The transition from SIM to eSIM is reshaping global connectivity by enabling remote provisioning, reducing hardware constraints and unlocking new business models, positioning operators and enterprises to lead or lag in a rapidly digitizing ecosystem

As the digital economy accelerates, the shift from traditional SIM cards to embedded SIMs (eSIMs) is redefining the telecommunications and connected device landscape. This transition is not just a matter of technical evolution; it's a strategic move that empowers device manufacturers, telecom providers and enterprises with greater flexibility, efficiency and user-centric design.

“We're moving into a fully digital world,” says Olivier Poulain, Senior Technical Architect and eSIM expert at HCLTech. “There’s no longer a need to manage a physical SIM supply chain, no more storing, shipping, or handling cards. All of that goes away.”

A decade of progress

The foundations for eSIM were laid in the early 2010s, when the GSMA began tackling the limitations of physical SIMs, especially for the machine-to-machine (M2M) market. Physical cards presented logistical and technical challenges, particularly for enterprises managing large fleets of connected devices.

“There were real limitations with physical SIMs,” recalls Poulain. “Enterprises struggled with hardware integration and the lack of flexibility in switching providers. In some cases, they had to recall connected devices, like cars or smart meters, just to replace a SIM.”

The initial focus was on industrial use cases, but as the technology matured, the industry began extending eSIM standards to the consumer market.

Benefits beyond the hardware

At its core, eSIM enables more integrated hardware design by eliminating the physical SIM slot. This allows for sleeker, more compact devices, particularly valuable in space-constrained or rugged environments.

“All manufacturers, whether they're in consumer or industrial markets, are looking to save space,” says Poulain. “Embedding the SIM directly into the device enables tighter integration and better design flexibility.”

But eSIM’s advantages extend far beyond hardware. One of its most transformative features is the ability to switch service providers remotely. No physical swap is required.

“For enterprises, this means no more sending engineers into the field to replace SIM cards,” explains Poulain. “Service changes can happen remotely, over the air, which is a huge efficiency gain.”

Expanding adoption, emerging challenges

eSIM adoption has grown rapidly over the past several years. What began with premium smartphones is now expanding into mid-range and even entry-level devices. However, Poulain cautions that the transition won’t happen overnight.

“Each year, more device makers are adopting eSIM,” he says. “We started with high-end models, but now we’re seeing the technology move down the value chain.”

Still, the shift presents cultural and operational challenges. For mobile operators, backend systems had to be reconfigured to support digital SIM provisioning at scale. And for consumers, learning to manage eSIM profiles across devices introduced new behaviors.

“Operators had to overhaul their business processes,” notes Poulain. “You can’t introduce eSIMs at the same pace or in the same way as physical SIMs. And consumers needed to understand how to transfer a profile from one device to another, which is a completely different experience from swapping a physical card.”

Platform certification and regulatory compliance, such as GSMA’s SGP.24 requirements, also introduced new layers of complexity.

Opening doors to new markets

One of the most exciting outcomes of the eSIM revolution is the way it enables new business models and ecosystems. Travel, logistics, retail and other industries are beginning to tap into eSIM to create frictionless connectivity for their customers.

“In the past, when you traveled internationally, you had to find a local SIM at the airport or a retail shop,” says Poulain. “Now, you can download a local eSIM profile as soon as you land, or even beforehand.”

This convenience is spawning new commercial partnerships. Airlines offer data packages during the ticketing process. Car rental companies bundle connectivity with vehicle handovers. Even airports are beginning to promote eSIM-enabled options on their websites.

“Industries that were never part of mobile communications are now using eSIM to grow their customer relationships,” adds Poulain.

Powering the IoT and private networks

Beyond consumer devices, eSIM is becoming a critical enabler for large-scale IoT deployment, both on public and private networks. Recognizing this, the GSMA has launched new initiatives to develop standards tailored to IoT eSIM adoption.

“We realized that if we really wanted eSIM to scale in the IoT space, we needed simpler, more flexible implementations,” says Poulain. “That’s especially true as private cellular networks become more common and more diverse devices come online.”

From smart meters to connected vehicles, the ability to remotely manage connectivity at scale is becoming essential and eSIM is at the heart of this capability.

HCLTech’s role in the eSIM ecosystem

To support this growing demand, HCLTech has built a comprehensive portfolio of eSIM solutions, strengthened through its acquisition of CTG Telecom Group. The company provides an end-to-end software stack for SIM management and remote provisioning, available across on-premises, hosted or hyperscaler environments.

“We help carriers and service providers deploy, manage and scale their eSIM platforms,” explains Poulain. “They get full control and can align their operations with market demand.”

In addition, HCLTech supports customers through its deep cloud and cybersecurity practices, ensuring secure, compliant and auditable deployments in line with industry standards.

As a complement to its core platform, HCLTech also offers the deck platform, a proven entitlement server used by carriers worldwide.

“Our deck platform automates key eSIM workflows,” says Poulain. “That includes transferring from a physical SIM to an eSIM, or moving a profile between two eSIM devices. It’s designed to help operators streamline and scale.”

A strategic imperative

The transition from SIM to eSIM is not merely an upgrade, it’s a transformation of how connectivity is delivered and experienced. For communications service providers (CSPs) and enterprises, the question is no longer if but how and how quickly, they will act.

“The eSIM is an ongoing revolution,” concludes Poulain. “Operators and CSPs need to decide: do they want to be a follower, or a leader in this transition?”