5G RedCap Technology Poised for Growth Despite Slow Enterprise Adoption

Despite slower-than-expected enterprise adoption, Omdia predicts that the market for 5G RedCap and eRedCap technology will continue to grow, with global connections projected to reach 700 million by 2030. These innovations will transform the IoT landscape by bridging the gap between high-performance 5G and low-power IoT applications, with key advantages including optimized performance, reduced device complexity, seamless integration with existing networks, and improved power consumption. The RedCap ecosystem is rapidly evolving, driven by advancements from leading industry players, but future growth depends on factors such as the expansion of 5G SA network deployments, reductions in hardware costs, and the maturation of the broader RedCap and IoT ecosystem.

Despite slower-than-expected enterprise adoption, Omdia predicts that the market for 5G RedCap and eRedCap technology will continue to grow, with global connections projected to reach 700 million by 2030. These innovations will transform the Internet of Things (IoT) landscape by bridging the gap between high-performance 5G and low-power IoT applications. Key advantages include optimized performance for mid-tier IoT applications, cost-effective migration from LTE, reduced device complexity, seamless integration with existing network infrastructure, and improved power consumption for extended device longevity [1].

The RedCap ecosystem is rapidly evolving, driven by significant advancements from leading industry players. Global carriers such as AT&T, T-Mobile, and BT Group have successfully completed RedCap trials, while major chipset and module manufacturers like Qualcomm, MediaTek, and Quectel have launched commercial RedCap modules [1]. Innovative use cases are emerging across healthcare, industrial IoT, and smart city applications, further fueling market momentum.

However, future growth depends on several factors. The expansion of 5G SA network deployments, which have experienced slowdowns due to economic conditions, will influence the pace of adoption. Anticipated reductions in hardware costs have yet to materialize, and continued maturation of the broader RedCap and IoT ecosystem is necessary. Clear identification of enterprise use cases designed for mass-scale deployments rather than limited device implementations is also crucial [1].

"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" [1].

References:
[1] https://www.stocktitan.net/news/TTGT/5g-red-cap-technology-still-poised-for-growth-despite-slow-pdzxeaf6lg8x.html
[2] https://www.businesswire.com/news/home/20250708837150/en/5G-RedCap-Technology-Still-Poised-for-Growth-Despite-Slow-Enterprise-Adoption-Omdia-Reports