Kaleido Intelligence Forecasts eSIM Adoption Surge for IoT
In the ever-evolving landscape of the Internet of Things (IoT), the concept of connectivity has reached new heights. The emergence of embedded SIM (eSIM) technology has ushered in a wave of transformation, poised to redefine how devices interact, communicate, and gather data.
At the forefront of this revolution is Kaleido Intelligence, a leading market research firm renowned for its insightful predictions and meticulous analysis. In this article, we delve into Kaleido Intelligence’s latest forecast regarding the impending surge in eSIM adoption for IoT applications. Join us as we uncover the driving factors, potential challenges, and the profound impact this surge could have on the realm of connected devices.
Unveiling the Forecast
Kaleido Intelligence, revered for its accurate industry forecasts, has turned its spotlight onto the eSIM landscape within the IoT ecosystem. The research experts at Kaleido Intelligence have meticulously examined market trends, historical data, and technological advancements to project a significant surge in the adoption of eSIM technology. They poise this forecast to disrupt conventional norms, enabling a seamless transition towards a hyper-connected future.
Key Drivers of eSIM Adoption
The catalysts propelling the projected surge in eSIM adoption are multifaceted and compelling. One pivotal factor is the ever-expanding scope of IoT applications. From smart cities to industrial automation, from healthcare to logistics, the IoT has woven its threads into the fabric of our daily lives. As this ecosystem grows, the need for streamlined and flexible connectivity solutions becomes paramount.
eSIM technology, with its programmable and remotely manageable nature, offers unparalleled convenience. It allows devices to be provisioned and connected to networks with no physical SIM card swaps. This dynamic characteristic not only reduces operational complexity but also paves the way for efficient global deployment of IoT devices.
While the forecast is optimistic, it’s essential to address potential obstacles that could hinder the seamless realization of this projected eSIM adoption surge. One such challenge is the interoperability of eSIM across diverse networks and ecosystems. The harmonization of standards and protocols is vital to ensure that eSIM-enabled devices can seamlessly connect and communicate regardless of their location.
Another challenge stems from security concerns. As devices become more interconnected, the threat landscape expands. Ensuring robust security measures to safeguard sensitive data transmitted through eSIM-enabled devices is of paramount importance. Industry players must collaborate to develop and implement stringent security protocols to mitigate potential risks.
Implications for the IoT Landscape
The implications of the projected eSIM adoption surge are profound and far-reaching. The ability to remotely manage and provision connectivity profiles empowers businesses to scale their IoT deployments rapidly and efficiently. This surge also aligns with the broader trend of digital transformation, enabling organizations to harness the full potential of data-driven insights.
Industries such as fleet management, healthcare monitoring, and smart agriculture stand to benefit immensely from this surge. Remote diagnostics, real-time tracking, and predictive analytics can flourish with the increased adoption of eSIM technology. The reduction in operational complexities and the potential for cost savings further solidify the value proposition of eSIM adoption.
As we stand on the cusp of this projected eSIM adoption surge, it’s clear that it poised the landscape of IoT for a remarkable transformation. Kaleido Intelligence’s forecast serves as a compass, guiding industry players towards strategic decisions that can harness the power of eSIM technology. The convergence of connectivity, convenience, and efficiency is on the horizon, promising a future where the IoT ecosystem thrives like never.
In conclusion, the impending surge in eSIM adoption for IoT applications, as forecasted by Kaleido Intelligence, holds immense promise. The convergence of technological advancement, market demand, and operational efficiency sets the stage for a new era of connected possibilities. As we embrace this wave of transformation, collaboration, standardization, and security will play pivotal roles in shaping the success story of eSIM technology within the IoT landscape.
A report by Kaleido Intelligence projects a surge in the adoption of embedded SIM (eSIM) technology for IoT applications.
The study predicts that over 1.4 billion eSIMs will be shipped by 2028, reflecting a compound annual growth rate of 21 percent between 2023 and 2028. Over 1.4 billion eSIMs (including eUICC and iUICC form factors) are forecast to be shipped in 2028
As MNOs adapt to the changing landscape, Kaleido’s report expects a notable shift in their strategies.
Kaleido Intelligence’s data forecasts a robust average growth of 77 percent in smartphone eSIM activations between 2023 and 2028. However, the most profound transformation is expected in the IoT realm.
The commercialisation of the IoT specification for eSIMs is expected to drive increased demand in the coming years. The report’s analysts predict that over half of all active IoT eSIMs will adopt the new specification by 2028.
Overcoming historical challenges, the eSIM technology is set to play a transformative role in Low Power Wide Area Network (LPWAN) connectivity, which includes technologies like Narrowband IoT (NB-IoT) and LTE-M.
Addressing prior limitations, the IoT specification introduces CoAP (Constrained Application Protocol) support for transport and a “lightweight” eSIM profile, significantly reducing power consumption for eSIM LPWAN campaigns.
Steffen Sorrell, Chief of Research at Kaleido, said:
“The eSIM market has seen several developments recently that smooth the path to adoption, and address many lingering ecosystem challenges.
The effect of this will mean eSIM or iSIM form factors will gradually become a de facto requirement by 2028 for most cellular devices.”
The Kaleido Intelligence report illuminates a future where IoT devices will rely on eSIMs to usher in a new era of seamless, connected experiences across industries and help to fuel innovation and productivity.