SGP.32 to shake-up IoT connectivity

IoT connectivity is about to get a shake-up with the SGP.32 standard and boost new eSO (eSIM Orchestrator) platforms.

Expected to land in H2 2025, SGP.32 isn’t just a small tweak. According to a report by Transforma Insights, it’s going to fundamentally change the roles of traditional Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs).

“Enterprises are navigating a period of significant change in how global device connectivity is delivered and managed,” explains Matt Hatton, Founding Partner at Transforma Insights.

“The new SGP.32 standard provides a powerful tool for remote SIM provisioning. In conjunction with a more demanding regulatory and MNO landscape, our analysis points towards a fundamental shift requiring businesses to be more strategic. This is where we see the emergence of roles like the ‘eSIM Orchestrator’ (eSO) becoming critical.”

The report dives into why this shift is happening, what the new market will look like, and what new eSO platforms will need to do to be useful.

Why IoT connectivity is changing fast

It’s not just one thing causing this upheaval; several trends are coming together to redraw the map for global cellular-based IoT connectivity. The new SGP.32 standard is, of course, a huge part of it.

Unlike the older SGP.02 (for M2M) and SGP.22 (for consumer devices) standards, this new IoT version (SGP.32) is set to offer companies a much smoother way to handle connectivity for their fleets of devices. 

The promise is to be able to remotely tell a device to grab a new SIM profile from any operator. This is where the eSO steps in, tasked with managing these eSIM profiles on devices from afar, using a clever bit of tech called an IoT Profile Assistant (IPA) that’s controlled by an eSIM IoT remote Manager (eIM).

“The imminent arrival of the SGP.32 ‘IoT’ standard for remote SIM provisioning in 2025 promises to trigger a new phase in the provision of IoT connectivity and in the associated roles,” Transforma Insights explains. “Specifically, we expect to see the role of IoT connectivity provider (MNO/MVNO) fragment into three main roles: network operator, reseller, and a new role of eSIM Orchestrator.” 

But SGP.32 isn’t acting alone. MNOs themselves are becoming more protective, putting up what the report calls “guardrails” around how eSIMs can be used. The days of easy, unrestricted access are fading; MNOs now want solid proof of things like device certification, security, and how much network resource a device will use. They’re being very careful about who gets to use their precious eSIM profiles.

Then there’s the growing mountain of regulations demanding that solutions be more local. The old headache of “permanent roaming” – where devices sit on a foreign provider’s network for ages – is facing tighter clamps in places like Brazil, India, Turkey, and China. These countries are often insisting on local SIM profiles or outright banning SIMs controlled from abroad. India, for example, now gives foreign eSIMs just six months to switch to a local profile.

And it’s not just roaming; new rules around cybersecurity, where data is stored (data sovereignty), and even national resilience (think the EU’s NIS2 Directive) are pushing for connectivity and data to be managed within a country’s borders.

All this regulatory heat, combined with the ever present threat of cyberattacks, means businesses are, quite rightly, getting fussier.

“The way businesses manage their connected devices globally is undoubtedly transforming,” comments Ian Marsden, Co-Founder and CTO at Eseye.

“Proactive companies will be looking beyond the immediate technical changes, like SGP.32, to understand the broader operational and strategic implications. Having a clear strategy for device connectivity management, which considers the need for specialised eSIM orchestration and unified control, will be increasingly important to de-risk operations, ensure compliance, and maintain a competitive edge.”

The basic cost of IoT connectivity is also in a race to the bottom, with per-megabyte data rates constantly being squeezed. This is forcing providers to rethink their game. Instead of just reselling data cheaply, many are trying to move towards offering smarter connectivity platforms and extra services. eSIM technology – with its natural fit for local connections – is only speeding this up, making life harder for MVNOs relying on simple resale.

The tech that manages all this, the middleware, is also changing. MNOs are looking beyond single, expensive Connectivity Management Platforms (CMPs) and are now using more affordable, and often multiple, options.

This has created a gap for what Transforma Insights calls “abstraction platforms,” or Single Pane of Glass (SPOG) platforms. These systems can manage connections across lots of different networks and CMPs—something that’s becoming even more vital with eSIMs and the need for local connections.

Finally, just look at the sheer variety of cellular technologies out there now: LTE-M, LTE Cat 1bis, NB-IoT, 5G (both NSA and SA), and even Non-Terrestrial Networks (NTNs) for connecting things via satellite. It’s a bit of a patchwork, and it means choosing the right network isn’t just about finding a roaming signal anymore. It requires a much deeper understanding of what each network can actually do, especially with powerful tech like 5G Standalone.

“IoT connectivity has become a highly curated activity increasingly focused on localisation with careful consideration given to which network technologies are supported, the level of compliance, the commercial attitude of the host operator, and a range of other factors,” Transforma Insights points out.

