The cellular IoT market is undergoing a significant shift: physical subscriber identity module (SIM) cards as we know them are becoming virtualized in the form of embedded SIMs (eSIMs) or integrated SIMs (iSIMs). In 2023, the IoT module eSIM/iSIM market is poised to surpass the 500-million-unit mark. Just in the first quarter, over 450 million IoT modules were already capable of supporting eSIM or iSIM—roughly 16% of the 2.8 billion active global cellular IoT connections. This data indicates the growing demand for flexible, fast, and efficient connectivity solutions in the new age of cellular IoT.
The rise of eSIM/iSIM technology is not just a mere technological advancement; it is a paradigm shift. It is about the seamless integration of IoT devices, the simplification of connectivity, and the enhancement of user experience. The use of eSIMs/iSIMs can help businesses decrease time to market and improve the efficiency of IoT deployments.
An eSIM is an integrated circuit that combines hardware, a secure element, and software called a universal integrated circuit card (UICC). eSIMs are typically available in various form factors, including machine-to-machine form factor (MFF2), wafer-level chip scale packaging (WLCSP), and miniaturized leadless packages. Specifically, eSIMs use an embedded UICC (eUICC) with a secure element for enhanced security
An iSIM is a type of eSIM where an integrated UICC (iUICC) with a secure element is manufactured into a system-on-chip (SoC) or system-in-package (SiP).