5G RedCap know-how presents IoT gadget producers an reasonably priced migration path from LTE. Nonetheless, the street to widespread adoption could also be bumpy, in line with world know-how intelligence agency ABI Analysis.
5G RedCap, designed as a pure alternative for LTE Cat-4 and Cat-6, targets mid-range IoT gadgets 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, Business Analyst at ABI Analysis, stated: “Whereas gadget OEMs are displaying a eager curiosity in 5G RedCap, IoT revenues will doubtless 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 worth premium on LTE Cat-4 modules.”
This important worth distinction poses a serious impediment for producers.
“With out the instant menace of LTE community shutdowns, gadget OEMs are unlikely to improve, aside from gadgets with longer lifecycles,” explains Budd. “Most IoT OEMs won’t pay for a know-how they don’t but want; as a alternative know-how for LTE, 5G RedCap module ASPs should be pushed down by a minimum of 50% to make RedCap economically viable for producers.”
The panorama turns into extra attention-grabbing 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 achieve 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 gadgets.
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.
(Picture by Blocks Fletcher)
See additionally: Samsung and KT to deploy non-public 5G for Sensible Naval Port
Need to be taught concerning the IoT from trade leaders? Try IoT Tech Expo happening in Amsterdam, California, and London. The great occasion is co-located with different main occasions together with Cyber Safety & Cloud Expo, AI & Massive 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.
