The automotive industry is in the midst of a profound digital transformation. Vehicles are increasingly defined by software rather than hardware, and connectivity is becoming an essential component. According to Transforma Insights’ IoT Forecast Database, the number of cars with factory-fit connectivity will grow from 457 million at the end of 2024 to 1.4 billion in 2034.
At the heart of this shift lies eSIM technologies, which enable cars to connect seamlessly to mobile networks worldwide. The latest standard in this field, SGP.32, promises to reshape how car manufacturers deliver, manage, and scale connected vehicle services. In this blog post, based on the recent eBook that Transforma Insights published in conjunction with Cubic3, we explore the technology evolution, the benefits and challenges of SGP.32 for automakers, and summarise the key considerations for implementation.
Traditional SIM cards have long been used to authenticate devices on mobile networks. For connected vehicles, however, removable SIMs posed practical challenges. Cars often operate in extreme conditions, which drove the adoption of Machine-to-Machine Form Factor (MFF, now MFF2) SIMs, soldered directly onto the vehicle’s telematics control unit.
Hand-in-hand with MFF2 came Remote SIM Provisioning (RSP), which allows for the switching of profiles on those soldered SIMs, without physically interacting with the device. This proved vital for supporting connected car roll-outs, enabling compliance with roaming restrictions and simplifying logistics. Early standards such as SGP.02 (M2M) and SGP.22 (Consumer) laid the foundation, but each had limitations. SGP.02 often created vendor lock-in, while SGP.22 relied too heavily on user intervention for IoT scenarios.
First unveiled in 2023, and finally available for use in late 2025, SGP.32 is the GSMA’s new IoT-oriented standard for remote SIM provisioning. SGP.32 provides significant advantages for automakers building connected vehicles. Unlike earlier standards, it offers more flexibility, interoperability, and scalability for global automotive connectivity.
SGP.32 builds on the consumer-style pull model of SGP.22 but adapts it for automation and scalability. Instead of requiring drivers to scan QR codes or interact directly with the system, an IoT Profile Assistant (IPA) on the car communicates with an external eSIM IoT Remote Manager (eIM). This arrangement allows automakers to control profile changes remotely, switching vehicles between carriers without the involvement or approval of the current provider.
For car makers, this is a major shift. It offers the autonomy to select and manage network partners dynamically, reducing dependency on a single vendor.
SGP.32 offers a set of key benefits for automakers, including:
Automakers must navigate a maze of international regulations. Many countries prohibit permanent roaming and require data to remain within national borders. SGP.32 enables vehicles to switch seamlessly to local operators, ensuring compliance with regional laws and avoiding logistical bottlenecks.
Unlike SGP.02, which tied automakers to specific vendors, SGP.32 empowers manufacturers to choose connectivity providers independently. This creates commercial leverage in negotiations and ensures continuity even in cases of network shutdowns or disputes.
With SGP.32, cars can be built with a single eSIM configuration, then localised once they reach the destination market. This removes the need to pre-plan SIM allocations or ship physical cards globally, streamlining production and logistics.
Historically, automakers have used SGP.02 for telematics and SGP.22 for consumer-facing services like infotainment. SGP.32 allows both to be managed under one framework, simplifying architectures and reducing costs.
While the advantages for manufacturers are clear, SGP.32 also improves the driver experience. Vehicles will be able to automatically connect to the strongest available network without requiring any input from the driver. This means more reliable coverage for navigation, infotainment, safety services, and over-the-air software updates.
By consolidating consumer and telematics connectivity into one standard, costs for delivering connected services are likely to fall. Drivers could benefit from more affordable subscription models and fewer dealership visits for connectivity issues. Most importantly, SGP.32 ensures vehicles remain compatible with future network technologies throughout their lifecycle.
Despite its promise, adopting SGP.32 is not without challenges. These include:
To fully capitalise on this new standard, automakers must undertake a structured approach to assess, adapt and optimise their operations.
Car makers should audit existing eSIM deployments, standards, and vendors to establish a baseline, while checking hardware compatibility of telematics units and modules with SGP.32. Migration goals such as cost reduction or flexibility must be defined, and cross-functional teams aligned early to support the transition.
Adopting GSMA-compliant solutions and robust provisioning platforms is essential for interoperability, multi-operator support, and integration with existing systems. Hybrid architectures will be needed to manage both SGP.02 and SGP.32 during rollout, supported by real-world testing across networks and regions.
Automakers must ensure compliance with roaming, data sovereignty, and localisation rules, while also applying strong security practices such as encryption, secure boot, and tamper resistance. Working with vendor-agnostic partners helps maintain flexibility and avoid dependence on a single operator.
Transition should follow a phased migration plan, starting with limited programmes or regions. Training engineering, IT, and operations teams and establishing lifecycle management processes for profile updates, renewals, and diagnostics will help maintain service continuity across global fleets.
SGP.32 represents a major leap forward in the evolution of connected vehicle technology. By delivering greater flexibility, regulatory compliance, and future-proof connectivity, it aligns with the broader shift towards software-defined vehicles and global mobility.
For automakers, the adoption of SGP.32 is both an opportunity and a responsibility. Those who act decisively will gain the ability to scale new connected services, reduce operational complexity, and differentiate in an increasingly competitive market. At the same time, they must carefully manage security, integration, and commercial challenges to unlock its full potential.
Ultimately, SGP.32 is more than a new technical standard. It is a foundation for the next generation of connected mobility, ensuring vehicles remain secure, compliant, and connected throughout their lifecycle.
In September 2025 Transforma Insights published an eBook in conjunction with Cubic3 which examines the evolution of eSIM technology and remote SIM provisioning (RSP) within the automotive sector, in particular focusing on the transition to the GSMA’s latest IoT-oriented standard, SGP.32.
It examines, from the perspectives of automakers, and in much greater detail than this blog post, the benefits of SGP.32 relative to other previous approaches, the challenges of integrating SGP.32, and the best approaches to implementing. Download the eBook here: SGP:32: How eSIM Innovation is Changing the Game for Connected Vehicles.
