eSIM deployments for cellular IoT: A complete guide

The hardware eSIM, along with eUICC software, is changing the way organizations approach device deployments. Rather than a removable component, the eSIM is embedded in the device and the eUICC allows network operators to send SIM profiles over the air (OTA) without needing physical access to the device. Manufacturers and IoT providers are making big claims about the efficacy of eSIM and its myriad possibilities for IoT. But practically, what does an IoT deployment with eSIM look like? The answer starts with the benefits eSIM brings to IoT deployments.

Recommended reading: eUICC: What it is and how it works

Key takeaways

• eUICC lets devices get carrier profiles over the air after deployment, so they can ship without a known final destination.
• SGP.32, GSMA's IoT eSIM spec, adds an eSIM IoT Remote Manager (eIM) and IoT Profile Assistant (IPA), replacing SGP.02's routing server and SMS-based triggering.
• Orchestration applies rules for coverage, cost, and failover to trigger profile switches in bulk across large fleets.
• Local profiles help devices stay connected in markets that restrict permanent roaming, such as Brazil.
• The main adoption challenges are an early SGP.32 ecosystem, interoperability, and migration from SGP.02, and each has a practical mitigation.
• Plan your deployment in 3 steps: refine your eSIM approach, weigh hardware and provider options, and deploy and manage devices in the field.

What are the advantages of eSIM for IoT?

The key advantages of eSIM for IoT include remote over-the-air provisioning, better scalability without physical SIM swaps, increased device flexibility with support for low-power LTE-M and NB-IoT designs, and a streamlined supply chain that eliminates sourcing bottlenecks.

Remote (OTA) provisioning flow

The ability to send devices into the field first and provision them with the needed SIM profile later is one of the biggest advantages of eUICC-enabled eSIMs. When you don't know where your devices will end up, provisioning them prior to deployment becomes tricky.

Connected cars illustrate this well. When a vehicle rolls off the assembly line, it's difficult to predict whether it will ship across the state or around the globe. OTA provisioning eliminates that manufacturing bottleneck.

Better scalability

With eUICC-enabled eSIMs, companies can scale their IoT projects more easily because they no longer have to plan for SIM card trade-outs, which can be costly. Every device contains the same hardware and software combination, yet it's adaptable to the network environment where it ends up operating.

More flexibility

eSIM delivers flexibility advantages over traditional SIMs:

• Low-power operation: Low power comes from LTE-M and NB-IoT sleep modes such as power saving mode (PSM) and extended discontinuous reception (eDRX), not the eSIM. GSMA's Energy Efficiency for Mobile IoT paper notes that battery life depends on message size, reporting interval, and application design.
• Compact form factor: ETSI defines MFF2 as a soldered, non-removable part about 6 × 5 mm. Dropping the tray and socket means one less mechanical connector on the board.
• Environmental grade: For outdoor, underground, or underwater deployments, choose an industrial-grade part with extended environmental classes. ETSI lists these classes as optional, so check each datasheet.

Streamlined supply chain

Using eSIMs can greatly simplify your supply chain. Sourcing and incorporating traditional SIMs is a physical step in the process that can be eliminated with the addition of eUICC-enabled eSIMs. Because you can send out the needed SIM profile to the devices after they're deployed, your global supply chain can flow without interruption.

Recommended reading: What is an eSIM and how is it used?

What is SGP.32 and how does eSIM orchestration work?

The GSMA SGP.32 specification (https://www.gsma.com/solutions-and-impact/technologies/esim/wp-content/uploads/2024/06/SGP.32-v1.2.pdf) defines how to remotely provision and manage eUICCs in IoT devices with constrained networks or no user interface. GSMA published v1.0 in May 2023 and has since issued updated versions, including v1.2 (June 2024). For a deeper walkthrough, see our SGP.32 implementation guide.

The GSMA SGP.32 specification reuses the Subscription Manager Data Preparation (SM-DP+) server from GSMA's consumer standard, SGP.22, and adds the eIM and IPA. The SM-DP+ prepares and stores carrier profiles. The eIM acts for the fleet owner and sends profile commands to devices.

The IPA receives those commands and handles the download from the SM-DP+. It runs either in the device (IPAd) or in the eUICC itself (IPAe). GSMA's companion requirements document, SGP.31, specifies that the eIM can trigger the IPA to start a profile download from the SM-DP+.

SGP.32 builds on two earlier GSMA standards. The table below compares all three, drawing on GSMA's SGP.02 v4.3 specification for machine-to-machine (M2M) devices and SGP.22 v2.7 specification for consumer devices. SGP.02 uses the Subscription Manager Secure Routing (SM-SR) server.

The fit column below reflects analyst views. IoT Analytics wrote that SGP.02's multiple functional entities increase deployment complexity and operational overhead.

