Why enterprises are choosing eSIM for simple and flexible global IoT connectivity

As the number of connected devices rises from around 700 million today1 to an estimated ten billion by 2030, it’s clear that the pace of evolution in cellular connections is poised to accelerate radically. Current IoT connectivity is composed of 2G, 3G and 4G cellular networks and low power wide area networks (LPWANs). This base will be added to by newer technologies that enable devices to connect without needing their own power supplies.

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ABI Research Report – Tomorrow’s Smart Connected Products Require Smarter Connectivity Services Today

At the end of 2020, 6.6 billion Internet of Things (IoT) devices will be connected and active worldwide; 840 million of them will use cellular networks, which is just under 8% of the total. At the end of 2014, there were 180 million cellular IoT devices active worldwide, and that number increased by over 4.5X in the 6 intervening years. In another 6 years’ time, we will witness a further near-7X growth in cellular IoT devices, bringing the global total to 5.7 billion. More smart devices are being deployed, and more types of device are becoming smart.

All IoT applications are variations of either asset tracking (i.e., “where is something?”) or condition-based monitoring (i.e., “how is something?”), in combination with use case-specific characteristics that distinguish them as markets in their own right. Applications can be thematically grouped by similarity and significance into: metering, tracking/location, smart home, monitoring, smart cities, and a long-tail selection of “others.” Monitoring has consistently accounted for between a third and a quarter of all cellular IoT connections, strongly driven by automotive applications that include: Original Equipment Manufacturer (OEM) telematics, aftermarket telematics, and fleet management. Yet, this stalwart will account for less than 10% by 2026.

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Smart Transportation

Transport and logistics were one of the earliest use cases for cellular connected devices and in many countries, remain the largest application areas. Suppliers initially targeted the market with IoT solutions focused on high-value assets, such as containers and the heavy good vehicles that carried them, where the return on investment was easily demonstrable. The next stage of the market will be to move beyond simply tracking the location and state of the vehicles, to closer monitoring of the assets themselves, writes Tom Rebbeck, the research director of enterprise and IoT at Analysys Mason.

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Smart Agriculture

Global demand for agricultural products is on the rise. By applying advanced technologies in agricultural production, farmers are able to measure and manage the variability of crops in the fields and animals within the herds. Connected equipment, sensors and controllers are being deployed across farms worldwide to increase yield in order to meet the growing demand for food driven by population growth and urbanisation. According to analyst firm Berg Insight’s latest research in the space, the agricultural sector is significantly underpenetrated by IoT technologies but set to experience a wave of technology adoption, writes Fredrik Stålbrand, a senior analyst at Berg Insight.

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