Forecast: Explosive growth for 5G RedCap connections
October 2, 2024
Omdia insights into 5G technology forecasts that 5G RedCap (Reduced Capability) will surge by 66 per cent 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, Omdia 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.”
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