By the close of 2024, around 12 percent of IoT SIMs were connected via third-party IoT Connectivity Management Platforms (CMPs). In contrast, about 7 percent were handled by IoT Mobile Virtual Network Operators (MVNOs). The remainder, a substantial portion, was managed through mobile operators' proprietary CMPs. Outside of China, third-party CMPs held an even larger market share, managing 31 percent of all IoT SIMs. This segment alone generated approximately US$1.0 billion in annual revenue for 2024, marking an 8 percent growth compared to the previous year. Future projections suggest that revenues in this sector could climb at a 12 percent compound annual growth rate (CAGR), reaching US$1.8 billion by 2029.
The IoT CMP sector has experienced significant shifts, largely driven by vendors striving to combat declining average revenue per user (ARPU) in IoT connectivity. Early CMP platforms launched during a time of excessive IoT market expectations, which led some vendors to withdraw from the space. Others pivoted by refining their pricing structures and integrating more value-added services. Presently, investments are directed toward innovations like remote SIM provisioning (RSP), eSIM orchestration, advanced connectivity management tools, machine learning-enhanced analytics, security protocols, and capabilities enabled by 5G standalone (SA) networks.
Cisco stands as the global leader in IoT CMP solutions. By the end of 2024, the company had collaborated with nearly 60 mobile operators worldwide, overseeing around 262 million IoT SIMs through its IoT Control Center. Aeris follows as the second-largest vendor, managing 84 million connected devices across partnerships with 28 mobile operators. In early 2023, Aeris took over Ericsson's struggling IoT business. Following the acquisition, Aeris successfully integrated its legacy systems with Ericsson’s IoT Accelerator, creating a unified platform.
Meanwhile, MAVOCO has emerged as a rising competitor, forming alliances with over 10 mobile operators by year-end 2024. MAVOCO's platform stands out for its cloud- and core-agnostic architecture, allowing operators to leverage existing infrastructure to support global IoT customers more efficiently. Other prominent vendors in the IoT CMP space include Comarch, Nokia, and Vodafone. Additionally, players like 1NCE, 1oT, emnify, Eseye, and floLIVE have leveraged their CMP technologies to provide services to operators and IoT MVNOs alike.
A notable trend in the fragmented IoT CMP market has been the rise of connectivity management orchestration (CMO) platforms. These solutions, which enhance existing CMP functionalities via API integrations, are reshaping the landscape. Companies like IoTM Solutions and Simetric have pioneered this space. Several IoT CMP vendors and MVNOs are now incorporating CMO features into their offerings. For instance, AT&T embraced the CMO model by launching the IoT Console Single Pane of Glass with Simetric in November 2024. Similarly, Enea introduced its IoT CCS service, providing mobile operators with multi-tenant private APN solutions for enterprise clients.
Despite growing interest, IoT solution adoption remains slower compared to the consumer market. The original eSIM M2M specification, launched in 2013, fell short of facilitating widespread remote SIM provisioning. However, the updated eSIM IoT specification SGP.32, published in 2023, has rekindled optimism for broader adoption. New deployments benefit from a well-established base of SM-DP+ systems that cater to both consumer and IoT eSIM services.
The evolution of IoT eSIM technology has been driven by established SIM providers like Thales, Giesecke+Devrient (G+D), and IDEMIA. New entrants, such as Kigen, have also joined the space, spurring innovation. The transition to the SGP.32 specification has further attracted consumer-focused eSIM players, including Redtea Mobile and Monty Mobile, to the IoT market. According to Berg Insight, approximately 10 percent of cellular IoT devices globally used eSIM technology by the end of 2024.