eSIM technology is now in the ‘scale phase’, transitioning from a novel concept to a tangible reality. In the past year alone, 271 consumer eSIM devices were launched, and 441 operators across 123 countries introduced eSIM services.
This rapid adoption is driven by the increasing demand for seamless connectivity and the convenience of managing multiple profiles on a single device. Projections indicate that global eSIM penetration will reach 76% by 2030, highlighting the technology’s growing importance in the mobile and IoT landscape.
eSIM – The Global Context
Then there’s industry adoption. The automotive industry has been a significant adopter of this technology, with connected vehicles becoming the norm. eSIMs play a crucial role in enabling features such as real-time navigation, remote diagnostics, and over-the-air updates. Beyond the automotive sector, other industries are beginning to recognise the benefits of this technology. Enhanced specifications for IoT, a growing range of devices and solutions, the expanding rollout of private networks, and support for sustainability initiatives are all driving the adoption of eSIMs across various sectors.
Ahead of Thales’ attendance at Mobile World Congress 2025, we sat down with Mobile World Live to discuss the business and operational impacts of rapid eSIM adoption on the mobile and IoT landscape. Eva Rudin, Vice President Mobile Connectivity Solutions, Cybersecurity and Digital Identity; Grégory Laloy, Head of IoT Product Line and Benjamin Mazet, On-Demand Connectivity Product Line Manager from Thales Mobile Connectivity joined Chris Donkin from Mobile World Live to explore IoT challenges and how SGP.32 based connectivity, combined with a security-first approach, will create a more resilient and reliable IoT ecosystem. In case you missed it, this article provides an overview into the issues discussed.
eSIM’s Role in Global Connectivity
Maintaining seamless and secure connectivity, irrespective of geographical location, has become a necessity. eSIM technology ensures ubiquitous connectivity for both consumer and IoT devices, transforming SIM cards from mere authentication tools into critical enablers of connectivity. This technology allows users to switch carriers without the need for physical SIM cards, providing greater flexibility and convenience. For IoT devices, eSIMs enable remote provisioning and management, simplifying the deployment and maintenance of large-scale IoT networks.
Thales integrates cybersecurity into all its eSIM solutions from inception. This approach ensures that eSIM technology provides a robust trust anchor for connectivity, continually evolving to meet the demands of an increasingly digital landscape. Thales’ commitment to cybersecurity is evident in its integration of eSIM technology, designed to safeguard identities and assets against a broad spectrum of threats. By embedding security features directly into eSIMs, Thales helps protect against unauthorised access and data breaches, ensuring the integrity and confidentiality of communications.
Real-World Applications for eSIM
The automotive sector exemplifies the transformative potential of eSIM technology. All new vehicles are now equipped with cellular connections, with over 50% of these connections provided by Thales. One notable use case is the replacement of emergency warning triangles with connected beacons in Spain by 2026, facilitated by Thales’ industry-grade eSIMs. This evolution underscores the expanding need for global cellular connectivity across a diverse array of devices. Additionally, digital car keys, which can be shared on mobile phones at any time, eliminate the need to queue for rentals and open up a wide range of smart use cases for fleets and private individuals.
Various sectors benefit from eSIM technology, with Thales continuously tailoring solutions to meet specific industry requirements. For instance, in the healthcare sector, eSIMs enable secure and reliable connectivity for medical devices, ensuring continuous monitoring and real-time data transmission. In the logistics industry, eSIMs facilitate the tracking and management of assets, improving operational efficiency and reducing costs. The flexibility and scalability of eSIM technology make it an ideal solution for a wide range of applications, driving innovation and efficiency across industries.
Support for Telecom Operators in the adoption of eSIM
Thales plays a crucial role in supporting the adoption and implementation of eSIM technology, particularly for telecom operators. The ability to remotely provision eSIMs is critical, and this necessity has been proven in the field over the past year. Various operators have developed strategies to manage the increase in traffic, especially during significant events like the launch of the latest iPhone, where Thales’ platform supported a tenfold increase.
By sharing guidelines to improve the end-user experience and providing innovative approaches like the carrier application, Thales ensures that the operator’s brand remains at the center. This alignment of technology with business propositions is crucial, and Thales has the capability to adapt solutions at the edge to meet specific needs. As a market leader in eSIM management, Thales has activated more than 200 million eSIMs globally.
