What is an eSIM?
In the IoT industry, “eSIM” has become an umbrella term that gets tossed around to describe several fundamentally different technologies. Buyers often use eSIM interchangeably with eUICC, Soft SIM, MFF2 , iSIM, or Multi-IMSI SIMs, which rotate through pre-programmed carrier profiles via onboard software rather than downloading new ones over the air.
An eSIM is a programmable SIM that allows network profiles to be downloaded, updated and managed remotely. An eSIM can securely store multiple profiles and switch between them without the need to physically replace the SIM.
How does an eSIM work?
An eSIM contains a secure chip, which can store one or more operator profiles. Each profile contains the credentials required to authenticate with a mobile network, including the International Mobile Subscriber Identity (IMSI) and security keys.
When a device is activated, a profile is downloaded securely onto the eSIM. If connectivity requirements change, a different profile can be installed remotely without replacing the hardware. This process is known as Remote SIM Provisioning (RSP).
eSIM versus a traditional SIM
Although both technologies perform the same core function,the way they are managed is fundamentally different.
With a traditional SIM card:
- The network profile is fixed when the SIM is issued.
- Changing network provider usually requires a replacement SIM.
- Managing international deployments often involves maintaining multiple SIM inventories.
- Physical access to the device is required if the SIM needs replacing.
With an eSIM:
- Profiles can be downloaded remotely.
- Network operators can be changed without replacing the SIM.
- Devices can be managed from a central platform.
- Connectivity can evolve alongside business requirements.
Why businesses will adopt eSIM technology?
Devices may move between countries, regulations may change, or organisations may wish to change connectivity providers as commercial requirements evolve. An eSIM provides the flexibility to respond without replacing hardware already installed in the field.
Some of the key business benefits include:
Simplified deployment
Devices can be manufactured, shipped and installed without knowing which network profile will ultimately be required. The appropriate profile can be downloaded when the device is commissioned.
Improved resilience
Many eSIM solutions support multiple operator profiles, allowing organisations to move between networks where necessary to maintain connectivity.
This is particularly valuable for critical infrastructure, remote assets and business continuity applications.
Reduced operational costs
Removing the need for physical SIM replacement reduces engineering visits, logistics costs and deployment delays.
For organisations managing thousands of devices, these savings can be substantial over the lifetime of an IoT project.
Greater commercial flexibility
Changing connectivity provider has traditionally involved replacing SIM cards across an entire device estate.
With eSIM technology, organisations have greater freedom to adapt as pricing, coverage or operational requirements change.
eSIMs and global IoT deployments
One of the biggest challenges facing international IoT deployments is maintaining reliable connectivity while complying with local regulations. Some countries restrict permanent roaming, requiring devices to use locally issued network identities rather than roaming indefinitely on foreign networks.
An eSIM helps address this challenge by allowing devices to download local operator profiles where required. Instead of relying on a single roaming agreement, businesses can deploy local connectivity that improves performance, supports regulatory compliance and often reduces data costs.
For organisations operating across multiple territories, this creates a far more scalable connectivity strategy.
Are eSIMs replacing physical SIM cards?
Not entirely.
Many industrial routers, gateways and IoT devices continue to include a physical SIM slot, giving organisations the flexibility to install either a traditional SIM or an eSIM-enabled card.
Some manufacturers, including providers of industrial networking equipment, also incorporate an embedded eSIM alongside a physical SIM slot. This allows organisations to benefit from remote provisioning while retaining the option to use a physical SIM where required.
As the industry moves towards GSMA’s SGP.32 standard for IoT Remote SIM Provisioning, embedded eSIM technology is expected to become increasingly common across enterprise devices.
Frequently Asked Questions
What does eSIM stand for?
eSIM stands for embedded SIM. It is a programmable SIM that supports remote management of mobile network profiles.
Can an eSIM use more than one network?
Yes. An eSIM can securely store multiple network profiles, although only one is typically active at any given time. Profiles can be switched remotely when required.
Is an eSIM the same as eUICC?
Not exactly. The eUICC is the secure hardware that enables remote profile management, while the eSIM is the overall technology that uses the eUICC to store and manage operator profiles.
Are eSIMs suitable for IoT devices?
Yes. eSIMs are particularly well suited to IoT deployments where devices are installed remotely or across multiple countries, making physical SIM replacement impractical.
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