5G RedCap (Reduced Capability) is a 5G technology feature designed to support devices with lower complexity and cost compared to traditional 5G devices. It’s aimed at addressing the needs of devices that don’t require the full bandwidth and speed of 5G but can still benefit from its lower latency and improved reliability compared to LTE.

New Omdia insights into 5G technology have forecast that 5G RedCap (Reduced Capability) will surge by 66% CAGR to reach 963.5 million connections by 2030.

These findings highlight the growing influence of 5G technology on IoT (Internet of Things) use cases, as well as the industry’s increasing readiness for RedCap and eRedCap solutions.

As 4G networks begin their gradual phase-out over the next decade, RedCap and its enhanced counterpart, eRedCap (enhanced Reduced Capability), are poised to take over from current LTE Cat-1 to Cat-4 devices. The latest 3GPP Release 18 introduces eRedCap, designed to offer further reduced capabilities and lower data rate requirements, making it an ideal choice for cost-effective IoT applications. Omdia predicts this evolution will follow the path of RedCap, but with a slight delay of a year or two, helping bridge the gap as industries transition from 4G to 5G technologies.

Alexander Thompson, Senior Analyst, IoT  stated,

“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.”

“We expect 5G eRedCap to follow a similar path addressing use cases that demand reduced complexity and lower performance thresholds.”

The report from Omdia examines the ongoing hardware launches and global trials, reflecting growing interest in 5G RedCap. Companies across various sectors are beginning to deploy this technology, anticipating its wide-scale adoption in the coming years.

One key differentiator between 5G and its predecessor is the wealth of innovative use cases it has enabled since its launch in 2019. Omdia’s latest report delves into the top 10 IoT use cases where 5G has made the most impact. The report evaluates these cases based on market impact, technical complexity, implementation timeframe, revenue opportunity, and vendor ecosystem readiness.

The new Omdia research outlines the current progress of 5G Standalone (SA) rollouts and their significance in enabling large numbers of IoT connections. It also discusses the monetization of 5G network APIs, the status of private 5G networks and their role within the 5G network landscape and the anticipated development of network slicing.

Key Features of 5G RedCap:

1. Reduced Data Rate: Devices using 5G RedCap have lower maximum data rates, which reduces power consumption and the cost of components.
2. Simplified Design: These devices have a simpler design, targeting IoT, wearables, and other use cases where full 5G speed isn’t necessary.
3. Lower Cost: By cutting down on hardware requirements, 5G RedCap enables cheaper devices, making it ideal for massive IoT deployments.
4. Optimized Power Usage: It balances performance and power efficiency, which is beneficial for battery-powered devices.

Applications:

• Smart wearables (e.g., smartwatches, fitness trackers)
• Industrial IoT (e.g., sensors, asset tracking)
• Healthcare devices (e.g., medical monitoring tools)
• Smart meters and utility grids

5G RedCap is a part of the ongoing evolution of 5G, allowing for a wider range of device types and use cases, ultimately accelerating the adoption of 5G across various industries.

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