How to Choose the Right Module for the IoT eSIM Future

The global demand for AI-integrated IoT products is growing at an unprecedented rate. According to ABI Research, the IoT market is projected to expand from US$277 billion in 2024 to US$606 billion by 2030, with device and application platform services leading this transformation. To stay ahead, manufacturers and Original Equipment Manufacturers (OEMs) must focus on scalable, secure, and future-proof connectivity solutions that support seamless global operations. 

Cellular connectivity, particularly with eSIM and Remote SIM Provisioning (RSP) technologies, has become a key enabler of IoT deployments, ensuring security, flexibility, and efficient fleet management. 

The Strategic Shift to Cellular for AI and IoT 

Increasingly, IoT and AI-driven applications require robust, standards-based security and reliable global connectivity. The shift toward cellular connectivity is driven by its ability to: 

• Enhance security and compliance with international standards.
• Provide a stable, long-term solution with established networks.
• Enable interoperability across multiple markets. 

Industry research from Counterpoint highlights that 5G and LTE-M/NB-IoT adoption is accelerating, meeting the growing need for real-time data processing in AI-driven applications. Cellular connectivity provides low-latency, high-reliability environments, which are critical for AI decision-making at the edge. 

How IoT eSIMs are Transforming Global Connectivity 

The introduction of the GSMA SGP.32 standard is significantly simplifying eSIM adoption for IoT applications. The standard allows for: 

• More flexible and scalable remote profile management.
• Seamless connectivity across different network providers.
• Reduced complexity in global IoT deployments. 

Interoperability with GSMA-compliant solutions ensures that IoT device manufacturers can integrate connectivity with minimal friction, accelerating time-to-market and improving operational efficiency. Early adopters of SGP.32-compatible eSIM management solutions report substantial improvements in device lifecycle management and cost reduction. 

Omdia reports that IoT deployments leveraging standardized eSIM solutions experience 40% lower operational costs compared to traditional SIM approaches. Choosing a future-ready module helps manufacturers optimize for long-term connectivity resilience. 

The industry is moving quickly to reap the benefits of the new standard for IoT eSIMs, and eyes are on what developments and milestones need to be met before the first certified products. The journey will start with device makers and enterprises adopting the new IoT-standard specific features and certifying the new architectural elements defined in SGP.32—namely, the eIM and then the eUICC. 

Kigen has certified the world’s first SGP.32-compliant eIM solution and the first-ever GSMA SAS-SM certified data center. This milestone ensures that OEMs can access industry-leading, secure, and scalable connectivity solutions with multiple pathways that ease design. 

Simplifying the certification journey for device makers 

The new IoT eSIM standard introduces simplified components—eIM (eSIM Integrated Module) and IPA (IoT Profile Agent). The IPA can reside either within the eUICC or directly on the device. For network- or power-constrained IoT devices, embedding IPA in the eUICC is ideal, enabling efficient operation and IoT-specific optimizations. 

In contrast, devices requiring advanced protocol handling and stronger security layers—such as consumer laptops—can utilize IPAd, located in the device’s rich OS. The good news? Device makers can adopt IPAe, an eUICC-integrated agent certified with GSMA eIM, simplifying deployment and ensuring compliance. 

As IoT adoption accelerates, reducing complexity in product certification is crucial for faster market entry. To address this challenge, Kigen collaborates with leading cellular IoT module vendors to enhance interoperability, streamline security compliance, and support scalable deployments.

Through these industry partnerships, certified IoT modules offer key advantages: 

• Seamless compatibility with diverse connectivity ecosystems
• Adherence to stringent security and industry compliance requirements
• Support for remote updates and flexible lifecycle management

Ensuring interoperability across different eSIM management layers is essential for scaling IoT deployments and collaboration with module providers—including Murata, Neoway, Nordic Semiconductor, Sequans, and SIMCom—ensures the availability of extensively tested, secure, and interoperable solutions. These efforts enable manufacturers to deploy IoT solutions with confidence in performance, security, and long-term reliability.

Achieving Faster Time-to-Market with Scalable IoT Solutions 

Companies leading in eSIM remote management and fleet automation offer solutions that unify M2M and IoT eSIM device estates, reducing development friction and enhancing operational control. Key benefits include: 

• Optimized power consumption and bandwidth management.
• Seamless integration with global connectivity platforms.
• Accelerated deployment through embedded software SDKs. 

By selecting proven, scalable eSIM and RSP solutions, OEMs can improve cost efficiency and streamline operations, ensuring adaptability in a rapidly evolving regulatory landscape. 

 The Role of SKU Management in Production Efficiency 

Choosing the right IoT module has a direct impact on SKU management, production efficiency, and regulatory adaptability. Leading IoT players are increasingly relying on RSP-capable modules to: 

• Reduce complexity by consolidating hardware SKUs across multiple markets.
• Improve manufacturing efficiency and logistics operations.
• Adapt dynamically to changing global regulatory requirements. 

According to Kaleido Intelligence, OEMs leveraging eSIM-based IoT deployments see a 60% improvement in SKU management efficiencies, demonstrating the tangible benefits of standardization in large-scale IoT deployments. 

Choosing your module for the path forward to the IoT eSIM future 

As AI and IoT ecosystems evolve, making informed decisions about connectivity solutions is crucial for ensuring scalability, security, and operational efficiency. Key factors for choosing the right module include: 

1. Cellular connectivity for secure, scalable global deployment.
2. GSMA SGP.32-compatible eSIM solutions for simplified connectivity management.
3. Interoperable modules for seamless integration.
4. Strategic partnerships with industry leaders in fleet management and automation. 

Manufacturers who prioritize interoperable, secure, and standards-compliant eSIM solutions will be well-positioned to succeed in an increasingly complex IoT landscape. By leveraging best-in-class remote SIM provisioning and IoT automation, companies can optimize development and future-proof their AI and IoT products.