A decade ago, cellular connectivity was often an afterthought in product development. Hardware teams once treated connectivity as a final deployment step, choosing a carrier late in the design process, using region-specific SIM cards, and considering the work complete once the device successfully connected to the network.
That approach is quickly becoming outdated.
Today’s connected products from industrial sensors and medical devices to smart wearables and fleet trackers are expected to work wherever customers deploy them. Businesses no longer want separate hardware variants for different markets, lengthy carrier negotiations, or manual SIM replacements. They want connected products that can be activated remotely, adapt to changing network conditions, and scale globally without adding operational complexity.
This shift is changing how OEMs think about connectivity. Instead of treating it as a procurement exercise, leading manufacturers are designing connectivity as part of the product experience itself.
The timing couldn’t be more important. According to GSMA, eSIM adoption continues to accelerate across both consumer and enterprise devices, while IoT connections worldwide are expected to exceed 40.8 billion by 2030, according to IoT Analytics. At the same time, the industry is moving toward newer remote SIM provisioning standards such as SGP.32, making it easier to manage millions of connected devices throughout their lifecycle.
For OEMs, these trends represent more than a technology upgrade. They present an opportunity to simplify manufacturing, reduce supply chain complexity, launch products in new markets faster, and create recurring revenue through connectivity-enabled services.
The challenge, however, isn’t simply choosing an eSIM.
It’s designing a connectivity strategy that continues to work long after the product leaves the factory.
What eSIM Means for OEMs: From Hardware Feature to Business Strategy
For years, connectivity lived in the background of product development.
Engineering teams focused on device performance. Operations teams negotiated carrier contracts. Connectivity itself was often treated as another component on the bill of materials important, but rarely strategic.
Today’s connected products demand a different approach.
Customers expect devices to work immediately, regardless of where they’re deployed. Whether it’s a wearable purchased online, an industrial gateway installed across multiple countries, or a fleet tracker crossing international borders, users expect seamless connectivity without worrying about SIM cards or carrier compatibility.
That expectation has elevated connectivity from a hardware decision to a product decision.
Instead of asking:
“Which carrier should we integrate?”
Forward-looking OEMs are asking:
“How can we make connectivity seamless for customers while maintaining the flexibility our business needs?”
Embedded eSIM technology helps answer that question.
Unlike traditional removable SIM cards, an embedded eSIM allows carrier profiles to be downloaded and updated remotely. Rather than manufacturing different hardware variants for every region or operator, OEMs can produce a single device and provision the appropriate network after deployment.
The operational benefits extend far beyond engineering.
According to industry estimates, global eSIM-capable device shipments are expected to exceed nine billion units by 2030, driven by smartphones, connected vehicles, industrial IoT, and wearables. As adoption grows, manufacturers that continue relying on region-specific connectivity strategies risk adding unnecessary complexity to their operations.
Every additional regional hardware SKU introduces new certification requirements, inventory planning challenges, procurement overhead, and logistics costs. A well-designed global connectivity strategy helps minimize these operational burdens by reducing hardware variation, simplifying fleet management, and making expansion into new markets faster and more efficient.
The business opportunity is equally compelling.
Instead of selling hardware once and ending the customer relationship, OEMs are increasingly bundling devices with recurring connectivity subscriptions, remote diagnostics, software updates, fleet management platforms, and premium digital services.
Connectivity is becoming part of the product’s long-term value, not just its initial functionality.
That shift is why connectivity discussions are moving earlier in the product lifecycle, often alongside hardware architecture and software planning rather than during procurement.
The organizations realizing the greatest value from eSIM technology are not simply replacing plastic SIM cards. They are rethinking how connectivity is deployed, managed, and monetized across the entire product lifecycle, from manufacturing and deployment to ongoing operations and customer experience.
eSIM vs. eUICC for OEMs: What’s the Difference?
