5G RedCap Technology Still Poised for Growth Despite Slow Enterprise Adoption, Omdia Reports

LONDON--(BUSINESS WIRE)--Despite slower-than-expected enterprise adoption, new research from Omdia finds that the market outlook for 5G RedCap (Reduced Capability) and eRedCap (enhanced RedCap) technology remains strong. These innovations are projected to significantly transform the Internet of Things (IoT) landscape, surpassing 700 million global connections by 2030, according to Omdia’s latest report “5G RedCap and eRedCap: The Current and Future State of the Market”.

Bridging the IoT Connectivity Gap

5G RedCap and eRedCap technologies deliver innovative solutions that effectively bridge the crucial gap between high-performance 5G and low-power IoT applications. Key advantages include:

• Optimized performance for mid-tier IoT applications providing a cost-effective migration path from LTE
• Reduced device complexity through simplified architecture, resulting in lower hardware costs
• Seamless integration with existing network infrastructure
• Improved power consumption for extended device longevity

Market Momentum Continues to Build

The RedCap ecosystem is rapidly evolving, driven by significant advancements from leading industry players:

• Global carriers including AT&T, T-Mobile, and BT Group have successfully completed RedCap trials
• Major chipset and module manufacturers such as Qualcomm, MediaTek, and Quectel have launched commercial RedCap modules
• Innovative use cases are emerging across healthcare, industrial IoT, and smart city applications

Future Growth Dependent on Network Evolution

While the foundation for growth is strengthening, several factors will influence the pace of 5G RedCap adoption:

• Expansion of 5G SA network deployments, which have experienced slowdowns due to economic conditions
• Anticipated reductions in hardware costs, which have yet to materialize
• Continued maturation of the broader RedCap and IoT ecosystem
• Development and clear identification of enterprise use cases designed for mass-scale deployments rather than limited device implementations

"RedCap and eRedCap technologies represent a strategic evolution in IoT connectivity," noted Alexander Thompson, Senior IoT analyst at Omdia and lead author of the report. "While adoption timelines may extend beyond initial projections, these technologies will play a pivotal role in future IoT deployments, particularly as the ecosystem matures and 5G SA networks expand globally."

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), s a technology research and advisory group. Our deep knowledge of tech markets grounded in real conversations with industry leaders and hundreds of thousands of data points, make our market intelligence our clients’ strategic advantage. From R&D to ROI, we identify the greatest opportunities and move the industry forward.