-

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.

Contacts

Media Contact: Fasiha Khan Fasiha.Khan@omdia.com

Omdia

NASDAQ:TTGT

Release Versions

Contacts

Media Contact: Fasiha Khan Fasiha.Khan@omdia.com

Social Media Profiles
More News From Omdia

Omdia: Retailers to Control 47% of North America TV OS Share by 2029 as Advertising Strategies Shift

LONDON--(BUSINESS WIRE)--Retailers are forecast to control 47% of the North American TV operating system (OS) market by 2029, up from 27% in 2025, according to Omdia's latest TV Design & Features Tracker. The rapid shift underscores how retailers are prioritizing e-commerce-driven retail media advertising over traditional TV shipment leadership. This trend was a key theme at CES 2026 in Las Vegas, alongside conversational AI driven features. Globally, Omdia forecasts that the TV OS opportun...

Omdia: Advertising and Bundling to Push Latin America Media Revenues to $65 Billion by 2026

LONDON--(BUSINESS WIRE)--Latin America is emerging as one of the fastest-growing media markets globally, with revenues forecast to reach $65 billion in 2026, representing a 10.7% year-on-year growth, according to new Omdia data presented by Maria Rua Aguete, Head of Media & Entertainment at Omdia, during Content Americas. This growth significantly outpaces the US, which is expected to grow by 6.9% to $453 billion over the same period. LATAM’s expansion is being driven by the rapid adoption...

AI Drives Semiconductor Revenues Past $1 Trillion for the First Time in 2026

LONDON--(BUSINESS WIRE)--Global semiconductor revenues will exceed $1tn in 2026, marking a historic milestone for the industry, according to Omdia’s latest market analysis. This growth is being driven by the rapid surge in memory and logic IC revenues, generated by massive demand from AI market. The semiconductor revenue forecast for 2025 increased significantly to 20.3% year-over-year (YoY), reflecting stronger-than-anticipated 3Q25 results, and robust growth expected in 4Q25. Revenue growth i...
Back to Newsroom