The
automotive industry is progressing from the idea of people buying cars just
once to where automobiles are connected and maintained for their entire
lifetime. Navigation, emergency calling, software updates, diagnosis and in-car
entertainment depend on effective cell access while changing the physical SIM
card from one network and country to another is impossible. The tasks of
embedded SIM management eliminate this challenge because it does not require
the manual change of the network profile.
The market for automotive eSIM management worldwide is estimated to grow to $1.44Bn in 2024 as per the most
recent research outcomes. The growth in the field of automotive digitization and
connectivity greatly enhanced this market development the market is forecasted
to grow at a CAGR of 15.7% during the period from 2025 to 2033.The Dataintelo’s
report on market for automotive eSIM management supports this assumption due to
indicating that the market will be 3.6 times bigger than the value of this
market in 2024 in just nine years.
How the Technology Works
An embedded SIM or eUICC is soldered right to the unit of control
with a telematics system of an automobile, making it unchangeable as is done
with plastic cards. All the operations are conducted with the help of
management platforms, which enable downloading of user profiles, activation,
alteration of the SIM-card, suspending it, or deleting it remotely. The GSMA
SGP.32 standard widely applied in connection devices has made it possible to
implement remote management in IoT applications, and it is based on the
following three layers of technology:
- Subscription management platforms create, store, and provide encrypted operator profiles over the air;
- Connectivity orchestration engines make the best choice of a network for each area on the basis of input from the coverage, latency, and cost perspective;
- Security modules carry out mutual authentication, guarantee secure booting, and perform signing of updates in line with UNECE Regulation No. R155 and R156.
The Five-Stage Profile Lifecycle
A profile generally goes through five stages, which are download,
installation, activation, transitioning, and deletion. Each stage relies on the
transfer of verified messages between the platform and eUICC, and all the
stages must be completed even in the worst of conditions. The platforms
that store the commands and are capable of retries reduce the chances of unsuccessful
activations, which is very important, since the vehicle that is unable to
connect cannot get the necessary updates related to safety. Advanced predictive
systems offer another possibility, which involves staging of the next profile
before the car arrives at the border line based on the geolocation and
historical coverage data.
Inside an eCall Data Path
Emergency call systems demonstrate the way the technology
operates. After the accident, the in-car device sends an electronic call
automatically or can trigger the call by pressing the button. The device sends
minimal information about the accident: time, location, direction of the car
and other parameters of the vehicle, via a mobile network to a suitable
destination. Then, a two-way communication channel to the emergency number is
established. The whole system is based on the availability of a working eSIM
profile.
Regulation
Creates Mandatory Demand
Regulation has become a major demand
driver. According to the European Commission’s interoperability portal, eCall
rules have applied since 1 April 2018, and all new M1 and N1 vehicle types in
the EU are equipped with the service. Member States have deployed eCall at
emergency answering points since 1 October 2017. For eSIM strategy, the key
change is Delegated Regulation (EU) 2024/1180, which requires new M1 and N1
types to support eCall over 4G/5G packet-switched networks from 1 January 2026.
Answering points must still handle 2G/3G calls while at least one such network
operates, so vehicles and platforms must bridge two network generations.
Safety
Outcomes Show Why Connectivity Matters
Connected safety services have been
made possible thanks to advanced cellular networks, and the statistics support
this assertion. According to preliminary estimates by the National Highway
Traffic Safety Administration (NHTSA), there were an estimated 17,140 traffic
fatalities in the USA in the first six months of 2025, which is less than
18,680 fatalities in the year before. This implies a decrease of 8.2%, or
approximately 1,540 fewer fatalities. The fatality rate has dropped from 1.16
in 100 million miles in driving to 1.06, which is the lowest number since 2014
measured at mid-year. Although connected safety services could not be blamed
solely for these results, the statistics open up a number of questions for
authorities, insurance companies, and manufacturers.
