and production lines via sensors in real time. IoT eSIMs enable reliable connectivity and centralized control at scale, letting devices fail over to backup networks during outages.
5. Healthcare and medical devices
Healthcare systems use connected devices for remote patient monitoring and medical equipment management. IoT eSIMs maintain secure, compliant connectivity over long lifecycles, enabling devices to switch profiles and maintain uptime.
6. Agriculture and environmental monitoring
Agriculture and environmental systems rely on connected sensors to monitor soil, weather, and equipment in rural areas. IoT eSIMs adapt to uneven coverage and limited access by allowing sensors to select networks with the strongest available signal.
7. Smart cities and infrastructure
Smart city deployments connect lighting, traffic systems, and environmental sensors across vast areas. IoT eSIMs support centralized management and network resilience by allowing infrastructure to adapt connectivity as networks change.
When do you need IoT eSIM?
You need an IoT eSIM if your deployment meets one or more of the following conditions:
Deploying devices across multiple countries.- Devices operate in remote or inaccessible locations.
- Large-scale deployments with thousands of units or more.
- Long device lifecycles of 5+ years.
- Permanent roaming restrictions apply.
- Network redundancy is required.
Before adoption, assess scale, expected device lifecycle, post-deployment physical access, country-specific regulatory constraints, network requirements, and connectivity costs.
High-level IoT eSIM implementation follows five steps:
- Choose an eSIM IoT connectivity platform.
- Select eSIM-capable modules.
- Define provisioning and switching policies.
- Integrate management systems.
- Run a limited pilot before full deployment.
IoT eSIM vs. business travel connectivity
IoT eSIMs are for industrial devices such as sensors, machines, and vehicles that operate without human interaction, while business eSIMs are for employees who need mobile data when traveling internationally.
| When you need an IoT eSIM | When you need a business travel eSIM |
|---|---|
| Connected sensors, machines, and embedded devices. | Employees traveling for meetings, conferences, or client visits. |
| Devices are deployed at scale across countries. | Short-term or recurring international trips. |
| No user interface or physical access after installation. | Smartphones are used directly by people. |
| Long lifecycles and centralized fleet management. | Simple activation and immediate data access. |
| Policy-based network switching and redundancy. | Reliable mobile data for work on the move. |
Business travel connectivity: Holafly for Business
Holafly for Business provides mobile data for international business travelers and remote teams, not industrial IoT devices.
The business eSIM service supports meetings, conferences, and client visits, where employees need peace of mind on arrival. Companies manage plans through a centralized management hub, enabling consolidated control and remote employee eSIM activation.
Holafly for Business offers unlimited data, coverage in more than 160 destinations, and no international roaming charges. Request a demo to see how Holafly can support your business, or explore Holafly Plans for Business.
Choose Always On (€9.95/year) for light usage, Unlimited (€57/month per eSIM) for frequent travelers who need uncapped data and built-in security, or Enterprise (custom pricing) for organizations that require tailored solutions.
Business travel made easy
Plans that may interest you
I am a Liverpool-based SEO content specialist with years of experience crafting content that connects. I combine my love for clear communication with a passion for travel and languages (currently diving into Japanese!). At Holafly, I'm here to help you understand everything about staying connected abroad, turning technical jargon into straightforward advice you can actually use.
