Blog

Unlocking the Future of IoT with SGP.32

IoT
Unlocking IoT with SGP.32 - aerial view of a fleet of buses in a parking lot
Updated:
8 min read

Share:

As 2026 gets underway, the telco landscape has already shifted decisively. The GSMA's SGP.32 spec, once the roadmap to revolutionizing the future of connectivity, has matured into the definitive operational standard for IoT. It addressed the crucial market challenges that had historically stifled innovation, now providing a streamlined, secure, and scalable approach for managing IoT eSIMs. This quickly proved essential for the exploding population of network, power and interface-constrained devices that now dominate global digital infrastructure. 

In this article we’re taking a look at the state of progress in eSIM standards, examining the tangible benefits that SGP.32 has delivered for key IoT use cases, considering what the most important new features have proven to be, and giving some useful insights into how businesses can leverage these advantages today. 

The eSIM bottleneck in Retrospective 

With their technological and commercial benefits, and the speed with which the technology continues to change the market, it’s easy to assume that embedded SIMs (eSIM) have long since become the universal default connectivity option for all IoT traffic. 

By the start of 2026, the industry has evidently crossed a significant threshold, yet the transition remains a work in progress. Industrial Internet of Things (IIOT) research indicates that while eSIM adoption is accelerating, it’s far from default across many of the legacy verticals. 

The Market in Numbers: 2025 Actuals and 2026 Forecasts

2025 proved to be a pivotal turning point for the eSIM market, marking a recovery from the plateau observed in 2023 and 2024. ABI Research’s eSIM in Consumer and IOT Markets Report put shipments of eSIM-enabled devices at approximately 140 million for IoT and 403 million for consumer devices in 2025.  
 
This acceleration was largely driven by the smartphone sector, which accounted for 74% of total eSIM-enabled device shipments that year, but the IoT sector had already begun to gain significant ground as SGP.32 pilot programs solidified into commercial reality.    

Looking ahead, the momentum continues. In the same report, total eSIM-enabled device shipments are forecast to exceed 633 million by mid 2026. This growth is fueled not only by the maturation of SGP.32 itself, but also by significant regulatory and market shifts in key regions. This is a classic delay between technological reality and the regulatory authorities catching up, particularly so in China where the long-awaited approval of eSIM for domestic smartphone use and the deployment of SGP.32 for IoT have now opened up a massive market.    

The essential advantage that eSIM tech offers the IoT industry is its capability for remote SIM provisioning (RSP). This capability allows devices to update their network profiles over the air (OTA), eliminating the need for physical SIM swaps, a logistical impossibility for devices set in concrete, moving through international supply chains, or tucked into the digestive tract of livestock.  

However, prior to the widespread availability of SGP.32, adoption had been hindered by challenges including complex integrational dependencies and the number of stakeholders and cooperating parties required to run any one project.  

To address these issues, the GSMA introduced the SGP.32 spec. Designed to simplify the IoT eSIM framework for both manufacturers and users, it replaced the complexities of required pre-integrations with interoperability and open use, thus paving the way for wider eSIM adoption.  

The Evolution of GSMA Standards for eSIM

 To understand the magnitude of the shift to SGP.32, one must first understand the architecture that preceded it. There are currently three primary eSIM options provided by the GSMA for IoT professionals, each built to answer growing specificity in use cases, deployment plans, and network architecture. 

SGP.02: Legacy M2M 

First released in 2016, the .02 spec was designed to meet the acceleration in fully machine-to-machine (M2M) IoT networks, where devices might go through their whole operational lifecycle without a human interacting with it.  

It remains the default industrial IoT standard for legacy deployments, with robust simplicity its chief strength. However, it became increasingly limited under demands for more sophisticated features, particularly those of low-power, long-lifecycle technologies. 

SGP.02 also relied on a Subscription Manager-Secure Routing (SM-SR) server to manage the connection, which meant that swapping profiles between cellular contracts required a complex integration between the old SM-SR and the new provider’s system. In practice, many IoT fleet owners were disinclined to face the fuss and expense, leading to vendor lock-in that was essentially just a digital version of the exact same issues that physical SIMs originally had. 

SGP.02 also needed SMS to triggering profile downloads. In the modern era of Low-Power Wide-Area Networks (LP-WAN) like NB-IoT, SMS is often not supported or is prohibitively power-hungry, rendering SGP.02 incompatible with millions of long-lifecycle sensors. 

SGP.22: Consumer Standard 

Introduced a year later, this standard was made for eSIMs in consumer devices that expected to see a lot more human interaction and novel features, such as smartphones, wearables, PoS devices, etc. 

As such, it is set up to make remote provisioning as simple for network operators and smartphone users as possible. 

