SGP.32 and what it means for your business: The complete implementation guide

SGP.32 is the GSMA's next-generation eSIM standard specifically designed for IoT devices that enables remote SIM provisioning without requiring consumer interaction. Unlike previous standards, SGP.32 introduces lightweight protocols and flexible architecture options that make eSIM technology practical for resource-constrained IoT devices, from smart meters to industrial sensors.

For businesses deploying cellular IoT at scale, SGP.32 represents a fundamental shift in connectivity management—eliminating physical SIM logistics, enabling true zero-touch provisioning, and providing unprecedented flexibility in carrier selection and profile management. This guide provides an overview of SGP.32 and what you need to know to take best leverage this new standard for your cellular IoT connected devices.

Table of contents

1. Understanding SGP.32 architecture
2. Implementation pathways: eIM vs IPA
3. Business benefits and ROI analysis
4. Industry-specific applications
5. Implementation readiness checklist
6. Cost considerations and timeline
7. Getting started with SGP.32
8. Frequently Asked Questions

Understanding SGP.32 architecture

Core components of SGP.32

The SGP.32 specification introduces a modular architecture designed specifically for IoT use cases. At its heart are three critical components:

eSIM IoT Remote Manager (eIM)

The eIM serves as the central orchestration point for profile management in IoT deployments. Unlike consumer-focused solutions, the eIM is designed to handle bulk operations, automated provisioning, and integration with existing IoT platforms. It manages:

• Profile lifecycle management
• Bulk provisioning operations
• Policy enforcement
• Integration with enterprise systems

IoT Profile Assistant (IPA)

The IPA represents SGP.32's most innovative feature—flexibility in deployment architecture. The IPA can be implemented in two configurations:

• IPAd (Device-based): Embedded within the IoT device firmware
• IPAe (Network-based): Hosted externally on servers or gateways

This flexibility allows businesses to choose the implementation that best fits their device constraints and operational requirements.

SM-DP+ Integration

SGP.32 leverages the existing SM-DP+ infrastructure from consumer eSIM deployments, ensuring compatibility with established carrier systems while adding IoT-specific enhancements for bulk operations and automated management.

Protocol support for constrained devices

One of SGP.32's key innovations is its support for lightweight protocols essential for battery-powered and resource-constrained IoT devices:

• CoAP (Constrained Application Protocol): Enables efficient communication for devices with limited processing power
• MQTT: Supports publish-subscribe messaging patterns common in IoT deployments
• DTLS (Datagram Transport Layer Security): Provides security for UDP-based communications
• LwM2M: Facilitates device management in resource-constrained environments

This protocol flexibility ensures SGP.32 can support everything from simple sensors to complex industrial equipment.

Why SGP.32 matters for IoT

The rapidly evolving IoT landscape demands new standards and technologies to keep pace with the unique challenges faced by connected devices, like SGP.32. Unlike consumer devices (e.g., smartphones or tablets), IoT devices operate under distinctly different parameters that prioritize efficiency, scalability, and automation. These devices often function without human interaction, rely on limited resources such as battery life and processing power, and are deployed on a massive scale with potentially millions of units distributed globally.

Additionally, IoT deployments require seamless remote management capabilities to remain operational and adaptable in dynamic environments. SGP.32 directly addresses these complexities, offering a standardized framework tailored to the specific needs of IoT devices, ensuring more effective and streamlined implementation within this growing technological domain.

The key differentiator of SGP.32 is its recognition that IoT devices have fundamentally different requirements than consumer devices:

1. No human interface: IoT devices often lack screens or input methods
2. Resource constraints: Limited battery, processing power, and memory
3. Scale requirements: Deployments involving thousands or millions of devices
4. Operational models: Need for remote, automated management

Implementation Pathways: eIM vs IPA

Direct Model (IPAd - Device-Based)

The Direct Model, also known as the IPAd (Device-Based) approach, is increasingly becoming a focal point for IoT implementations that prioritize autonomy and security.

By embedding IPA functionality directly within the IoT device, this model minimizes reliance on external networks and intermediaries, making it particularly well-suited for high-security applications and scenarios where devices operate in remote or intermittent connectivity environments. It empowers devices to have complete control over communication with SM-DP+ servers while reducing external vulnerabilities, aligning perfectly with industrial IoT and mission-critical deployments that require robust reliability and independence.