Few terms in the connectivity industry are used as interchangeably—and as incorrectly—as eSIM and eUICC. While they are closely related, they refer to different layers of the connectivity stack, and understanding that distinction can save OEMs from costly design decisions later.
Simply put, an eSIM is the physical SIM chip embedded into a device during manufacturing. An eUICC (Embedded Universal Integrated Circuit Card) is the software capability that enables that chip to securely download, store, and switch between multiple carrier profiles over the air.
eSIM vs. eUICC
| Feature | eSIM | eUICC |
|---|---|---|
| Refers To | Physical embedded SIM hardware | Software capability that enables remote SIM management |
| Purpose | Embedded SIM chip installed in the device | Enables remote SIM provisioning and profile management |
| Removable | No (typically MFF2) | Can exist on embedded or removable SIMs |
| Supports Remote Provisioning | Only when the SIM includes eUICC capabilities | Yes |
| Primary Impact | Hardware design | Connectivity lifecycle management |
For OEMs, the distinction isn’t just technical, it shapes long-term connectivity strategy. If devices are expected to operate across multiple countries, switch carriers after deployment, or be managed remotely at scale, eUICC functionality becomes essential.
Think of the eSIM as the hardware and eUICC as the intelligence that enables remote profile management and flexible connectivity. Together, they make it possible to provision, switch, and manage carrier profiles over the air throughout a device’s lifecycle.
Choosing the Right eSIM Form Factor (BOM Impact)
Selecting the right eSIM form factor isn’t simply about minimizing board space, it’s about balancing manufacturing efficiency, product durability, lifecycle requirements, and total bill of materials (BOM).
The right choice depends on how and where your product will operate. A rugged industrial gateway has different design priorities than a wearable, a medical device, or a consumer electronics product.
eSIM Form Factors
| Form Factor | Best For | Advantages | Considerations |
|---|---|---|---|
| 2FF / 3FF / 4FF | Consumer devices | Easy replacement and broad compatibility | Requires a SIM tray |
| MFF2 | Industrial IoT and automotive | Durable, soldered, with a mature ecosystem | Not user replaceable |
| MFF4 | Compact wearables | Smaller footprint than MFF2 | Emerging ecosystem and device adoption |
| iSIM | Ultra-compact devices | Integrated directly into the chipset, reducing size and power consumption | Ecosystem and operator support are still maturing |
| SoftSIM | Specialized deployments | No dedicated SIM hardware required | Limited operator support and availability |
For most enterprise and industrial deployments today, MFF2 remains the preferred option because it combines proven reliability with broad ecosystem support. While iSIM is attracting attention for its smaller footprint, many OEMs continue to prioritize manufacturing maturity and certification readiness over adopting the latest technology.
Choosing the smallest SIM form factor is not always the best long-term decision. The right choice is the one that minimizes operational complexity, supports your product roadmap, and provides the flexibility your devices will need throughout their lifecycle. Selecting the appropriate form factor today can reduce future hardware redesigns, simplify connectivity management, and make carrier changes easier as your deployment evolves.
One Global SKU and In-Factory Profile Provisioning
One of the biggest operational advantages of embedded connectivity has little to do with the SIM itself.
It has to do with manufacturing.
Historically, expanding into new countries often meant producing separate hardware variants for different carriers or regions. Each SKU introduced additional certifications, inventory planning, procurement complexity, packaging variations, and logistics overhead.
That model becomes increasingly difficult to manage as products scale globally.
eSIM changes this equation by allowing OEMs to manufacture one global hardware SKU and determine the network profile later, either during production or after deployment.
Instead of building hardware around a specific carrier, manufacturers build hardware that can adapt.
This is where In-Factory Profile Provisioning (IFPP) becomes particularly valuable.
Rather than inserting carrier-specific SIM cards manually, manufacturers can preload connectivity profiles during production while maintaining the flexibility to update or replace those profiles remotely throughout the device’s operational life.
