Despite slower than expected enterprise adoption, the market outlook for 5G RedCap and eRedCap technology remains strong, finds Omdia. This technology is projected to significantly transform the IoT landscape, suprassing 700 million global connections by 2030.
This is according to Omdia’s latest report, ‘5G RedCap and eRedCap: The Current and Future State of the Market’.
5G RedCap and eRedCap technologies deliver solutions that effectively bridge the crucial gap between high-performance 5G and low-power IoT applications. Key advantages include:
- Improved power consumption for extended device longevity
- Optimised performance for mid-tier IoT applications providing a cost-effective migration path from LTE
- Reduced device complexity through simplified architecture, resulting in lower hardware costs
- Seamless integration with existing network infrastructure
The RedCap ecosystem is rapidly evolving, driven by key advancements:
- Global carriers including AT&T, T-Mobile, and BT Group have successfully completed RedCap trials
- Major chipset and module manufacturers such as Qualcomm, MediaTek, and Quectel have launched commercial RedCap modules
- Innovative use cases are emerging across healthcare, industrial IoT, and smart city applications
Several factors will influence the pace of adoption of 5G RedCap:
- Expansion of 5G SA network deployments, which have experienced slowdowns due to economic conditions
- Anticipated reductions in hardware costs, which have yet to materialise
- Continued maturation of the broader RedCap and IoT ecosystem
- Development and clear identification of enterprise use cases designed for mass-scale deployments rather than limited device implementations
“RedCap and eRedCap technologies represent a strategic evolution in IoT connectivity,” said Alexander Thompson, Senior IoT Analyst, Omdia, and lead author of the report. “While adoption timelines may extend beyond initial projections, these technologies will play a pivotal role in future IoT deployments, particularly as the ecosystem matures and 5G SA networks expand globally.”
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