Connected cars to drive Embedded SIM growth as operators launch products

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The GSMA's Embedded SIM specification could earn operators €7 billion during 2020, as operators and vendors such as Telefónica and Vodafone have launched solutions using the technology, new research has found. 

A report from Beecham Research said that adoption of the standard could accelerate growth of the M2M market by up to 34 percent to around 639 million connections in 2020. The researchers said there will be 244 million M2M connections globally by the end of this year.

Embedded SIM is a standard that allows operators to provide sealed connectivity that is built into a specific device upon manufacturing. The standard also aids over the air provisioning and management by operators.

Beecham predicts that the automotive sector will drive the Embedded SIM market, followed by consumer electronics. 

Robin Duke-Woolley, CEO of Beecham Research, said: “The availability of the GSMA Embedded SIM Specification is a big deal for the connected devices market. This is targeted primarily at the OEM community to make it easier and more streamlined both to build cellular connectivity into their products and to sell them through many more channels to market. It also considerably opens up the second hand market in cars and other products for continued use of support services by second and subsequent owners.”  

At this week's Mobile 360 Series-Middle East conference in Dubai, the GSMA will announce that operators including AT&T, Etisalat, NTT DOCOMO, Telefónica and Vodafone Group and vendors such as Gemalto, Giesecke & Devrient, Morpho (Safran), Oberthur Technologies, Sierra Wireless and Telit have released products using the standards.

The industry body added that Ericsson, Jasper and Telenor Connexion are also readying products.

Orange's Head of Connected Cars recently told Mobile Europe's sister title European Communications that Embedded SIM was "very important" for the industry.

The GSMA has also published test specifications for companies wishing to build remote provisioning solutions, as well as a security accreditation scheme to ensure companies are meeting required standards.

Alex Sinclair, Chief Technology Officer, GSMA, said: "Our vision has always been to unite all stakeholders behind a single, common and global specification that will help accelerate the growing M2M market. It has also been our intention for the GSMA Embedded SIM specification to become the de facto industry standard.

"Industry-wide adoption sets us on the path for the long-term growth and development of the industry and we welcome the news that the M2M community is ready to do business using the specification.”

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