With the IPA functionality residing in the IoT device itself, this approach offers:

Advantages

• Complete device autonomy
• Direct communication with SM-DP+
• Reduced network dependencies
• Enhanced security through device-level control

Best for

• Devices with sufficient processing capabilities
• High-security applications
• Deployments requiring device independence
• Use cases with intermittent connectivity

Implementation requirements

• Minimum 512KB additional storage
• Support for TLS 1.2 or higher
• Sufficient processing for cryptographic operations
• OTA update capability for IPA maintenance

Indirect Model (IPAe - Network-Based)

The Indirect Model, commonly referred to as IPAe (Network-Based), leverages external infrastructure like IoT gateways or cloud platforms to manage IPA functionality.

This model simplifies device architecture by offloading processing and storage requirements, making it ideal for ultra-low-power sensors and retrofitted legacy devices. By centralizing management and updates, IPAe reduces deployment costs and complexity while ensuring seamless integration with existing IoT ecosystems, especially in deployments where consistent access to reliable gateway infrastructure is guaranteed.

The indirect model hosts IPA functionality on external infrastructure, such as IoT gateways or cloud platforms, and offers:

Advantages

• Minimal device requirements
• Centralized management and updates
• Support for extremely constrained devices
• Easier integration with existing IoT platforms

Best for

• Ultra-low-power sensors
• Legacy device retrofitting
• Deployments with reliable gateway infrastructure
• Cost-sensitive applications

Implementation requirements

• Reliable connectivity to IPA host
• Secure communication channels
• Gateway or cloud infrastructure
• Device authentication mechanisms

Business benefits and ROI analysis

Cost efficiency is a critical factor driving IoT deployment decisions, especially as businesses scale their operations globally. The adoption of SGP.32 brings a transformative approach to connectivity that eliminates traditional inefficiencies and translates directly into measurable financial savings.

By shifting away from physical SIM logistics and leveraging remote provisioning, companies can significantly reduce costs associated with procurement, shipping, inventory management, and regional complexities. Moreover, with streamlined deployment timelines and a simplified operational model, SGP.32 not only reduces expenses but also accelerates time-to-market, enabling businesses to focus on innovation and growth without being bogged down by connectivity challenges.

Quantifiable cost savings

1. Elimination of physical SIM logistics

• Traditional cost: $2-5 per SIM for procurement, inventory, and shipping
• SGP.32 cost: $0 for physical logistics
• Annual savings (10,000 devices): $20,000-50,000

2. Reduced deployment time

• Traditional: 2-4 weeks for SIM procurement and installation
• SGP.32: Immediate provisioning
• Time Savings: 90% reduction in deployment timeline

3. Simplified global operations

• Traditional: Multiple SKUs for different regions
• SGP.32: Single global SKU with remote provisioning
• Inventory cost reduction: 60-80%

Operational benefits

SGP.32 redefines how businesses manage their devices by providing a suite of features designed to streamline operations and enhance flexibility across global markets. From zero-touch provisioning, which allows devices to activate connectivity remotely without manual configuration, to dynamic carrier selection for optimizing network performance, SGP.32 makes managing large-scale IoT projects seamless.

Additionally, its ability to simplify compliance with local regulations and bolster device security through advanced cryptographic measures ensures businesses remain agile, secure, and prepared for the complexities of global IoT connectivity.

1. Zero-touch provisioning: Deploy devices anywhere globally and activate connectivity remotely, eliminating the need for field technicians or pre-configuration.
2. Dynamic carrier selection: Switch between carriers based on coverage, performance, or commercial terms without physical intervention.
3. Simplified compliance: Meet local regulatory requirements by provisioning local profiles remotely, avoiding permanent roaming restrictions.
4. Enhanced security: Leverage advanced cryptographic protection and secure provisioning channels inherent in the SGP.32 architecture.

ROI calculation framework

By addressing key cost drivers such as physical SIM logistics, labor, inventory management, and truck roll expenses, SGP.32 enables organizations to optimize their budgets while increasing operational efficiency. With implementation costs factored in, businesses can calculate their annual savings and project ROI timelines with precision, often achieving payback within 6-12 months for deployments exceeding 1,000 devices. This framework empowers decision-makers to strategically plan and realize immediate and long-term financial benefits from their IoT investments.