How eSIM orchestration works across large fleets

A standard defines how one profile switch happens. Orchestration decides when and where switches happen across thousands of devices.

An orchestration layer sets rules for coverage, cost, and failover. When a rule fires, it triggers profile downloads and switches in bulk, through the eIM on SGP.32 devices or through carrier APIs. Our guide to eSIM orchestration for IoT covers the model in depth.

Hologram Conductor, now in early access, gives IoT teams policy-based control over profile switching, network routing, and automated provisioning at fleet scale. It supports rules-based failover, API-triggered profile switches, and bulk recovery from a single control surface. Hyper SIMs come in both SGP.02 and SGP.32 variants, and Hologram has completed tens of millions of eSIM operations to date.

Examples of IoT enterprise deployment with eSIM/eUICC

To see these benefits in action, let's take a closer look at what IoT deployments with eUICC-enabled eSIMs might look like with Hologram in a couple of different use cases.

Deployment in smart agriculture

Smart agriculture deployments have a unique set of challenges. In our example, the smart agriculture company needs to connect thousands of devices in regions around the world with widely varied network availability. These devices are deployed, in some cases, many miles from the nearest cellular tower and need to be distributed on a large scale to enable the best quality data collection. They also need to withstand all kinds of weather events and temperatures, from rain and snow to heat and humidity.

The company also manufactures the devices in a single batch, without knowing where they will ship. After deployment, teams sometimes pull devices from the field and move them to new regions. To make the best use of the hardware, the devices must be easy to reconfigure.

For this smart agriculture deployment, eSIM meets the challenges. The process unfolds in clear phases:

• Manufacturing: eSIMs ship to the manufacturing partner and are incorporated into sensor devices
• Assembly and QA: Manufacturers install eSIMs, activate sensors in test mode, verify connectivity via local carriers, and hibernate SIMs for shipment
• Monitoring: Project leaders track the testing process (from the Dashboard for Hologram customers

Once sensors reach farms around the world, project managers use OTA provisioning with eUICC to customize carrier and network access based on local availability. A single profile can access multiple carriers in a network. With Hologram, that access continuously expands as new carriers and networks are added.

eSIM also supports ongoing operational needs:

• Rebalancing: When sensors move between locations due to growing seasons, project managers remotely provision new profiles to match network requirements
• Firmware updates: OTA delivery keeps devices improving over time
• Durability: Sealed eSIM hardware withstands extreme weather and temperatures common in agriculture

Deployment in mobility

Similar to the smart agriculture deployment, devices installed in micromobility vehicles (e-bikes and scooters) need to be provisioned after they are manufactured as they will be deployed in different urban areas around the world. eSIM provides a flexible solution, allowing managers to deploy carrier settings and firmware updates OTA once the vehicles are in place.

Later, if some vehicles need to be transferred from one fleet to another urban area, the onboard devices can be reconfigured with new settings to match their location and available carrier networks. The flexibility and durability of eUICC-enabled eSIMs make them a great fit for micromobility applications.

Deployment in fleet management

Fleet management is another strong use case for eUICC-enabled eSIM. A global trucking company deploying telematics across multiple continents can manufacture all devices simultaneously, then provision them after installation in specific locations. Vehicles that later move to different areas can be remotely updated and reset without physical access.

Global roaming and eSIM: what changes for IoT

Devices that cross borders, like the trucks above, often start out on roaming connectivity. Roaming works well in many markets, but some countries limit how long a device can roam.

Permanent roaming limits

BEREC, the body of European telecom regulators, notes that IoT providers use local profiles in countries where permanent M2M roaming is not allowed or restricted. BEREC published that report in December 2024 and doesn't name specific countries.

According to Cullen International research from January 2025, Brazil's regulator ANATEL has banned permanent roaming. Rules differ by country and change over time, so check each market before you ship.

Local profile options

eUICC gives you a clear path in these markets. A device can download an in-country profile over the air and run on a local carrier instead of roaming indefinitely. Compliance still depends on local rules and operator terms, so confirm the requirements for each market with your provider.

When profile switching beats multi-IMSI

A multi-IMSI SIM switches between international mobile subscriber identities (IMSIs) within one profile, which suits roaming-friendly markets. Learn more about how multi-IMSI works.

eUICC profile switching replaces the whole profile, which suits markets that need local profiles and devices with long lifecycles. The two approaches can work together in the same fleet.