It relied on a Local Profile Assistant (LPA), in-device software that allows the user to select a network provider via the UI in a ‘pull’ model. While highly successful for smartphones, driving 403 million consumer shipments in 2025 according to ABI, SGP.22 was fundamentally unsuited for most IoT applications. An industrial water meter or a shipping container tracker has no screen, no user to tap "download," and often no constant power source to maintain the complex HTTPS sessions required by the consumer spec. 

SGP.32: The Standard for 2026 

The most recent eSIM spec, SGP.32 was first introduced in 2023 with its technical details and ecosystem maturing throughout 2024 and 2025 .  

As of January 2026, SGP.32 has moved comfortably beyond the pilot phase into mass commercial deployment. It is now the go-to for IoT deployment, particularly those leveraging LTE Cat-1 bis and 5G RedCap tech, which are seeing massive growth across the market. The spec combines the simplified backend of the consumer model with a new frontend designed for autonomous fleets.    

Why is SGP.32 needed? Market drivers in 2026

 As the IoT ecosystem grows to encompass new verticals and use-cases, there are an increasing number of IoT devices deployed that have limited bandwidth (network constrained), limited or no User Interface (UI constrained), and limited power (power constrained). 

In particular, network constrained and UI constrained devices across the IoT ecosystem present significant challenges as they cannot be optimally managed using the existing GSMA Consumer and M2M Specifications. 

Devices utilizing Narrowband IoT (NB-IoT) or LTE-M are designed to wake up, squeak out a tiny packet of data, and go back to sleep for weeks. They operate on batteries that are now expected to see devices last 10 to 15 years. The legacy M2M spec required an SMS or HTTPS connection for profile downloads and management, but NB-IoT networks don’t typically support either. SGP.32 addresses this by supporting Constrained Application Protocol (CoAP) over User Datagram Protocol (UDP), which significantly reduces data and power demands.    

Additionally, most modern IoT design prizes autonomy as much as longevity, avoiding screens or buttons as much as possible. Consumer SGP.22 relies on user interaction to ‘pull’ a profile download, which is not a popular feature on a smart meter embedded in a blast furnace. 

Integration Complexity and vendor lock-in 
A challenge associated with the M2M Specification is that it requires a complex two-way integration processes between service providers and the different operators (as secure links must be established between the SM-SR and SM-DP), which makes it difficult to switch profiles between providers. 

While this model is highly resilient and works for verticals such as automotive, where long-term contracts are standard, it’s unsuited for multiple IoT use-cases that demand flexibility.  

The Consumer Spec offers a more streamlined and scalable approach, lifting the previous version's constraints on integration and network access, and eliminating the need for pre-established links between the device and the SM-DP+. SGP.32 adopted this consumer-style backend model, allowing enterprises to switch providers without the fuss and friction. 

Permanent Roaming Not an Option 

By the end of 20256, the option of ‘permanent roaming’ had become all but extinct under Widespread regulatory pressure. Countries including Brazil, Turkey, India, and China have strict regulations prohibiting indefinite stay for foreign SIM profiles. To operate globally, IoT fleets need local profiles, a localization that SGP.32 can facilitate dynamically, allowing a device to swap its profile based on its geolocation without prohibitive integration costs. 

The most cost-effective features of SGP.32 
The GSMA developed the new eSIM specifications to tackle known, real world connectivity issues. At its core, the role of SGP.31/32 was to transition from rigid integrations to interoperable use-of-service, eliminating the over-dependency between industry players. 

Industry experts have characterized SGP.32 as an evolution of the consumer specification, incorporating proven elements and adding features specifically designed for large-scale IoT deployments. 

There’s a long list of all the features  direct from the GSMA, but two were of particular commercial significance: The eSIM IoT Manager and IoT Profile Assistant. 

eSIM IoT Manager (eIM) 

The eSIM IoT Manager (eIM) is essentially a command and coordination hub between systems managing network identities, such as the Device Management Platform, eSIM profile storage SM-DP+, and the IoT eSIM itself. 

  • Autonomous Operation 
    eIM skips the need for human prompting from the consumer model. It’s a standardized software stack, usually cloud hosted, that manages the entire fleet's eSIM, issuing commands to download, enable, disable, or delete profiles. 

  • Protocol Independence 
    Unlike the SM-SR, the eIM communicates using IP-based protocols (HTTPS or CoAP), making it network-agnostic. 

  • Enterprise Control 
    The eIM can be administered directly by the enterprise, which gives fleet managers granular control over connectivity rules, such as ‘when device type A enters Region B then connect via Profile C’ without needing to ticket their providers. 

  • Zero Touch Provisioning 
     The eIM enables zero touch deployment, where devices can be shipped with a generic bootstrap profile which as soon as they boot up will have their eIM download the optimum local profile.    

