Internet of things (IoT) has become an integral part of our lives, connecting devices and enabling seamless communication across various domains. From smartphones and wearables to industrial sensors, the IoT ecosystem is growing at an unprecedented pace. As this growth continues, the demand for network solutions that can efficiently manage connectivity while minimising complexity has surged. Unlike traditional mobile technologies, many IoT devices do not require advanced capabilities, paving the way for a breakthrough technology known as Reduced Capability (RedCap).

RedCap, introduced in the 3GPP Release 17 specifications, is a streamlined version of 5G technology designed to connect IoT devices more efficiently and cost-effectively. By reducing the capabilities needed, RedCap enables smaller device form factors, extended battery life and lower costs. This innovation broadens the scope of 5G adoption, creating opportunities across various industries. RedCap bridges the gap between low power wide area (LPWA) networks and ultra-reliable low-latency communication, simplifying 5G integration for IoT applications.

According to Counterpoint Research, 5G RedCap modules are expected to account for 18 per cent of total cellular IoT module shipments by 2030. This growth is driven by its potential in developing nations, where affordability is critical for technology adoption. A Juniper Research report highlights that telecom operators could generate $400 billion in 5G service revenue by 2024, with RedCap and 5G-Advanced emerging as key technologies to attract high-spending IoT users.

Benefits

5G RedCap offers significant advantages for IoT applications, including:

  • Higher peak data rates: With support for much higher peak data rates, 5G RedCap facilitates applications requiring greater data throughput, such as video surveillance and smart grid monitoring.
  • Lower latency: RedCap provides latency comparable to existing 4G LTE technologies, which is significantly lower than most LPWA technologies such as narrow band IoT. This makes it ideal for use cases demanding near-real-time data communication, such as industrial automation and smart grid operations.
  • Enhanced power effciency: By improving power efficiency, 5G RedCap can extend the battery life of IoT devices. This is particularly critical for battery-operated devices such as wearables and sensors.

Moreover, leveraging the evolution of 5G networks towards standalone (SA) architecture, RedCap is designed to bring the benefits of 5G to new radio consumers, as well as enterprise and industrial devices. It delivers reliable connectivity for devices with low bandwidth needs, combining the key advantages of 5G with reduced cost and complexity, making it an attractive solution for diverse IoT applications.

Applications of RedCap

With the advent of 5G SA networks, RedCap technology is transforming connectivity by offering affordable, efficient 5G solutions for industrial and consumer use cases. RedCap bridges the gap between high-performance 5G devices and cost-sensitive applications, unlocking vast possibilities in multiple domains.

  • Smart wearables and health monitoring: RedCap powers fitness trackers, smartwatches and medical devices equipped with sensors for real-time health monitoring. These innovations enhance proactive healthcare management and personalise health services.
  • Industrial IoT and wireless sensors: In industrial settings, RedCap allows wireless sensors to monitor machinery, assets and supply chains, improving productivity and safety. Its affordability makes it ideal for smart factories, minimising downtime and optimising resources.
  • Video surveillance: AI-powered RedCap cameras enhance security through real-time video streaming, securing factories, buildings, public spaces and critical infrastructure.
  • Smart grids: RedCap supports real-time monitoring of power grids, boosting energy efficiency and enabling a transition to sustainable networks.
  • Extended reality (XR): RedCap’s low latency and power efficiency fuel affordable AR/VR devices, making immersive experiences more accessible in education, gaming and enterprise training.

RedCap technology is also transforming digital connectivity by enabling cost-efficient 5G solutions for fixed wireless access and customer premises equipment. This innovation is particularly beneficial in regions with limited broadband infrastructure, helping bridge the digital divide. By providing seamless internet access, RedCap enhances remote education and work opportunities in underserved communities.

