IoT Glossary
IoT, or the Internet of Things, is an umbrella term for networks that connect physical objects like appliances, vehicles, sensors, and machines with each other using the Internet, providing them with the tools to communicate. IoT is used to create networks that vary greatly in size and purpose, from heating solutions for single-family homes to nationwide grids of electric vehicle charging stations. Connectivity technologies like embedded SIMs (eSIMs) can make IoT connectivity easier, facilitating a global explosion in IoT use. With estimates of over 25 billion IoT devices now in operation, most people likely interact with dozens of IoT systems daily.
The central function of these networks is to automate tasks that otherwise must be performed by hand, such as adjusting the lighting in a room or remotely monitoring the status of machinery. IoT is especially useful in an industry context, where machine-to-machine (M2M) communication can radically simplify complicated manual data entry and transfer processes, saving businesses man-hours and reducing the likelihood of faults. IoT technology has become central to digital transformation, as by connecting objects with each other, it allows organizations to focus on adding value.
How Does IoT Work?
IoT devices fall into three categories:
- Sensors: devices that record data, like heat cameras or remotes
- Actuators: devices that act on data, like doors or alarms
- Multitaskers, devices that are able to both sense and actuate, like refrigerators and watches.
IoT devices can be connected through a range of ways, all of which provide users with a unique experience.
Cellular methods are generally the fastest, cheapest, and most secure options for IoT networks within coverage areas. However, physical SIM cards are typically tied to specific regions, which presents a problem as IoT devices are often deployed in different countries from their manufacturing. SIM cards can also have compatibility issues and are vulnerable to theft, user installation errors, or damage.
How is IoT Connectivity Different From Traditional Internet Connectivity?
IoT connectivity is different from traditional connectivity as physical objects that are on an IoT network aren’t connected to a public network, like smartphones or computers are when connecting to the internet. Rather, they operate on specialized, private communications networks. This is because most IoT devices need to be able to securely communicate with other devices on a nationwide or even global scale as cost-effectively as possible.
Regular 4G or 5G networks are human-centric, designed to access the public internet and transmit high volumes of data for human-to-human communication. IoT devices communicate M2M, and therefore require a different type of networking. Technologies such as Narrowband IoT (NB-IoT) and private 5G are usually used as they grant connectivity while prioritizing lifecycle management, remote provisioning, and cost optimization.
What Are The Key IoT Opportunities and Growth Areas?
Demand for enterprise and industrial IoT solutions is rapidly growing, with the CAGR for IoT providers reaching 19.05% between 2024 and 2031. Organizations today recognize the extensive possibilities of IoT for large-scale transformation across diverse sectors such as warehousing and logistics, also known as IIoT (industrial IoT), healthcare, and urban planning.
IoT and eSIM Technology:
How Does It Work?
IoT eSIM (embedded SIM) technology allows devices to securely download and activate mobile network profiles over the air (OTA), rather than having to physically swap out a SIM card to switch profiles. This allows for greater flexibility, as eSIMs can be updated almost instantaneously without any changes to hardware. If an IoT device, like a smart car, then crosses an international border, it instantly switches profile, remaining connected with no additional cost or difficulty for the user. Original Equipment Manufacturers (OEMs) can therefore leverage the eUICC standard by installing eSIMs into their devices so that they have IoT capabilities globally.
Connecting devices with eSIM unlocks the full potential of IIoT, as they provide hassle-free long-range connection at a reasonable price point. This means more reliable, faster, and wider-ranging connectivity across markets, making it an ideal choice across a range of industries. For example, eSIM facilitates the global connectivity of connected healthcare devices and automotives to keep critical technology running and sharing data, no matter where users are. Similarly, in logistics and fleet management, eSIM simplifies global rollouts by eliminating the need for region-specific contracts and facilitates continuous tracking of assets in transit. Across the board, eSIM makes IIoT implementation easier and more seamless.
Benefits of eSIM for IoT
The flexibility and scalability of eSIM technology can offer significant benefits for enterprises looking to implement IoT for several reasons:
With an eSIM, devices are provisioned and can switch between different networks entirely remotely. This removes the logistical challenges and cost incurred by manually swapping SIM cards, as well as being more environmentally sustainable.
What Should Enterprises
Look for in an IoT eSIM Partner?
Enterprises seeking to expand into IoT need solutions that prioritise seamless global connectivity and can adapt to meet their every requirement. As such, their first priority should be receiving international coverage that also meets local regulations, ensuring their ability to deploy devices across borders without any additional work.
Beyond promising worldwide reach, strong eSIM partners will also provide flexibility and control. Flexible commercial models, such as pay-as-you-go, volume-based discounts, or pooled data plans, are beneficial as they align costs with usage and facilitate large-scale deployments. Partners who offer API-driven management platforms also enhance backend control, supporting automation, real-time provisioning, and advanced analytics.
It’s also crucial to look for proven track records. Expertise in telecom and IoT verticals certifies the ability of the eSIM provider to understand and address unique industry challenges, while proven resilience in managing sensitive data and mission-critical operations demonstrates reliability and safety in the partnership.
Scaling IoT Deployments
with eSIM Connectivity
Analysts estimate IoT could unlock $12.6 trillion in economic value by 2030. As the industry grows, many opportunities for organisations to capitalise on future value have emerged, including developing super-apps where users can access a range of IoT miniprograms on the same platform (for smart home or warehouse management), and AI-enabled predictive services.
Telna has vast experience in delivering eSIM-enabled IoT solutions. We’ve worked with organizations to enable seamless IoT connectivity across a range of verticals, from retail to automotives to cybersecurity. Find out more about our IoT work here.
Related Glossary Terms
- What is an eSIM?
- What is a connectivity management platform?
- What is a CSP?
FAQs About IoT
A wide range of devices, from tractors to credit cards, can become part of an IoT network. Currently, the most common IoT devices include smart home goods (such as speakers, televisions, heating systems, and refrigerators), vehicles, tracking devices, industrial robots, and sensors.
Smartphones typically use cellular and Wi-Fi methods to access the public Internet, make calls, and send messages, accessing and exchanging a very large volume of information daily, and so requiring a significant amount of data and power. Most IoT devices have a narrower scope of tasks to perform and access private, specialized networks to keep data secure while also optimizing cost and power usage.