New insights from Omdia into 5G technology predict that 5G RedCap (‘Reduced Capability’) will grow at a compound annual growth rate of 66%, reaching 963.5 million connections by 2030. These projections emphasise the increasing impact of 5G technology on IoT applications and the industry’s readiness for RedCap and eRedCap solutions.
As 4G networks begin to phase out over the next decade, RedCap and its enhanced variant, eRedCap (‘enhanced Reduced Capability’), are set to replace existing LTE Cat-1 to Cat-4 devices. The 3GPP’s Release 18 introduces eRedCap, designed with further reduced capabilities and lower data rate requirements, making it a cost-effective solution for IoT deployments. Omdia anticipates that eRedCap will follow a trajectory similar to RedCap, albeit with a slight delay of a year or two, easing the transition from 4G to 5G technologies.
“5G RedCap was specifically designed for IoT applications, and in just a year since the first module launches, we’ve already seen small-scale deployments and trials begin to take shape,” said Alexander Thompson, Senior Analyst, IoT, Omdia. “We expect 5G eRedCap to follow a similar path addressing use cases that demand reduced complexity and lower performance thresholds.”
Omdia’s report reviews the ongoing hardware launches and global trials, reflecting the rising interest in 5G RedCap. Companies across various industries are beginning to implement the technology, foreseeing its widespread adoption in the coming years.
A key distinction between 5G and previous generations is the range of innovative use cases it has enabled since its introduction in 2019. Omdia’s latest report highlights the top 10 IoT use cases where 5G has had the greatest impact. These use cases are evaluated based on factors such as market influence, technical challenges, implementation timelines, revenue potential, and the readiness of the vendor ecosystem.
The new research from Omdia also details the progress of 5G Standalone (SA) rollouts and their critical role in supporting vast numbers of IoT connections. Additionally, it explores the monetisation potential of 5G network APIs, the current state of private 5G networks, and their place within the broader 5G ecosystem, as well as the expected developments in network slicing.
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