Additionally, RedCap is empowering affordable laptops, such as Chromebooks, with integrated 5G connectivity. This ensures uninterrupted internet access for both educational and enterprise users, especially in areas lacking robust Wi-Fi networks. Wi-Fi base stations equipped with RedCap technology also experience reduced latency and improved efficiency, which enhances connectivity in homes and offices. These advancements ensure reliable, high speed internet access, fostering productivity and inclusivity across various sectors.

Beyond this, RedCap is gaining momentum in emerging applications such as micro-mobility solutions, battery-powered sensors and tracking devices. It is being used to monitor factory pipelines, manage charging stations and optimise utility networks. With its adaptability, RedCap supports smooth transition from LTE to 5G, expanding the IoT ecosystem with minimal disruptions and unlocking new possibilities for innovation.

RedCap in India: A transformative opportunity

India stands on the threshold of a telecommunications revolution, with RedCap technology set to make 5G connectivity more accessible across various sectors.

In October 2023, Bharti Airtel and Ericsson successfully tested Ericsson’s pre-commercial RedCap software in partnership with Qualcomm Technologies. The testing utilised Qualcomm’s 5G RedCap test module and was conducted on a 5G time division duplex network. However, the absence of a robust RedCap device ecosystem in India means there are currently no 5G RedCap use cases in the country.

Despite this, RedCap holds immense potential to bridge India’s digital divide, particularly in rural and remote areas lacking 5G coverage. By filling the gap between 4G and 5G, RedCap can enhance IoT applications and foster the expansion of the 5G ecosystem. This transformative technology will enable a wider range of devices to connect to 5G networks, paving the way for a more inclusive and connected digital future in India.

Challenges in RedCap device testing

Testing RedCap devices presents several challenges due to their compact design. Key considerations include handling limited bandwidth, fewer antennas and various modulation schemes, as well as ensuring that the network can efficiently manage these devices with precise access control.

RedCap devices require optimised protocol efficiency, including streamlined signalling flow, shorter sequence numbering and power-efficient transmission strategies. Overcoming these challenges allows RedCap devices to seamlessly integrate into the 5G ecosystem while ensuring network efficiency. Performance testing is also crucial, with throughput measurements needed across different environments such as urban, mobile, industrial and rural areas to meet performance standards.

Recent collaborations, such as the interoperability tests between Samsung and MediaTek over virtualised RAN, have highlighted RedCap’s potential to boost energy efficiency and battery life, contributing to a more sustainable 5G ecosystem.

Enhanced RedCap (eRedCap): Expanding opportunities

Unlike RedCap, eRedCap, introduced with 3GPP’s Release 18, has a lower peak data rate (10 Mbps compared to RedCap’s 225 Mbps) and optional reduced baseband bandwidth (5 MHz versus 20 MHz for data channel transmissions). These changes enable lower power consumption and reduced costs, making eRedCap an attractive option for a wide range of IoT devices. By offering simpler functionality and lower performance requirements, eRedCap opens up new opportunities for 5G IoT applications.

While RedCap remains suited for mid-tier use cases, eRedCap targets less complex scenarios, greatly expanding the potential market for 5G IoT devices and presenting a significant growth opportunity.

The way forward

The RedCap device ecosystem is rapidly gaining momentum, with more module releases becoming available for integration into various devices. The first RedCap products were launched in 2024, and ongoing testing is currently focused on applications such as inspection and surveillance cameras, as well as low-cost routers and laptops equipped with RedCap technology.

In 2025, the RedCap market is expected to expand into both consumer and enterprise segments, with the launch of voice-enabled wearables, industrial gateways and telematic devices. In October 2024, Omdia’s insights into 5G technology projected that 5G RedCap would grow at a remarkable compound annual growth rate of 66 per cent, reaching 963.5 million connections by 2030. This highlights the growing impact of 5G technology on IoT applications and the increasing readiness of the industry to adopt RedCap and eRedCap solutions.

Net, net, RedCap is set to broaden the 5G device ecosystem, offering attractive opportunities for both consumers and industries, from both a device and a network perspective.