IoT Profile Assistant (IPA) 

The IoT Profile Assistant (IPA) enables transport layer between the eSIM and server-side platforms. It resides on the device and acts as the proxy between the eIM and the eUICC’s physical eSIM hardware, executing the commands sent out by the eIM. Manufacturers can choose to embed the IPA directly on the eSIM (IPAe) for out-of-the-box functionality, or run it on the device (IPAd, confusingly) for greater control. The IPAe allows for much simpler devices to utilize SGP.32 without needing their own power-hungry processors. 

Unlocking IoT with SGP.32 - graphic showing bright yellow lines of connectivity

SGP.32 IoT use cases: Transforming Industries in 2026

 The rollout of SGP.32 unlocked a raft of new operational models across multiple industrial sectors. By Q1 20026, it’s increasingly common to see these use-cases moving from testing to full-scale commercial deployment. 

Transport & logistics 

Via the eIM, the deployment and remote management of large fleets of IoT devices has been made possible across new regions and networks. A logistics operator deploying asset trackers in shipping containers across multiple routes can flexibly connect to different network providers across jurisdictions.  

SGP.32 has empowered logisticians to automate profile swapping at each border, avoiding permanent roaming restrictions, maintaining access to local data rates, and ensuring real-time visibility without the dreaded ‘dark zones’ caused by roaming prohibitions. 

Automotive 

Flexibility to choose service provider, reliability and resiliency and fallback / rollback mechanisms has allowed connectivity even in emergency situations. An automotive manufacturer can access a wider number of connectivity options with less bilateral integration efforts compared to deployments using the M2M Specification.  

The close integration of 5G with SGP.32 is powering a complete reframing of how people use and interact with their vehicles, as part of the V2X Connected Car revolution.   

Smart metering 

SGP.32 network constrained capabilities mean devices like electricity and water meters can now use CoAP /User Datagram Protocol (UDP) between themselves and the eIM. Utilities providers deploying smart meters across offshore windfarms can ensure connectivity over the full device lifespan.  

Such devices, often utilizing NB-IoT, can operate on batteries for 15+ years, while SGP.32 allows them to be re-provisioned remotely as and when that becomes cost-effective. For any kind of digital device to continuously maintain and upgrade its competitiveness more than a decade after its deployment has been an absolute game-changer.  

Smart Cities 

The new spec reuses all the secure communications defined in the Consumer Specification, plus new protocols to secure the communication between the eIM and IPA/eUICC in terms of integrity, authenticity, and confidentiality. A municipality deploying IoT sensors for critical infrastructure such as a traffic management system can ensure that data is not compromised.  

With data sovereignty laws like Europe’s GDPR and China’s PIPL strictly enforcing where municipal data is routed and processed, SGP.32 allows civil controllers to localize data traffic dynamically, ensuring compliance. 

Device manufacture 

Streamlined device production and accelerated time-to-market with options such as the eUICC being provided without eSIM profile for maximum deployment flexibility, to be later added in the field. The manufacturer doesn't have to select operators during production, removing the need for multiple production lines. 

An OEM making digital devices for worldwide markets can now leverage far more cost-effective ‘single SKU’ production and inventory management strategies. Rather than being individually outfitted for each target market, devices are now shipped with a single generic bootstrap profile, and upon arrival in a destination they’ll boot up and download the best local profile. 

Energy 

Enhanced operational efficiency through wireless connectivity in challenging terrains. A network of physical objects integrated with remote sensors, surveillance systems, machine learning, and cloud connectivity is deployed across all operational stages, including devices in difficult areas such as oil fields. 

For reasons of environmental safety and residential property values, energy production tends to happen in remote places, where SGP.32 will automatically keep devices on the strongest available network. If a primary network suffers an outage, the eIM triggers a fallback to a secondary provider, ensuring continuous monitoring of critical safety infrastructure. 

Healthcare

 SGP.32 ensures the seamless connectivity, if needed, for instant feedback and timely intervention. Provides real-time data, enabling timely interventions and improved patient outcomes, alleviating the strain on healthcare practitioners and facilities. 

Along with automotive safety, healthcare is a market where connectivity failure is frequently not an option. For remote patient monitoring devices such as cardiac monitors, SGP.32 allows for multiple redundant profiles to be pre-loaded, ensuring immediate failover and high reliability for critical health data. 

SGP.32 security: The 2026 Standard  

Leading up to the widespread apportion of SGP.32, multiple surveys of IoT professionals and OEMs corroborated that the biggest obstacle to wider IoT eSIM adoption were concerns about security.  

As IoT networks grew in scale and sophistication, this did the concerns, since every device connected to an IoT network represents a possible cyberattack entry point. 

This is what’s known as the ‘perception layer’ of an IoT ecosystem, and it’s a surface that is indeed highly vulnerable. This could come in the form or device spoofing, signal jamming, node capturing or just good old-fashioned physical tampering with intent to steal data, install malware, wholesale device theft or even complete system takeover. 