For a typical IoT deployment, consider these factors:

Annual Savings =

(Physical SIM Costs × Device Count) +

(Labor Costs × Installation Time) +

(Inventory Carrying Costs) +

(Truck Roll Costs × Failure Rate) -

(SGP.32 Implementation Costs)

Typical ROI Timeline: 6-12 months for deployments >1,000 devices

Industry-specific applications

The versatility of SGP.32 allows it to seamlessly adapt to the unique challenges of various industries, delivering customized connectivity solutions that drive efficiency and innovation. 

Smart cities and infrastructure

Use case: Connected street lighting

• Challenge: Managing connectivity for 50,000+ light poles across a city
• SGP.32 solution: Remote provisioning enables phased deployment and dynamic carrier selection based on coverage maps
• Benefits: 70% reduction in deployment costs, real-time carrier optimization

Healthcare IoT

Use case: Remote patient monitoring devices

• Challenge: Ensuring reliable connectivity for critical health data transmission
• SGP.32 solution: Automatic failover between carriers, compliance with healthcare data regulations
• Benefits: 99.9% connectivity uptime, simplified HIPAA compliance

Automotive and fleet management

Use case: Global vehicle telematics

• Challenge: Managing connectivity across multiple countries with varying regulations
• SGP.32 solution: Automatic local profile provisioning based on GPS location
• Benefits: Compliance with local regulations, optimized data costs

Industrial IoT and manufacturing

Use case: Predictive maintenance sensors

• Challenge: Deploying thousands of sensors in harsh industrial environments
• SGP.32 solution: IPAe model with gateway-based management for constrained sensors
• Benefits: 80% reduction in maintenance costs, extended battery life

Supply chain and logistics

Use case: Container tracking

• Challenge: Maintaining connectivity across ocean shipping routes and multiple countries
• SGP.32 solution: Dynamic profile switching based on location and network availability
• Benefits: 60% reduction in roaming costs, improved tracking reliability

Implementation readiness checklist

Ensuring a seamless transition to SGP.32 requires careful planning and preparation across technical, infrastructure, operational, and commercial dimensions. This implementation readiness checklist provides a guide to evaluating device capabilities, establishing robust infrastructure, preparing teams for deployment, and validating the business case for long-term success.Technical requirements assessment

Device capabilities

• Minimum memory available (512KB for IPAd, 64KB for IPAe)
• Protocol support (HTTP/S, CoAP, MQTT)
• Security capabilities (TLS 1.2+, secure storage)
• Power budget for provisioning operations
• OTA update mechanism

Infrastructure requirements

• IoT platform integration capabilities
• API support for bulk operations
• Security infrastructure (PKI, certificate management)
• Monitoring and analytics systems
• Backup and disaster recovery plans

Operational readiness

Team capabilities

• Understanding of eSIM technology and SGP.32 specifics
• API integration expertise
• Security best practices knowledge
• Project management for IoT deployments

Partner ecosystem

• SGP.32-compatible connectivity provider selected
• SM-DP+ access arrangements
• Device manufacturer support confirmed
• System integrator identified (if needed)

Commercial considerations

Business case development

• Total Cost of Ownership (TCO) analysis completed
• ROI projections validated
• Risk assessment performed
• Pilot program defined
• Success metrics established

Cost considerations and timeline

Transitioning to SGP.32 involves both initial investments and ongoing operational expenses. By factoring in one-time costs like platform integration, firmware updates, and pilot programs, alongside recurring expenses such as eSIM profiles and platform fees, businesses can accurately budget and project their timeline to ROI, ensuring a smooth and cost-effective implementation process.

Implementation costs

One-time costs

• Platform integration: $10,000-50,000 depending on complexity
• Device firmware updates: $5-20 per device type
• Training and documentation: $5,000-15,000
• Pilot program: $10,000-25,000

Ongoing costs

• eSIM profiles: $0.50-2.00 per profile (varies by provider)
• Platform fees: $0.10-0.50 per device per month
• Support and maintenance: 15-20% of initial implementation

Market timeline and availability

The rollout of SGP.32 is progressing rapidly, with the GSMA specification finalized and initial vendors already achieving certification. As pilot programs expand and commercial availability grows throughout 2025, the technology is on track for mass market adoption by year-end, paving the way for widespread use and a mature ecosystem by 2026 and beyond.

