Embedded SIM Technology Drives Digital Transformation in India

Mayank Sharma – July 31, 2024

Collected at: https://www.iotforall.com/embedded-sim-technology-drives-digital-transformation-in-india

India is committed to digital transformation. The nation’s digital economy is growing by nearly 3% per year, and should reach a value of $1 trillion by 2027-28.

That’s no accident. Since the Digital India program kicked off in 2015, public and private stakeholders have been charging full speed into a digital future.

Successful digitization is key to the success of other national initiatives, such as the 2014 Make in India manufacturing program. It’s also the best way to respond to contemporary Indian challenges, from high populations to a yawning digital divide to rising temperatures.

However, to unlock the promises of digital transformation, many of India’s emerging industries depend on a single factor: secure connectivity.

The Basics of SIM Technology

The world’s most populous nation has mobile networks to connect massive IoT deployments. The limiting factor, until recently, has been the SIM card.

A subscriber identification module—or SIM—is the chip that connects your device to the cellular network. Traditional SIMs are removable, and you often need a different SIM for each MNO relationship.

Traditional SIMs lock you into a single MNO relationship—or, at best, trigger costly roaming charges.
Because they’re removable, SIMs are vulnerable to physical attack.
SIM form factors are relatively large, limiting hardware design options.
Traditional SIMs cause inventory-management headaches due to SKU proliferation.

Embedded SIMs—also known as multi-profile SIMs, industrial SIMs, or simply eSIMs—solve all these problems and more. Here’s how embedded SIM technology is knocking down the few remaining barriers to India’s complete digital transformation.

“India’s digital economy is poised to reach new heights, presenting a fertile ground for integrating advanced technologies like eSIM.”

— Papiya Raipal, Country Director, VP, Kigen, India

Understanding the Embedded SIM

An embedded SIM also connects devices to networks, but it’s not removable; it’s an integral part of the device’s IoT module. The big advantage of the eSIM, however, is that it supports Remote SIM Provisioning, or RSP.

With RSP, devices can hop from one cellular network to the next without swapping a chip. That’s why eSIMs are also called multi-profile SIMs.

Over-the-air profile management allows vendors to take care of devices without physical access. All this remote system access future-proofs any IoT fleet, providing the flexibility to adapt to changing network environments throughout the device lifespan.

Why India Needs Embedded SIM Technology

The eSIM market is growing all over the globe, with a projected total value of $16.3 billion by 2027 (compared to less than $5 billion in 2023). What makes this technology particularly valuable for digital transformation in India?

Factors Driving eSIM Adoption

A unique combination of assets, challenges, and ambitions makes India ripe for eSIM adoption. Consider the following factors unique to this nation:

The national Make in India movement, which seeks to draw manufacturers to the nation, can only succeed if infrastructure supports Industry 4.0 capabilities like automation, interoperability, and cloud-based IT. Embedded SIMs make such technologies more efficient and affordable.
A digital divide stands between India’s rural and urban populations. As of 2022, nearly 70% of urban residents used the Internet; in rural areas, that figure was only 31%. Cellular customer premise equipment (CPE) can help bring connectivity to the countryside, and it will spread much further with eSIM.
India is a unique IoT market in that it has three major MNOs capable of supporting multi-profile SIMs. The infrastructure is ready, making it less costly and more convenient to deploy eSIMs nationwide.
India’s high population leads to huge IoT deployments for consumer products. Manufacturers need to control inventory with such high numbers; multiple SKUs for a single product can send costs ballooning out of control. With an embedded SIM, you can use the same chip for devices no matter where they’re deployed, cutting down on SKU proliferation to greatly simplify inventory management.
India is bearing the worst of a heating planet, with temperatures in Delhi reaching over 50 degrees Celsius (122 degrees Fahrenheit) in May 2024. Extreme temperatures place a serious strain on energy and water systems. Smart metering can help utility companies wisely manage these resources—which is why India has committed to a nationwide rollout of smart meters, all connected by NB-IoT networks accessed via eSIM.
The nation is divided into 22 telecom circles, with each area covered by different providers and regulatory frameworks. Any device that travels between telecom circles must be able to load new profiles to maintain connectivity (or connect to a backup network). Only a multi-profile SIM can accomplish this task, which is why eSIM is crucial for mobile IoT in India.

Importance of eSim for Digital and Industrial Growth

“[We believe] a more robust Indian eSIM ecosystem is essential to realize the Make in India drive toward intelligent, resilient, and world-leading digital products…”

— Mayank Sharma, Regional VP of Solutions at Kigen

These conditions make India ripe for eSIM adoption and digital transformation. But there are also more targeted use cases that make industrial SIMs ideal for India’s businesses and consumers.

4 Key Use Cases for Embedded SIMs in India’s Digital Journey

India is poised to be a world leader in eSIM adoption for at least one common device: the smartphone. By 2027, experts expect India to represent 14% of the world’s eSIM-smartphone use. That will be more than any other nation in the world.

Benefits of Multi-Profile SIMs

The benefits of multi-profile SIMs extend well beyond the smartphone, too. Here are four more IoT technologies that stand to gain from eSIM technology in India:

IoT Vehicle Tracking and Management Solutions. India’s Automotive Industry Standard 140 requires commercial vehicles to use tracking devices and other advanced technologies. Embedded SIMs make telematics and tracking technologies flexible, cost-efficient, and future-proof.
Smartwatches and Other Consumer Wearables. Professionals in India have shown a preference for cellular smartwatches—but to reach the broadest possible public, wearables must keep prices low. Energy-efficient eSIM technologies help to keep down costs (and extend device battery life) for the fast-growing consumer wearable market.
Customer Premise Equipment (CPE). As we mentioned, CPE is crucial for delivering connectivity to every corner of India. The security, power, and size advantages of embedded SIMs make them ideal for this hardware class.
Smart Metering. Smart meters can help Indian utility companies manage resources carefully, reducing waste and enabling dynamic load balancing. Future-proof smart meters require remote updates, a key feature of eSIM technology.

Key Considerations for Reliable and Secure eSIM Adoption

India’s ambitious digital transformation goals can only succeed if devices can connect to networks reliably and affordably. Cellular connectivity—backed by future-proof embedded SIMs—is an important piece of this puzzle.

Another piece is the ability to build with certified chipsets, leveraging a wider set of components that are suited for low-power technologies such as NB-IoT. The truth is that these industrial IoT devices are different from the wide-ranging capable application processors we may see in smartphones or connected TVs.

To access the leading choices among semiconductor chipsets and modules, choose an eSIM provider that specializes in the IoT market tailored for India, with a “think global, ship local” mentality that adapts the world’s strongest IoT technologies for specific regional needs.

It’s also important to find an eSIM provider with the GSMA’s Security Accreditation Scheme (SAS). This accreditation is legally required by India’s Know Your Customer regulations. In other words, you can’t operate without it.

However, SAS accreditation is also expensive and time-consuming. Achieving and maintaining SAS is one of the key hurdles for India’s home-grown manufacturers. The simplest way to comply with IoT security regulations is to work with an eSIM partner that already carries SAS credentials—ideally across both consumer and industrial IoT.

“This approach is best suited to meet local/regional requirements worldwide and enables us to build win-win partnerships with lasting sustainable value for all our vendors and ultimately, the end consumer,” said Sharma. That’s true everywhere—especially in the rapidly digitizing India.