SGP.32 Standard for IoT
The GSMA’s SGP.32 standard represents a significant advancement in the management of connectivity for massive IoT deployments. Designed to address the unique requirements of IoT applications, SGP.32 provides a scalable, secure, and efficient framework for managing the connectivity of vast fleets of IoT devices, such as smart meters, connected vehicles, and industrial sensors.
Thales has been at the forefront of developing and deploying eSIM solutions that align with the GSMA’s specifications. Thales’ Adaptive Connect (TAC) enhanced SGP.32 solution exemplifies this commitment, providing the flexibility and scalability required by massive IoT deployments. TAC combines elements of the GSMA’s consumer and M2M (Machine-to-Machine) concepts to offer a robust and resilient connectivity framework for IoT devices. By supporting this standard, Thales ensures that its eSIM solutions can meet the diverse and evolving needs of IoT service providers.
Operational Implications of eSIM technology
Digitalisation
There is an increasing interest towards more digital methods like Entitlement Servers (ES), Carrier Application and one-click activation with SM-DS (Subscription Manager Discovery Server) to facilitate the eSIM activation process and more globally the full subscriber lifecycle management. Digitalisation also impacts the MNOs legacy processes: existing supply chain processes designed for traditional SIM cards need to be adapted for a faster, digital process to deliver on-demand eSIM services. This shift necessitates a robust and responsive supply chain capable of generating large volumes of eSIM profiles instantly and ensuring continuity of service. Thales’s solutions support digitalisation of MNOs with turnkey solutions to improve the subscriber digital experience and a digitalised eSIM supply chain.
Factory Provisioning
Factory provisioning is a critical step in the lifecycle of eSIM-enabled devices. This process streamlines the deployment of devices, reducing the time and effort required for post-purchase provisioning. Thales’ solutions support factory provisioning, enabling manufacturers to pre-load eSIM profiles and configure devices according to specific requirements. This capability enhances the user experience by providing seamless connectivity from the moment the device is powered on.
eSIM Lifecycle Management
Thales’ solutions provide comprehensive eSIM lifecycle management, including remote provisioning, profile updates, and deactivation. This capability allows operators to manage eSIMs efficiently, reducing operational costs and enhancing the user experience. In the IoT world, effective eSIM lifecycle management also ensures that devices can adapt to changing network conditions and security requirements, maintaining optimal performance throughout their lifespan.
Flexibility for MNOs
Mobile Network Operators (MNOs) require flexibility in eSIM management to handle the increasing variety of subscriptions. Dynamic profiles adaptation simplify business development by reducing the time to market to launch new offers. Thales’ solutions offer the flexibility to adapt profiles and change parameters as needed, ensuring full installation and activation with direct network access. This capability not only enhances service delivery but also reduces the cost of customer support.
Future Prospects for eSIM
IoT Connectivity Management
Managing IoT connectivity effectively is crucial, as it directly impacts the cost of implementation. Key factors such as efficiency, simplicity, and scalability are essential for successful IoT deployments. The introduction of new standards aims to enhance resilience and scalability, ensuring robust and reliable connectivity solutions. Thales’ end-to-end eSIM solutions facilitate mobile operators, enterprises, and IoT service providers in delivering a seamless connectivity experience.
Cybersecurity Challenges
As the importance of security grows, so do the challenges associated with it. Cybersecurity threats can lead to service interruptions and negatively impact brand reputation. Consequently, regulations are becoming more stringent across different regions, and this trend is expected to continue. Organisations must adapt their processes to ensure compliance with these evolving regulations, implementing the appropriate levels of security for various applications. Thales’ commitment to cybersecurity and regulatory compliance remains paramount, ensuring that its eSIM solutions provide a secure foundation for connectivity.
The Final Word
eSIM technology is at the forefront of transforming global connectivity, driving innovation and efficiency across various industries. As we move towards a more connected future, the importance of seamless, secure, and scalable connectivity solutions cannot be understated. Thales stands out as a leader in this domain, offering comprehensive eSIM solutions that address the diverse needs of both consumer and IoT markets.
Thales’ commitment to integrating cybersecurity, supporting telecom operators, and adhering to industry standards like SGP.32 ensures that eSIM technology is not only cutting-edge but also reliable and secure. Our expertise in factory provisioning, lifecycle management, and operational excellence makes them an ideal partner for organisations looking to leverage eSIM technology at scale.
