What Is an eSIM?

Understanding eSIM Technology

eSIM technology represents a major evolution in cellular connectivity for IoT, reshaping how devices are built, deployed, and managed.

Traditional SIM cards, or subscriber identity modules, rely on removable hardware that must be physically inserted, swapped, and maintained. In contrast, an eSIM — or embedded subscriber identity module — is added directly onto the device, delivering greater durability, security, and automation.

This embedded design enables remote provisioning, allowing carrier profiles to be added or updated over the air without manual handling. As IoT deployments scale into the millions, eSIM becomes transformative by simplifying logistics, extending device lifespan, and ensuring reliable, flexible connectivity across diverse environments and global networks.

What Is an eSIM (Embedded SIM)?

eSIM technology transforms how organizations design, deploy, and manage connected devices. With remote provisioning, global multi-carrier flexibility, and rugged embedded components, Digi’s eSIM solutions streamline manufacturing, reduce operational complexity, and support reliable connectivity across diverse IoT applications. Digi eSIM enables OEMs, enterprises, and solution providers to future-proof their devices and scale confidently into new markets.

How Does eSIM Work in IoT Devices?

eSIM technology enables IoT devices to connect to cellular networks using an embedded SIM that can be provisioned remotely. Devices check in with a secure server to download, update, or switch carrier profiles over the air. This allows flexible deployment, simplified logistics, and reliable global connectivity without physical SIM handling. eSIM supports global hardware SKUs that can be activated, configured, and updated anywhere — at the factory or in the field.

IoT eSIM: the Rise of “Massive IoT”

Massive IoT refers to the rapid expansion of connected devices — often millions within a single deployment — spanning sensors, meters, vehicles, and infrastructure across wide geographic areas. Managing connectivity at this scale requires automation, reliability, and cost efficiency that traditional SIM workflows cannot support.

eSIM is a foundational enabler of massive IoT because it allows devices to be provisioned, activated, and updated remotely without physical handling. With remote SIM provisioning, centralized lifecycle management, and multi-carrier flexibility, eSIM technology dramatically reduces the operational burden of deploying large fleets. This makes it possible for organizations to scale rapidly, optimize coverage and cost, and maintain consistent connectivity across diverse and distributed environments.

Benefits of eSIM for IoT

eSIM benefits include significant advantages for IoT deployments, including simplifying how devices are deployed, connected, and managed at scale. Unlike traditional SIM cards, eSIM is embedded directly into the device and can be provisioned or updated remotely, eliminating physical handling and reducing operational effort. This enables organizations to launch global devices with a single SKU, switch carriers seamlessly, and maintain reliable connectivity across diverse environments.

With enhanced security, rugged durability, and support for automated lifecycle management, the advantages of eSIM for IoT devices include the flexibility and efficiency needed to accelerate IoT growth while lowering long-term cost and complexity.

Simplified Global Connectivity and Provisioning

Today, eSIM technology is enabling organizations to streamline global connectivity by allowing devices to be provisioned, activated, and updated remotely without physical SIM handling. A single embedded SIM can host multiple carrier profiles, which means organizations can deploy one device model worldwide. This simplifies logistics, accelerates onboarding, and ensures consistent, flexible connectivity across regions and networks.

Scalable and Flexible Network Management

eSIM technology enables scalable, flexible network management by allowing carrier profiles to be added, updated, or replaced remotely across entire device fleets. Organizations can adjust connectivity based on coverage, cost, or performance without physical access. This centralized, over-the-air control supports rapid scaling, simplifies maintenance, and ensures consistent, optimized connectivity for large, distributed IoT deployments.

Enhanced Security and Device Integrity

Using a tamper-resistant embedded secure element that protects cryptographic keys and network identities, eSIM directly enhances security and device integrity. Because profiles are managed remotely through encrypted, GSMA-compliant processes, devices avoid physical SIM vulnerabilities and unauthorized swaps. This hardware-rooted trust ensures more reliable authentication, safer provisioning, and stronger protection across the entire IoT lifecycle.

