5G RedCap Connections Forecast to Reach Nearly 1B by 2030, Omdia

A new Omdia insights report into 5G technology has forecast that 5G RedCap connections will surge to reach a notable 963.5 million by 2030, a compound annual growth rate of 66%.

These findings highlight the growing influence of 5G technology on IoT use cases, as well as the industry’s increasing readiness for RedCap and eRedCap (enhanced Reduced Capability), solutions, according to the report. 

5G RedCap is a recent addition to the 5G standards. Its devices offer a range of capabilities and performance levels, including lower complexity and cost and improved power consumption, with data transmission rate at least no slower than the LTE Cat-1 standard.

To understand the market, the Omdia report examined the ongoing hardware launches and global trials, reflecting growing interest in 5G RedCap. 

“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 of IoT at the technology research and advisory group. 

The surge in uptake is expected to revolutionize IoT use cases and accelerate the shift from 4G to 5G technologies, the company added. 

The report notes that as 4G networks begin their gradual phase-out over the next decade, RedCap and its enhanced counterpart, eRedCap are poised to take over from current LTE Cat-1 to Cat-4 devices.

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The latest 3GPP Release 18 introduces eRedCap that is designed to offer further reduced capabilities and lower data rate requirements, making it an ideal choice for cost-effective IoT applications.

Omdia predicts eRedCap will follow the path of RedCap, but with a slight delay of a year or two as industries transition from 4G to 5G technologies.

eRedCap can address use cases that demand reduced complexity and lower performance threshold, said Thompson.

Companies across various sectors are beginning to deploy the technology, anticipating its wide-scale adoption in the coming years, the report added.