How eUICC remote provisioning works

The advantages above explain why OTA provisioning matters. Here's what happens at each step in SGP.02 and SGP.32 deployments:

1. The module or device maker builds in the eUICC with a bootstrap profile already loaded.
2. The device ships and uses the bootstrap profile for initial connectivity.
3. The operator (SGP.02) or the eIM (SGP.32) orders a target profile from the profile server, the SM-DP in SGP.02 or the SM-DP+ in SGP.32.
4. The profile downloads securely to the eUICC, through the SM-SR in SGP.02 or the IPA in SGP.32.
5. The eUICC switches to the new profile, and the device attaches to the network.
6. Later switches repeat steps 3 to 5 over the air, with no physical access to the device.

SGP.02 commonly uses SMS as the default transport, with other transports allowed. For IoT eSIM, GSMA's SGP.31 v1.2 requirements call for provisioning to remain possible where SMS isn't available.

3 steps in eSIM deployment

Now that you've seen how eSIM works in real-world scenarios, let's consider how your enterprise eSIM deployment might unfold.

Step 1: Refine your eSIM approach

First, it's important to evaluate your goals and the needs of the specific use case. For example, consider these variables:

• Will you need to access and remove SIMs, or will they be embedded in the device?
• What is the total expected lifespan of your devices? Will they be deployed outdoors and/or in adverse temperature and weather conditions?
• Will the devices be static (deployed in one place for their entire lifecycle) or mobile (moving from place to place on a connected vehicle, for example)?

Taking the time to answer these questions and build an eSIM strategy that matches your needs will help you future-proof your connected devices against network and location changes and ensure that the technology you choose will last throughout the devices' lifecycle.

Step 2: Consider eSIM variables

Once you've defined the needs of your use case, you can look more closely at your options and determine which approach and provider work best for you. No matter what, you'll want to choose an eSIM that's designed for IoT applications and includes OTA programming that follows current GSMA standards, such as the GSMA SGP.32 specification for IoT. Beyond those basics, here are some options to consider:

• Ruggedized eSIMs: Essential for outdoor deployments or adverse conditions
• Long-lasting eSIMs: For deployments spanning a decade or more, make sure the hardware is durable
• Standard support: Ask whether modules and SIMs support SGP.32, SGP.02, or both
• Carrier-agnostic provider: Hologram lets you switch networks globally without time-consuming negotiations
• Multi-technology access: Support for 2G, 3G, 4G LTE, and LPWAN options like Cat-M1, Cat-1, and NB-IoT

Step 3: Deploy and manage your devices with eSIM

Once you've matched your use case needs with the right eSIM hardware and service options, move forward with production. Before deploying, confirm compliance with government and carrier regulations and ask your providers about their compliance policies. After launch, gather feedback from managers and users to refine your approach.

With a carrier-agnostic provider like Hologram, you'll retain the ability to manage devices in the field and receive instant alerts when a problem is detected. For example, if a device loses connectivity, appears outside its expected geographical boundaries, or experiences hardware or software glitches. When you use Hologram Hyper SIMs, our eUICC SIM platform, you can easily download new carriers and SIM profiles to your devices, optimizing coverage and costs even after your devices are in the field.

Challenges of eSIM for IoT adoption

The remaining hurdles for eSIM for IoT are practical, and each one has a workaround. In a September 2025 analysis, Transforma Insights wrote that the SGP.32 standard is now effectively here. Transforma Insights also cautions that SGP.32 is not a magic wand on its own.

Module and eUICC support

SGP.32 support is still arriving across modules and eUICCs, so not every part on your shortlist will have it. Ask vendors which standards each module and SIM supports before you lock in hardware. SIMs available in both SGP.02 and SGP.32 variants keep your options open.

Carrier profile availability

A profile switch only helps if a carrier in the target market offers a profile your eUICC can download. Availability depends on carrier agreements and varies by market. A carrier-agnostic provider widens your options, and Hologram's coverage spans 550+ carriers in 190+ countries.

Migration from SGP.02

Existing SGP.02 devices may not all follow the same path to SGP.32. Ask your module and SIM vendors whether a firmware update can add an IPA to the device (IPAd) for your hardware. Teams can plan for mixed fleets during a transition, with existing devices on SGP.02 and new devices on SGP.32.

Cost

Cost depends on hardware, provider, and how often you switch profiles, so no single benchmark fits every fleet. Model total lifecycle cost, including eUICC-capable hardware, profile operations, and integration work. Weigh that against the SIM swaps and field visits that OTA provisioning avoids.

Market outlook

Demand is building. Juniper Research forecast in January 2026 that connected logistics, oil and gas, and smart street lighting will be the fastest-growing IoT eSIM sectors in 2026. Juniper expects those three sectors to add a combined 75 million new eSIM connections in 2026.

Kaleido Intelligence forecast in April 2025 that around 50 million SGP.32-compliant eSIMs will be under management globally by 2027. Kaleido also noted at the time that lock-in and interoperability concerns remained high, which makes open, multi-carrier choices worth prioritizing.