Connectivity providers are under significant pressure to deliver flexible, value-added solutions – such as eSIM, security and remote SIM provisioning – as enterprises scale up their IoT investments, according to a report from Wireless Logic.
Conducted by Kaleido Intelligence, the study included a global sample of 1,000 cellular IoT adopters and non-adopters across various industry sectors.
Findings show that 59.3% of cellular IoT adopters say that more than half of their device fleet requires international or multi-regional connectivity.
Across cellular IoT adopters and non-adopters, 41% cite restrictions on permanent roaming as one of their top five challenges when scaling IoT, while 42% say the same about maintaining commercial relationships with multiple connectivity providers.
A third (32.9%) of all respondents find current global connectivity support inadequate for their needs.
“Enterprises scaling IoT globally can’t afford to rely on connectivity alone – they need partners that can help them navigate the complexities of today’s fragmented connectivity landscape,” said Iain Davidson, senior product manager at Wireless Logic.
“Our research clearly shows that enterprises are looking for a holistic approach that adds value at every stage of their global deployments,” said Davidson.
The research also indicates that enterprises are increasingly seeking support services and feature-rich solutions to tackle IoT’s complexities.
The top technical reason for choosing a connectivity provider was quality of coverage, cited by 55% of enterprises with IoT deployments.
For non-technical or commercial factors, flexibility in setup led the way at 53%, closely followed by a portfolio of value-added services (52 percent) and customer support levels (48%).
Similar expectations exist among enterprises without current cellular IoT deployments, with customer support (50.5%), flexibility (49.5%) and value-added services (42.5%) among their top priorities.
Permanent roaming restrictions have become a key factor influencing eSIM adoption. Almost a third (32%) of current cellular IoT adopters report over-the-air capabilities to optimise network choice, such as through eSIM or multi-IMSI, influenced their choice of IoT connectivity provider.
This is especially important in the energy and utilities sectors, with 42% considering it a guiding factor. Additionally, 45% of organisations across all industries say that avoiding permanent roaming restrictions and operator lock-in were reasons for choosing eSIM, following security (50%) and long-term cost reduction (47%).
eSIM provides businesses with greater flexibility by enabling in-life network switching, allowing a single SIM type to be used in all devices regardless of their destination. This reduces stock keeping unit (SKU) management complexities and is particularly advantageous for sectors like energy and utilities, with over half (55) recognising it as a factor in adopting eSIM.
However, despite these benefits, many enterprises remain cautious about eSIM, often seeking a wraparound service that extends beyond technical connectivity.
Finally, the report also highlighted key security concerns among organisations, revealing a strong demand for enhanced security features from IoT connectivity providers, as enterprises seek to better protect their connected environments.
Among respondents, 89% reported that the threats of cybersecurity breaches, or issues related to compliance as a result of cybersecurity issues, represent a pain point for their organisation.
Findings also show that 88% of all respondents expect connectivity providers to offer tools for monitoring device traffic.
Of those surveyed, 48% of all respondents say the security of devices and environments is among the top five challenges when scaling up cellular IoT connectivity deployments.
Close to half (47%) of current cellular IoT adopters expect network threat detection and mitigation services from their connectivity providers.
Among current cellular IoT adopters, 45% hope for device-to-cloud integration and authentication, making these the second and fourth most selected value-added services.