5G RedCap IoT modules set for 80 million shipments
ABI Research forecasts a significant shift in the cellular IoT landscape, with shipments of 5G Reduced Capability (RedCap) modules projected to reach 80 million units between 2024 and 2029. Notably, enhanced RedCap (eRedCap) modules are expected to account for 71% of this total, signalling a rapid move toward cost- and power-optimized 5G connectivity for IoT applications.
For eeNews Europe readers, this development is particularly relevant as it indicates a major migration path for European IoT device manufacturers currently using LTE Cat-1 or Cat-4 toward future-proof, scalable 5G designs. The evolution of RedCap and eRedCap will potentially influence chipset choices, network planning, and IoT module integration across a wide range of embedded and industrial applications.
5G RedCap bridges LTE and 5G for IoT
Defined in 3GPP Release 17, 5G RedCap was introduced to fill the gap between high-throughput enhanced Mobile Broadband (eMBB) and low-power LPWA technologies. It offers LTE-equivalent data rates with simplified device design and lower power consumption, providing a cost-effective upgrade path to 5G.
“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,” explained Jonathan Budd, Industry Analyst at ABI Research. “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.”
According to ABI Research, major silicon vendors including Qualcomm, MediaTek, UNISOC, and ASR Microelectronics are already entering the RedCap chipset market, accelerating adoption across the IoT ecosystem.
eRedCap to capture majority share of IoT modules
The next-generation enhanced RedCap (eRedCap), introduced in Release 18, further reduces device complexity and cost, opening up new opportunities for lower-tier IoT devices. ABI Research projects that eRedCap modules will represent 56 million of the total 80 million RedCap shipments by 2029.
“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,” Budd added.
Companies such as Sequans have already announced eRedCap chip developments, indicating a competitive race among semiconductor manufacturers to address this rapidly expanding market segment.
These insights are drawn from ABI Research’s 5G RedCap Standards and Chipsets for IoT Applications report, part of its IoT Hardware & Devices research service.
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