The new team sheet for IoT connectivity

All these changes are forging a brand-new line-up in the market. Transforma Insights sees several key roles shaping up:

• Mobile network operators: They’ll still be the ones running the mobile networks and selling access. But connections will more often be based directly on their local network rather than just roaming. Expect them to work more closely with each other too.
• Connectivity reseller: The traditional MVNO job of buying data wholesale and selling it on to businesses will become less central as more connections go local. Many will likely shift into an eSO role or find other ways to add value.
• eSIM Orchestrator (eSO): This is the new kid on the block, managing the whole remote SIM setup process (things like the SM-SR, SM-DP+, and eIM). The eSO will look after the SIM profiles, switching them between different operators as needed by the customer—often as part of broader connectivity platforms that might also include CMP, abstraction, and SPOG features.
• Remote SIM provisioning infrastructure provider: This highly specialised job of running the SM-DP+ will probably fall to an eUICC manufacturer (EUM – the folks who make the special SIM chips).
• Global infrastructure provider: Someone needs to provide the overarching global infrastructure to support deployments across multiple countries, including things like local gateways for data and managing data locally.
• Connectivity Abstraction/Single Pane of Glass (SPOG): As more connections get tied to local MNO systems, there’s a growing need for a management layer that can control and give a clear view of all these connections across different networks.
• Connectivity Management Platform (CMP): These platforms remain essential, whether they’re built by MNOs/MVNOs themselves or bought in from a third party. We’re seeing a wider range of approaches here for different needs.

It’s worth remembering that these roles aren’t set in stone, and many companies will likely wear multiple hats.

What to look for when evaluating eSO platforms

Transforma Insights highlights ten key things to look for in an eSO:

1. eSIM profile management: This is the absolute basic—actively handling profile downloads and swaps according to clear rules, including activating services, cancelling them, and getting disconnected SIMs back online.
2. Profile lifecycle management: It’s about using eSIM profiles smartly to get the best balance of cost, network resources, location needs, regulations, and business deals, right through to when a profile is no longer needed.
3. Network capability awareness: An eSO needs to know the ins and outs of all the different MNO networks around the world that it might want to connect to, especially what they can offer in terms of tech like NB-IoT, 5G SA, or NTN. This means working very closely with the operators.
4. Device awareness: It’s also important to know what the device itself can do—is it certified, what kind of network tech can it use, how much battery power does it have? All this helps make smart decisions about which profile to use.
5. Billing simplification: Most companies using eSO platforms will want one bill for everything, covering all the different operators. The eSO should handle checking usage and sorting out payments to give the enterprise one simple, global bill. This means linking up with both operator and enterprise billing (BSS/OSS) systems.
6. Customer support: Hand-in-hand with simple billing comes the need for unified global customer support. Businesses will want a single place to go for any issues, questions, or help they need, wherever their devices are.
7. Trusted relationships with MNOs: As MNOs get more cautious about handing out eSIM profiles, they’ll want to work with partners they really trust to use them responsibly, both technically and commercially.
8. Compliance with eSIM management obligations: The eSO must make sure that profile switching follows all the local rules, like the requirement in Turkey to use a domestic operator, or rules about where data can go.
9. Commercial plans/tariffs management: A big part of the eSO’s job is to manage all the different price plans and services offered by MNOs for their eSIM profiles, helping find the best mix of performance and cost.
10. Comprehensive IoT managed service: Ultimately, most businesses will want all of this delivered as a neat managed service that takes away the hassle and cost of dealing with eSIMs themselves. Very few have the in-house skills or resources to do it all. Even just running the eIM part could cost tens of thousands of dollars.

It’s early days, but the direction is clear for eSO platforms

Transforma Insights is quick to point out that we’re still in the early stages of these big shifts. “SGP.32 has not yet been deployed, the adoption of connectivity abstraction is nascent, and the regulatory environment is still uncertain,” they caution.

Things won’t change overnight. There will still be plenty of variety, and MVNOs that offer real value beyond just basic eSO – perhaps by negotiating great connectivity deals or helping with app development and compliance – will continue to do well. “IoT connectivity will be overwhelmingly delivered as a managed service, and someone has to provide that management layer,” the report states.

Where you are in the world will also matter. Europe’s more open roaming environment is different from the US market, which is more divided and might push resellers to need stronger independent tools for managing connections.

The rise of eSIM orchestration, kicked off by new standards like SGP.32, signals a pretty fundamental change in how we’ll connect IoT devices. There are still challenges and a few unknowns, but the direction is clear: we’re moving towards smarter, more flexible, and rule-abiding global IoT setups, and eSO platforms will be at the centre.

(Photo by Pablo Heimplatz)

See also: Automotive giants team up to sort out vehicle connectivity

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Tags: connectivity, esim, internet of things, iot, platforms, report, research, sgp.32, standards, study