According to ABI Research, a technology intelligence firm, shipments of IoT RedCap modules are expected to reach 80 million units between 2024 and 2029. 5G RedCap, finalised in the 3GPP’s Release 17, offers device manufacturers a migration path from 4G LTE to 5G for mid-range devices, catering to throughput needs that fall between enhanced Mobile Broadband (eMBB) and Low-Power Wide-Area (LPWA). This makes 5G RedCap particularly relevant for the IoT sector.
“5G RedCap is a series of network and device optimisations that strips back device complexity, acting as a natural successor to LTE Cat-4 and LTE Cat-6. It is a means of providing an affordable pathway to 5G for IoT device OEMs that do not require the full spectrum of 5G capabilities,” explained Jonathan Budd, Industry Analyst at ABI Research. “The mid-tier LTE Categories have proven valuable in connecting IoT devices; RedCap delivers LTE-equivalent throughput performance, with assurance of network longevity into the 5G era. Unsurprisingly, 5G RedCap is drawing significant interest across the IoT value chain, with Qualcomm, MediaTek, UNISOC, and ASR Microelectronics quick to enter the chipset market.”
The next phase of the standard, enhanced RedCap (eRedCap), will further reduce device complexity, creating additional opportunities for IoT device manufacturers currently using, or planning to use, LTE-Cat-1 and Cat-1bis. These categories are widely utilised for IoT applications, representing a larger market potential than 5G RedCap. From 2024 to 2029, 56 million modules, or 71% of all RedCap modules, are projected to be eRedCap, with 23 million, or 29%, expected to be for 5G RedCap (R17).
Sequans has already revealed its plans to develop an eRedCap chip, and it is anticipated that more silicon manufacturers will enter this increasingly competitive market. “As a replacement for LTE Cat-1 and Cat-1bis, eRedCap will be widely applicable in connecting devices across the IoT application landscape, and chipset and module manufacturers will seek to attain customer loyalty as early as possible,” added Budd.
These insights are drawn from ABI Research’s report on 5G RedCap Standards and Chipsets for IoT applications.
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