Regulatory Changes and How SGP.32 is Reshaping Enterprise IoT Connectivity Strategies
The Internet of Things (IoT) is entering a new phase of scale and complexity. Analysts/projectors expect the number of global IoT connections to reach 21.9 billion by 2026. IExperts expect it to approach 30 billion by the early 2030s. This signifies that connected devices will become the foundation of operations across industries. From energy networks and smart hospitals to retail automation and digital manufacturing, IoT Connectivity has become a cornerstone of critical global processes.
But this growth brings new challenges. Technologies are constantly evolving, and standards are maturing. Meanwhile, regulatory frameworks are becoming increasingly stringent, and business models are always transforming. Enterprises deploying large numbers of devices must now prepare for the future. They should address compliance requirements, rising security expectations, and the need for multi-network resilience. In this environment, a supplier’s value will no longer lie solely in raw connectivity capabilities. More importantly, it will be in its ability to help businesses cope with long-term uncertainty.
Experts from Wireless Logic, a global leader in IoT connectivity, provide an in-depth analysis. They focus on the key factors reshaping the market landscape in 2026.
Regulation, Uncertainty, and the Need for Forward-thinking Suppliers
As the Internet of Things (IoT) becomes increasingly integrated into national infrastructure and critical services, governments are strengthening their requirements for digitalization and data sovereignty. Businesses expanding globally must navigate increasingly fragmented regulations. These range from localization requirements to cybersecurity certifications. IoT connectivity plays a vital role in these strategies.
“As countries tighten digitalization rules and data expectations, the future of global IoT will depend more heavily on suppliers’ ability to help businesses navigate evolving policies and long-term uncertainty.”— Cyril Deschanel, Managing Director, Wireless Logic Europe & UK Group
Deschanel points out that this shift will redefine how businesses evaluate IoT partners:
“This will move the market away from simply comparing coverage and price-driven decisions. Instead, suppliers who can provide real flexibility, clear guidance, and the ability to adapt as rules or network conditions change will be the strongest competitors.” IoT connectivity solutions will become essential in this evaluation process.
Standards such as SGP.32, promising smoother eSIM updates and large-scale lifecycle management, will further accelerate this transformation. Connectivity in IoT systems will undergo significant transformation.
“Standards like SGP.32 promise smoother, larger-scale updates. Enterprises will be more inclined to choose partners with a forward-thinking approach rather than reactive ones. This will determine whether vendors simply sell connectivity services or can shape enterprises’ resilience in a rapidly changing world.”
SGP.32: Beyond Hype, Towards Practical, Scalable Configuration
While SGP.32 is often hailed as a transformative moment for the Internet of Things (IoT), Wireless Logic experts advise that expectations should remain realistic. The new standard will simplify credential management and configuration. However, only vendors with a strong portfolio of IoT connectivity products covering multiple markets will be able to fully realize its potential.
“The real significance of SGP.32 will eventually become apparent — people will realize that eSIM is just a connectivity method, not a unicorn product capable of changing the industry. Vendors who can provide broad connectivity solutions across markets will stand out. The dream of truly achieving remote connectivity will finally be realized, just as people hoped years ago, and vendors lacking robust connectivity products will suffer in the IoT market.”— Toby Gasston, Chief Product Manager, Wireless Logic
While many consider SGP.32 a transformative moment for the Internet of Things (IoT), Wireless Logic experts advise businesses to maintain realistic expectations. SGP.32 lowers the barriers to entry, and more vendors — including those who previously focused on the consumer mobile market — will enter the IoT field. But Gasston believes this shift will highlight the unique advantages of established industrial-grade IoT vendors with strong connectivity expertise.
“SGP.32 will encourage new vendors, especially those serving the consumer market. However, it will also highlight the value of established IoT connectivity vendors and their advanced value-added services and platforms. These are capable of providing connectivity at scale.” In IoT Connectivity, these services are crucial.
An Adaptability-Driven Market
These insights indicate that resilience, forward-thinking, and regulatory awareness have become core competitive advantages in the IoT ecosystem. With millions of devices deployed long-term — often in mission-critical environments — enterprises will increasingly choose partners who can provide long-term lifecycle management. They will demand more than just connectivity services. Strong IoT connectivity services enhance this advantage.
While standards like SGP.32 introduce significant improvements, true success will depend on vendors’ ability to combine technology with regulatory insight. Cross-market expertise and a secure, scalable platform are also crucial.
In this rapidly changing world, IoT companies must be ready not only to connect but also to adapt. This exemplifies IoT connectivity’s vital role in this adaptability.