Counterpoint: IoT connections using eSIM will reach 2.2 billion by 2030

A recent report on the outlook for IoT connections by Counterpoint shows that IoT connections using eSIM are expected to grow rapidly at a rate of 43% per year, reaching 2.2 billion by 2030. By 2030, nearly 1/3 of IoT connections will be achieved through eSIM or iSIM.

Commenting on the current state of IoT eSIM connections, Mohit Agrawal, Associate Director, IoT eSIM, said: “Due to restrictive M2M eSIM specifications, IoT eSIM growth has lagged behind the consumer space. As a result, despite the product being a good fit for the market, the number of eSIM connections in the IoT space will be just under 200 million by the end of 2023.”

Agrawal added: “China is the world’s largest IoT market, and eSIM penetration in China is low due to restrictive regulations on eSIM in the past and a higher percentage of LPWA devices that currently do not support eSIM. eSIM penetration in other parts of the world is much higher than in China, but China’s large IoT base keeps overall global eSIM penetration at less than 10%.”

Commenting on the eSIM forecast, Senior Research Analyst Ankit Malhotra said: “GSMA’s new standards for IoT eSIM (SGD.31/32) are expected to make eSIM suitable for constrained devices, which could significantly boost the growth of eSIM and later iSIM. eSIM vendors and IoT connectivity providers have already conducted multiple proofs of concept for the new IoT eSIM standard, and a major boost is likely next year when the GSMA releases the test specifications. Early adopters of eSIM in IoT have been primarily the automotive industry, as enterprises have not really been able to change connectivity providers at will.”