The outcome is a more flexible and efficient supply chain.
Products can be manufactured in larger volumes, shipped internationally with fewer regional variations, and activated using the most appropriate network when they reach their destination.
Activation UX and Attach Rate: Why the First Five Minutes Matter
The success of a connected product isn’t determined when it leaves the factory, it’s determined when a customer turns it on for the first time.
A complicated activation process can create friction before users experience the value of the product. Every additional setup step, QR code, registration form, or manual configuration increases the likelihood of customer drop-off.
That’s why leading OEMs are treating activation as a core part of the product experience rather than a technical afterthought.
One example is Angel Watch, which integrates connectivity directly into its smartwatch onboarding process. Instead of requiring customers to purchase a separate mobile plan after buying the device, activation happens as part of the setup journey.
The result? Approximately 80% of customers purchase connectivity alongside the device, demonstrating how a seamless onboarding experience can significantly improve attach rates.
Connectivity as Revenue: Lessons from the Angel Watch Case
For many OEMs, connectivity has traditionally been viewed as a necessary operating expense.
That perspective is changing.
Instead of treating cellular connectivity as a cost center, companies are increasingly using it to create recurring revenue through bundled subscriptions, premium digital services, remote diagnostics, and ongoing device management.
Angel Watch illustrates this shift well. By embedding connectivity directly into the purchase and onboarding experience, the company transformed connectivity from an optional add-on into an integrated part of the product offering. The reported 80% connectivity attach rate highlights how reducing friction can directly influence recurring subscription revenue.
This strategy extends beyond wearables. Industrial equipment, healthcare devices, smart home products, and fleet solutions can all benefit from connectivity that’s built into the customer experience from day one.
For OEMs, the takeaway is clear: connectivity isn’t just about keeping devices online, it’s an opportunity to strengthen customer relationships long after the initial hardware sale.
Single Carrier or Multi-Carrier? Choosing the Right Connectivity Strategy
One of the first commercial decisions OEMs face is selecting a carrier strategy.
At first glance, partnering with a single mobile operator may seem simpler. Pricing negotiations involve one provider, operational processes are easier to manage, and technical integrations are often less complex.
For products deployed within a single country, that approach can work well.
Global deployments introduce new challenges.
Coverage varies by geography. Roaming agreements differ between operators. Commercial terms change over time. A network that performs well in one region may offer limited coverage or higher costs elsewhere.
This is why many OEMs are moving toward multi-carrier connectivity strategies.
Rather than depending on a single operator, they design products that can support multiple carrier relationships throughout the device lifecycle.
This approach improves resilience while reducing dependency on any individual network provider.
It also creates greater commercial flexibility.
If pricing changes, regulations evolve, or coverage requirements shift, OEMs can adapt without redesigning hardware.
Platforms such as Spenza further simplify this model by providing access to multiple operator relationships through a unified management platform. Instead of managing separate portals, invoices, and provisioning workflows for each carrier, businesses gain centralized visibility across their connectivity estate while maintaining operator flexibility.
Conclusion
Connectivity is no longer a feature that’s added after a product is built.
Increasingly, it’s becoming one of the foundations on which connected products are designed.
As eSIM technology matures, remote provisioning standards evolve, and global deployments become the norm, OEMs have an opportunity to rethink how connectivity fits into their business. The organizations that will benefit most won’t simply be the first to adopt embedded SIMs, they’ll be the ones that build flexible connectivity strategies capable of adapting over the entire lifecycle of a product.
That means looking beyond hardware specifications and asking broader questions:
Can connectivity scale with the business?
Can products enter new markets without redesign?
Can operators change without replacing devices?
Can connectivity become part of the customer experience instead of an operational burden?
Answering those questions early can have a lasting impact on manufacturing efficiency, customer satisfaction, and long-term revenue.
The future of connected products isn’t defined by the networks they use.
It’s defined by how easily those networks can evolve.
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