The next‑generation IoT eSIM is emerging fast. The GSMA has finalized the SGP.32 standard, designed to simplify deployments, reduce costs at scale, and eliminate many lock‑in constraints associated with the legacy M2M eSIM standard, SGP.02.
Except for China, the automotive industry has relied almost exclusively on SGP.02 since the beginning. This raises a key question: what future does SGP.32 hold for automotive, and what could its adoption change?
SGP.32 is likely to spread quickly
Built on the consumer eSIM standard SGP.22, SGP.32 reuses the same architecture and platforms, effectively unifying the ecosystem. Because SGP.22 is already widely deployed, SGP.32 benefits from a massive installed base: Apple alone lists 400+ mobile operators supporting consumer eSIM.
The main historical barrier — operator reluctance to adopt a more open standard — is now minimal, since most of the infrastructure is already in place.
What will drive automotive adoption?
SGP.02 often makes operator switching (IMSI swaps) costly and operationally complex. SGP.32 dramatically simplifies and reduces the cost of switching MNOs, giving OEMs a flexible tool to navigate stricter rules on permanent roaming and local data sovereignty. This will accelerate the shift from MNO‑centric to OEM‑centric connectivity governance
Meanwhile, SIM vendors now offer dual‑standard eSIM platforms supporting both SGP.02 and SGP.32, which will accelerate early adoption.
The medium‑term challenge
SGP.32’s advantages make broad adoption almost inevitable. But SGP.02 cannot be upgraded to SGP.32.
This means:
• new vehicles will ship with SGP.32
• the existing fleet will remain on SGP.02
As the legacy fleet shrinks, the unit cost of maintaining SGP.02 connectivity will rise. At some point, OEMs may consider discontinuing SGP.02 — but killing SGP.02 too early could blackout connected services for entire model generations
The short‑term dilemma
The industry is entering the era of Software‑Defined Vehicles (SDVs), with frequent multi‑gigabyte OTA updates and long‑term revenue opportunities.
If an OEM delays SGP.32 adoption and continues expanding its SGP.02‑based SDV fleet, switching off SGP.02 later would instantly cut OTA capabilities and revenue streams for all SDVs still on the old standard.
An OEM with millions of SGP.02‑based SDVs may be forced to maintain a costly legacy stack until 2040.
Conclusion
SGP.32 brings clear and compelling benefits. But delaying adoption risks creating a large, expensive SGP.02 legacy fleet — a burden that could weigh on OEMs for years.
We’re helping OEMs model the impact of SGP.32 adoption. We’d love to continue the conversation on this topic and explore global connectivity challenges. If you’re heading to Mobile World Congress in Barcelona from March 2–5, let’s meet. Book a slot here: https://calendly.com/mvnoglobal/meeting-at-mwc-2026