The best IoT devices are often very good at their job by being very simple, which doesn’t leave a lot of spare processing power and memory for running sophisticated security or anti-intrusion features like firewalls or encryption. 

The SGP.32 spec represented as a significant security upgrade for a diverse range of IoT ecosystems, aligning with incoming regulations such as the EU Cyber Resilience Act which has since come into force and is now impacting deployments in 2026. 

With greater capacity for RSP and profile management, manufacturers have more reasons than ever to leverage eSIM tech, which mitigates the risks inherent to physical SIM cards. 

SGP.32 Security Features 

  • Cryptographic Authentication 
    SGP.32 include cryptographic authentication processes to ensure only genuinely authorized users, via the eIM, can manage device profiles. 

  • Secure Tunneling 
    The spec requires a Datagram Transport Layer Security (DTLS) for transport of commands between the eIM and the device, which means end-to-end encryption even over connection-less protocols like UDP. 

  • Access Control 
    This establishes a secure link between the eSIM IoT Remote Manager and the eUICC within the IoT device itself, effectively preventing unauthorized access even if someone physically gets hold of the hardware. 

SGP.32 & Resurgent eSIM adoption 

It’s been solidly established that all IoT use-cases benefit from the agility and adaptability of eSIM technology. Some features are arguably more sector specific, such as the roaming benefits that favor travel and logistics use-cases. Most of the other features, such as enhanced security, are of clear advantage to all industries. 

Regardless, eSIM adoption in IoT has levelled out after a meteoritic start, with the rate of new adoption plateauing over the last two years prior to 2025. This was widely attributed to the sectors that could easily adopt the tech having by then done so, and the remaining markets being either unconvinced or simply not served by the previous GSMA protocols.  

With the introduction of SGP.32, industry-wide adoption started to progressively pick up again throughout 2025 in what analysts have described as a ‘global realignment’ in connectivity.   

IoT Analytics’ Global Cellular IoT Module and Chipset Market Tracker & Forecast reported a 23% year-on-year growth in the cellular IoT module market through 2025, driven by the resolution of chip inventory issues and the availability of SGP.32-ready modules.    

SGP.32’s advanced features have required significant strategy review, testing, integration, and compliance by manufacturers and operators before they were usefully deployed, a payoff that’s now being seen across the markets. 

Leveraging  SGP.32 with 1GLOBAL 

As SGP.32 continues to accelerate IoT eSIM tech, deliver enhanced flexibility, scalability, and energy efficiency for deployments worldwide, the full potential of its features will continue to be demonstrated over time. 1GLOBAL's cutting-edge IoT eSIM solutions fully leverage all these advancements.  

Your business can immediately gain all the benefits of dynamic network switching, regulatory compliance, and uninterrupted connectivity. 

1GLOBAL IoT technology reliably connects your fleet, while having the agility and scalability to innovate and ramp up to whatever and wherever the next industry paradigm takes you.  

Global scope 

1GLOBAL offers the world’s only truly global IoT network, eliminating the inefficiencies and unpredictability of regional solutions, plus: 

Streamlined global service 
Unified under a single contract, delivering economies of scale and simplified management. 

Predictable costs 
Shared, dynamic plans reduce spend volatility and eliminate bill shock. 

Improved productivity 
Seamless connectivity empowers even the most mobile fleets to communicate effortlessly, regardless of location. 

Enhanced control 
A centralized platform provides simplified management, data provision and cost- awareness across all regions.  

The bright future of IoT with SGP.32 is no longer a distant concept, but now a market reality that needs to be kept up with. The bottleneck has been uncorked, the standards are ratified, and the tech is deployed. For enterprises looking to scale their IoT fleets globally, securely, and efficiently, the time to adopt SGP.32 was ideally yesterday but now is still an option.  

With 1GLOBAL as your partner, you can navigate this transition with confidence, ensuring your devices remain connected, compliant, and cost-optimized, no matter where in the world they operate. 

Contact us today.

About 1GLOBAL

1GLOBAL is a distinguished international provider of specialty telecommunications services catering to Global Enterprises, Financial Institutions, IoT, Mobile Operators and Tech & Travel companies. 1GLOBAL is an eSIM pioneer, a fully accredited and GSMA-certified telco, a full MVNO in ten countries, fully regulated in 42 countries, and covers 190+ countries.

It delivers comprehensive communication solutions that encompass Voice, Data & SMS - all supported by a unique global core network. Its constantly expanding portfolio of advanced products and services includes White Label eSIMs, Connectivity Solutions, Compliance and Recording, Consumer & M2M SIM Provisioning and an Entitlement Server.

Author Details
Portrait

1GLOBAL is a trading name of 1GLOBAL Holdings B.V.