Improved Longevity and Reliability

eSIM technology improves device longevity and reliability by eliminating physical SIM trays and contacts that can fail over time, especially in harsh environments. Its embedded, rugged design withstands vibration, moisture, and temperature extremes, while remote provisioning ensures devices stay connected even as networks evolve. This combination reduces field failures, minimizes maintenance, and supports long-term, uninterrupted operation.

Cost Efficiency and Operational Simplification

Every organization deploying connected technologies today must drive efficiency. eSIM delivers cost efficiency and operational simplicity by removing the need for physical SIM handling, truck rolls, and manual carrier swaps.

Remote provisioning and centralized management reduce labor, streamline deployment, and eliminate inventory complexity with a single global SKU. Automated updates and multi-carrier flexibility further lower operational overhead, enabling organizations to scale connectivity more affordably and efficiently.

Key Applications of eSIM in IoT

eSim solutions today are supporting a range of eSIM applications — transforming IoT by enabling reliable, flexible connectivity across a wide range of applications. eSIM’s embedded, remotely programmable design makes it ideal for devices deployed at scale or in hard-to-reach locations.

From smart cities and intelligent transportation systems to utilities, energy, healthcare, asset tracking, and industrial automation, eSIM delivers secure, always-on communication essential for real-time data and remote management. With multi-carrier support and streamlined provisioning, it ensures devices remain connected as networks evolve or coverage varies. This versatility makes eSIM a foundational technology for modern IoT solutions that demand scalability, resilience, and long-term performance.

Smart Cities and Intelligent Infrastructure

eSIM technology plays an important role in connecting smart cities, including smart traffic systems, intelligent lighting, and modern utilities infrastructure, where uninterrupted communication is essential for safety and efficiency.

In dense urban environments with varied coverage, eSIM enables devices to switch seamlessly across multiple carriers, ensuring consistent uptime and performance. Its embedded, tamper-resistant design enhances security for critical public systems, while remote provisioning simplifies deployment across widespread assets. With reliable, flexible, and secure connectivity, eSIM empowers cities to operate smarter, respond faster, and scale infrastructure with confidence.

Industrial and Manufacturing IoT

A range of industrial and manufacturing applications utilize eSIM technology:

• Predictive maintenance systems: Machines and sensors in factories use eSIM connectivity for real-time data transmission to cloud analytics platforms. eSIMs simplify global deployment of identical hardware SKUs across different carrier networks.
• Connected PLCs and gateways: Industrial controllers and edge gateways can automatically connect to local networks during installation, without requiring manual SIM swaps.
• Robotics and AGVs: Autonomous Guided Vehicles (AGVs) and factory robots rely on constant connectivity for coordination and updates — eSIM ensures seamless roaming and minimal downtime.
• Remote asset monitoring Compressors, pumps, turbines and generators in remote areas can be deployed globally with a single hardware design, switching carriers over the air as needed.

Utilities and Energy Management

Modern energy and utilities applications, including smart grids, advanced metering, and renewable energy systems that depend on real-time insight and continuous coordination today are turning to eSIM technology. Its embedded design and remote provisioning make it ideal for distributed assets such as solar inverters, smart meters, and grid sensors that operate in hard-to-reach locations.

With support for multi-carrier connectivity, eSIM ensures uninterrupted data flow, enabling utilities to monitor performance, detect issues early, and optimize energy distribution. This reliable, always-on connectivity strengthens operational resilience and helps energy providers maintain efficient, sustainable networks.

Transportation and Logistics

eSIM technology supports a range of transportation use cases:

• Fleet management: Trucks, ships and railcars equipped with eSIM-based telematics units can automatically connect to the best available local network as they cross borders.
• Logistics and supply chain tracking: Smart pallets, containers, and cold-chain monitors can use eSIM for continuous global connectivity, without the complexity of physical SIM replacement.
• Smart parking and mobility services: Connected meters, EV charging stations and shared mobility assets (scooters, bikes) can be globally provisioned and serviced remotely.

Healthcare and Retail IoT

In use cases involving sensitive data, like healthcare, ATM systems and retail transactions can benefit from the solutions available from eSIM IoT providers like Digi. eSIM technology strengthens secure communication for connected medical devices and retail point-of-sale systems by using a tamper-resistant embedded element that protects credentials and enforces encrypted, compliant data exchange. With remote provisioning and centralized oversight, organizations can monitor connectivity, enforce policies, and maintain reliable, uninterrupted performance — critical for regulated healthcare environments and secure financial transactions.

