5G RedCap know-how affords IoT machine producers an reasonably priced migration path from LTE. Nonetheless, the street to widespread adoption could also be bumpy, based on 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 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, Business Analyst at ABI Analysis, stated: “Whereas machine OEMs are exhibiting a eager curiosity in 5G RedCap, IoT revenues will seemingly stay restricted within the quick time period as a result of extreme module pricing. In 2024, 5G RedCap modules are anticipated to promote at across the $50 mark, equating in some instances to a three-fold worth premium on LTE Cat-4 modules.”
This vital worth distinction poses a significant impediment for producers.
“With out the rapid risk of LTE community shutdowns, machine OEMs are unlikely to improve, apart from units 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 have to be pushed down by a minimum of 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% dearer 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 rapidly than 5G RedCap. ABI Analysis initiatives 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.
(Picture by Blocks Fletcher)
See additionally: Samsung and KT to deploy non-public 5G for Good Naval Port
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