Numbering,
Testing and Interoperability
In order for interoperability to be
successful, there should be shared identifiers and regular testing. According
to ITU Operational Bulletin No. 1155 of 1 September 2018, the European eCall
system uses international phone numbers. The most recent ITU Circular TSB 249
for 2020 indicates that the ranges being used for the European eCall system are
883130, 88239, and 88237. In addition, testing events bring additional
evidence: the portal of the European Commission reports on the occurrence of
the 6th eCall Plugtest (2017), the first plug test of next generation eCall
(2020), the second plug test of next generation eCall (2022) and the 6th NG112
test (in Malaga, Spain, 30 September to 4 October, 2024). These events confirm
that transition to new technology is happening in reality and not merely
theoretically.
Technology
Standards Snapshot
|
Layer |
Standard |
Year |
|
Minimum set of data |
EN
15722 |
2020 |
|
2G/3G eCall (circuit-switched) |
EN
16062 |
2023 |
|
4G/5G eCall (packet-switched) |
EN
17184 |
2024 |
|
Hybrid circuit/packet eCall |
EN
17905 |
2023 |
|
Satellite eCall |
CEN/TS
17312 |
2019 |
|
End-to-end conformance testing |
EN
16454 |
2023 |
|
IMS conformance testing |
EN 17240 |
2024 |
|
Two-wheeler eCall |
EN 17249-5 |
2025 |
Cybersecurity
and Data Governance
As eSIM identifiers serve as the
identifier for vehicle's network identity, security of such systems must be
considered from the very beginning. Two UNECE directives serve as the starting
point for ensuring safety in this field. Specifically, regulation R155 deals
with cybersecurity management, and regulation R156 deals with management of
software updates. To ensure safety in practice, three standard control methods
are used by the applications: hardware-based key storage, mutual
authentication, and complete logging of the interaction. Privacy is also an
important thing and is taken care of by EU regulation (EU) 2017/78 which
provides for data protection for users of the system in question in case of
eCall.
Key
Business Trends in Connected Vehicle Services
The first leading trend relates to
the transition from selling hardware products once to generating recurring
revenue from software. A CAGR of 15.7 % is expected in the following years
until 2033. As a result, developers now prefer to sell navigation, streaming,
in-car Wi-Fi, and telematics as subscriptions through one connectivity
solution. There are three trends:
- Globally
default vehicles: Only one
hardware modification is shipped approximately all around the globe. After
the sale of the product, all the needed local profiles are loaded which
makes manufacturing easier in various regions.
- Wireless
communications services: The same
communication channel is used for extending the software, map updates,
etc., thus, one profile not working stops the entire process of
communicating all the campaigns.
- The knowledge of
several telecommunication systems : enhances the
chances of the platform to connect the car to the network even if the
network changes.
Technology
Challenges to Solve
The main limitation is the long
duration of a vehicle life cycle. The time from the 2018 eCall mandate until
packet switching in 2026 shows the slow-moving nature of vehicle technology
compared to network technology. This necessitates a platform that allows remote
configuration changes without the need for a garage visit. The primary concerns
are interoperability between operators and OEM back-end systems, cybersecurity
in every connected device, and managing costs related to roaming data. All
three require a standards-based system rather than a proprietary one.
Conclusion
Management of automotive eSIMs is turning into an essential vehicle infrastructure element for each software-based vehicle system. Starting from 2024, with USD 1.44 billion projected income and a growth rate of 15.7%, packet-based protocols already established in the industry will allow teams with standardized profiling, security, and testing, to provide connected services for the next nine years.
Author Bio:
Ashish Kolte is a Marketing Manager at Dataintelo with expertise in marketing, market intelligence, and business strategy. He combines marketing insights with industry research to help organizations understand market dynamics, identify growth opportunities, and make data-driven decisions. His areas of interest include emerging technologies, artificial intelligence, healthcare, industrial markets, and global business trends. Through his writing, Ashish shares research-backed perspectives on evolving industries and strategic market developments.
Website: https://dataintelo.com/