Environmental and Agricultural Monitoring

Gathering insights on conditions and getting notifications for unusual or out-of-compliance changes is critical in applications like oil and gas and a range of agricultural systems. eSIM enhances environmental and agricultural monitoring by delivering reliable, low-power connectivity to sensors spread across wide or remote areas. Its multi-carrier flexibility maintains consistent data flow for tracking soil conditions, weather patterns, water usage, and ecosystem changes. With remote provisioning and rugged embedded design, eSIM simplifies deployment and ensures long-term, uninterrupted field operation.

eSIM vs Multi-IMSI and Traditional SIM Models

Physical SIMs, multi-IMSI solutions, and eSIM each support cellular connectivity, but they differ significantly in flexibility and management.

• Physical SIMs tie devices to a single carrier and require manual swaps, making them impractical for large or remote IoT deployments.
• Multi-IMSI SIMs offer improved coverage by switching between multiple identities, but carrier control limits visibility, regulatory compliance, and long-term portability.
• eSIM, by contrast, uses a secure embedded element with remote SIM provisioning, enabling enterprises to add, update, or replace profiles over the air. This makes eSIM far more scalable, resilient, and cost-efficient, which is ideal for global IoT fleets requiring long lifecycle management and dynamic connectivity control.

How Digi Enables eSIM Solutions for IoT

Digi is a leader in delivering eSIM-ready IoT connectivity, providing organizations with secure, scalable, and globally flexible solutions built for long-life deployments. Every Digi router includes an SGP.32-compatible eSIM preloaded with a bootstrap profile, enabling instant activation, out-of-box connectivity, and true zero-touch onboarding.

Customers can easily apply their own SIM profiles, enabling remote carrier swaps, lifecycle optimization, and protection against network sunsets. By unifying hardware, device management, and connectivity in a single ecosystem, Digi simplifies deployment, strengthens resilience, and ensures devices remain operable and secure for years. This end-to-end approach makes Digi a trusted partner for modern, future-proof IoT connectivity.

Digi Remote Manager

Digi Remote Manager® (Digi RM) plays a central role in enabling and managing Digi’s eSIM solution by providing cloud-based OTA remote provisioning, configuration, and lifecycle control of eSIM profiles. Through Digi RM, organizations can remotely switch carriers or rate plans by activating or disabling profiles and perform bulk eSIM management across distributed devices — all without physical SIM access. The platform leverages the preloaded bootstrap profile to bring devices online immediately for zero-touch deployment, after which Digi RM handles secure profile downloads, updates, and ongoing connectivity management. This tight integration streamlines operations, reduces truck rolls, and ensures resilient, easily managed cellular connectivity across Digi EX, IX, TX, Connect IT 4 and CORE®-based deployments.

Digi Cellular Router Solutions

Find the right eSIM-supported Digi solution by exploring our portfolio of cellular solutions. Digi provides a wide range of options for industrial, enterprise, transportation, and utilities deployments — each designed for secure, flexible connectivity.

Existing customers can also add eSIM functionality to compatible Digi EX, IX, TX, CORE plug-in LTE modems, and Connect IT 4 devices already deployed in the field, enabling a smooth upgrade path without replacing hardware. This makes it simple to modernize connectivity, extend device lifecycle, and take advantage of remote provisioning and multi-carrier flexibility across new and existing installations.

The Future of eSIM and Massive IoT

The future of eSIM is closely tied to the rapid expansion of massive IoT, where billions of devices will require seamless, intelligent connectivity. Emerging advancements such as iSIM — where the SIM is fully integrated into the chipset — will further reduce device size, cost, and power consumption, enabling ultra-compact sensors and wearables.

As 5G adoption accelerates, especially with 5G RedCap and future low-power standards, eSIM and iSIM will support faster, more responsive networks with global, policy-driven provisioning. Evolving GSMA standards like SGP.32 will continue to enhance interoperability and automation, giving organizations unprecedented flexibility to manage large-scale deployments. Together, these developments will broaden IoT’s reach and unlock new possibilities for connected systems worldwide.