The 5G RedCap standard, finalized in the 3GPP’s Release 17, offers a streamlined pathway for device OEMs transitioning from 4G LTE to 5G, specifically for mid-range devices. This makes it a notable development for the Internet of Things (IoT) sector. Recent forecasts from ABI Research project that shipments of IoT RedCap modules will reach 80 million from 2024 to 2029. These advancements are expected to significantly impact the market, with new players and existing giants alike aiming to capture a share of this burgeoning opportunity.
ABI Research’s projections indicate a substantial market potential for 5G RedCap and its enhanced version, eRedCap. Historically, LTE Cat-4 and Cat-6 have been crucial in IoT connectivity. The new RedCap series aims to deliver similar performance with the benefits of 5G, ensuring longevity and efficiency for IoT applications. Companies like Qualcomm, MediaTek, UNISOC, and ASR Microelectronics have already shown keen interest, marking their entry into the chipset market.
RedCap and eRedCap Market Dynamics
“5G RedCap is a series of network and device optimizations 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 enhanced version, eRedCap, will take simplification a step further, thus unlocking a considerable market for IoT OEMs currently using LTE-Cat-1 and Cat-1bis. ABI Research forecasts that 56 million of the projected 80 million modules will be eRedCap, representing 71% of the total, while the remaining 23 million will be attributed to the standard 5G RedCap (R17).
Competitive Landscape
Sequans has already announced plans to develop an eRedCap chip, and other silicon vendors are expected to follow suit, making the space highly competitive. The transition from LTE Cat-1 and Cat-1bis to eRedCap will likely drive rapid adoption across IoT applications, as chipset and module manufacturers rush to capture early customer loyalty.
“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,” concluded Budd.
ABI Research’s findings are detailed in their latest report, providing comprehensive insights into the 5G RedCap standards and chipset developments for IoT applications. Companies in the IoT sector should consider these emerging trends to stay competitive and leverage the full potential of 5G RedCap technology.
The move towards 5G RedCap represents a significant shift in the IoT market, aligning with global trends towards more efficient and longer-lasting network solutions. The anticipated large-scale adoption of eRedCap and the growing interest from major industry players signal a transformative period for IoT connectivity. For stakeholders, understanding the nuances of these technologies and their market implications will be critical in navigating this evolving landscape.
