5G RedCap IoT modules to ship 80 million units

ABI Research has projected a significant shift in the cellular IoT landscape, with shipments of 5G Reduced Capability (RedCap) modules expected to reach 80 million units between 2024 and 2029. Of this total, enhanced RedCap (eRedCap) modules are anticipated to make up 71%, highlighting a swift transition towards cost- and power-optimized 5G connectivity for IoT applications.

This development holds particular relevance for eeNews Europe readers, as it signifies a major migration path for European IoT device manufacturers currently utilizing LTE Cat-1 or Cat-4 towards future-proof, scalable 5G designs. The progression of RedCap and eRedCap could potentially impact chipset selections, network planning, and IoT module integration across various embedded and industrial applications.

5G RedCap: Bridging LTE and 5G for IoT

Introduced in 3GPP Release 17, 5G RedCap was designed to bridge 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.

Jonathan Budd, Industry Analyst at ABI Research, explained, “5G RedCap is a series of network and device optimizations that simplifies device complexity, serving as a natural successor to LTE Cat-4 and LTE Cat-6. It offers an affordable pathway to 5G for IoT device OEMs that do not require the full spectrum of 5G capabilities.”

ABI Research notes that major silicon vendors like Qualcomm, MediaTek, UNISOC, and ASR Microelectronics are already entering the RedCap chipset market, driving adoption across the IoT ecosystem.

eRedCap: Capturing Majority Share of IoT Modules

The next-generation enhanced RedCap (eRedCap), introduced in Release 18, further reduces device complexity and cost, creating new opportunities for lower-tier IoT devices. ABI Research forecasts that eRedCap modules will make up 56 million of the total 80 million RedCap shipments by 2029.

“As a replacement for LTE Cat-1 and Cat-1bis, eRedCap will find wide applications in connecting devices across the IoT landscape, with chipset and module manufacturers aiming to secure customer loyalty early on,” Budd added.

Companies like Sequans have already announced eRedCap chip developments, indicating a competitive race among semiconductor manufacturers to address this rapidly expanding market segment.

These insights are derived from ABI Research’s 5G RedCap Standards and Chipsets for IoT Applications report, part of its IoT Hardware & Devices research service.