Current status

• GSMA specification finalized
• First vendors achieving certification (IDEMIA, Thales)
• Limited pilot programs available
• Testing tools and environments accessible

2025 outlook

• Q1-Q2: Broader vendor certification expected
• Q3: Commercial availability from major carriers
• Q4: Mass market adoption begins

2026 and beyond

• Widespread availability across all major markets
• Mature ecosystem of tools and platforms
• Standard feature in new IoT devices

Getting started with SGP.32

New technologies can always feel a bit overwhelming. How do you know the right time and right use cases to start weaving SGP.32 into your connectivity strategy. Here’s a high level overview of the steps to take to help you get started.

Step 1: Assess your current IoT connectivity strategy

Begin by evaluating your existing IoT deployment:

• Current SIM management challenges and costs
• Geographic distribution of devices
• Connectivity requirements and constraints
• Future scaling plans

Step 2: Choose your implementation model

Based on your device capabilities and operational requirements, select between:

• IPAd (Direct): For autonomous, capable devices
• IPAe (Indirect): For constrained devices or centralized management

Step 3: Select technology partners

Identify and engage with:

• Connectivity provider: Ensure SGP.32 support and roadmap alignment
• Platform provider: Hologram offers comprehensive SGP.32-ready solutions
• Device partners: Confirm hardware compatibility and update paths

Step 4: Design your pilot program

Start with a controlled pilot to:

• Validate technical architecture
• Test operational procedures
• Measure actual ROI
• Identify optimization opportunities

Step 5: Plan for scale

Develop your scaling strategy:

• Phased rollout plan
• Training programs for operations teams
• Integration with existing systems
• Performance monitoring framework

Frequently Asked Questions

When will SGP.32 be commercially available?

SGP.32 is expected to be commercially available from major carriers by Q3 2025. However, pilot programs and testing environments are available now through select providers, including Hologram.

How does SGP.32 differ from existing M2M eSIM solutions?

SGP.32 is specifically designed for IoT devices with support for lightweight protocols (CoAP, MQTT), flexible deployment models (IPAd/IPAe), and automated bulk provisioning capabilities that existing M2M solutions lack.

What devices are compatible with SGP.32?

Any cellular IoT device can potentially support SGP.32, from simple sensors using the IPAe model to complex industrial equipment using IPAd. The key is choosing the right implementation model for your device constraints.

How much does SGP.32 implementation cost?

Implementation costs vary based on deployment size and complexity. Typical ranges:

• Small deployments (<1,000 devices): $25,000-50,000 total
• Medium deployments (1,000-10,000): $50,000-150,000
• Large deployments (>10,000): $150,000+ with decreasing per-unit costs

Can I migrate existing devices to SGP.32?

Yes, existing devices can potentially migrate to SGP.32 through:

• Firmware updates for capable devices (IPAd model)
• Gateway-based solutions for constrained devices (IPAe model)
• Hybrid approaches during transition periods

What security measures does SGP.32 include?

SGP.32 incorporates multiple security layers:

• End-to-end encryption for profile downloads
• Mutual authentication between devices and infrastructure
• Secure key storage requirements
• Anti-cloning and anti-tampering measures

How does SGP.32 handle regulatory compliance?

SGP.32 simplifies compliance by enabling:

• Local profile provisioning to avoid permanent roaming
• Dynamic adaptation to regulatory changes
• Audit trails for all provisioning activities
• Support for local lawful interception requirements

What happens if my device loses connectivity during provisioning?

SGP.32 includes robust error handling:

• Automatic retry mechanisms
• Partial download recovery
• Fallback to previous profiles
• Detailed error reporting for troubleshooting

Next steps: Implementing SGP.32 with Hologram

Hologram is actively preparing for the SGP.32 transition with solutions designed specifically for IoT innovators and businesses looking to scale efficiently. Our platform will support both IPAd and IPAe implementations, providing the flexibility you need for diverse IoT deployments.

The shift to SGP.32 represents a fundamental evolution in how businesses deploy and manage cellular IoT connectivity. By understanding the technology, preparing your infrastructure, and choosing the right partners, you can position your business to leverage this powerful new standard for competitive advantage.

This guide is regularly updated with the latest SGP.32 developments and market availability. Last updated: June 2025