5G RedCap know-how affords IoT gadget producers an reasonably priced migration path from LTE. Nonetheless, the highway to widespread adoption could also be bumpy, in line with international know-how intelligence agency ABI Analysis.
5G RedCap, designed as a pure substitute for LTE Cat-4 and Cat-6, targets mid-range IoT units that don’t require the total capabilities of 5G. ABI Analysis forecasts that IoT RedCap module revenues will attain $1.2 billion from 2024 to 2029.
Regardless of the promising outlook, short-term adoption faces challenges.
Jonathan Budd, Trade Analyst at ABI Analysis, stated: “Whereas gadget OEMs are exhibiting a eager curiosity in 5G RedCap, IoT revenues will probably stay restricted within the brief time period on account of extreme module pricing. In 2024, 5G RedCap modules are anticipated to promote at across the $50 mark, equating in some circumstances to a three-fold value premium on LTE Cat-4 modules.”
This vital value distinction poses a significant impediment for producers.
“With out the quick risk of LTE community shutdowns, gadget OEMs are unlikely to improve, aside from units with longer lifecycles,” explains Budd. “Most IoT OEMs is not going to pay for a know-how they don’t but want; as a substitute know-how for LTE, 5G RedCap module ASPs have to be pushed down by at the very least 50% to make RedCap economically viable for producers.”
The panorama turns into extra fascinating with the introduction of eRedCap modules in 2026. These are projected to be solely 25% costlier than Cat-1 modules, starting from $10 to $15 per unit.
With extra widespread 5G Standalone protection anticipated by 2026, eRedCap migration is anticipated to realize traction extra shortly than 5G RedCap. ABI Analysis tasks cumulative eRedCap gross sales of $615 million from 2026 to 2029—primarily in safety, telehealth, point-of-sale, and distant monitoring units.
Nonetheless, 5G RedCap isn’t out of the race but.
“5G RedCap revenues are solely anticipated to surge following the discharge of optimised second-generation chipsets in 2026. Coupled with higher manufacturing volumes, we must always see 5G RedCap module ASPs halving by 2027, driving an extra wave of migration from LTE,” Budd concludes.
(Photograph by Blocks Fletcher)
See additionally: Samsung and KT to deploy personal 5G for Good Naval Port
Wish to study in regards to the IoT from trade leaders? Try IoT Tech Expo going down in Amsterdam, California, and London. The excellent occasion is co-located with different main occasions together with Cyber Safety & Cloud Expo, AI & Huge Information Expo, Clever Automation Convention, Edge Computing Expo, and Digital Transformation Week.
Discover different upcoming enterprise know-how occasions and webinars powered by TechForge right here.
