5G RedCap will be increasingly relevant for cellular IoT

The Internet of Things (IoT) has always piqued the interest of mobile operators, who for years have been hoping for an increase in machine-to-machine connections, additional revenue and new business opportunities using their infrastructure and support systems to connect and help manage IoT devices. This wish has only materialised for a few large operators, but 5G RedCap is a new hope for the sector.

Designed to meet a variety of use cases, 5G RedCap, short for 5G Reduced Capability; also called 5G NR-Light, adds a new dimension to IoT connectivity. The technology represents a complete 5G standard, included in the 3GPP version 17 guidelines.

The GSMA, Ericsson and other important companies in the sector are highly valuing the ability of 5G RedCap technology to provide a new type of service in the IoT area, which falls between long-range low-speed network solutions and full 5G. After all, it is designed to serve specific IoT applications with slower than normal 5G data connections (but still faster than traditional IoT), offering downlink speeds of up to 150 Mbit/s and uplink speeds of up to 50 Mbit/s.

In addition, 5G RedCap promises to simplify complexity, reduce energy consumption and improve spectral efficiency compared to current IoT standards, while maintaining the high levels of latency and reliability offered by 5G.

Telecoms companies see 5G RedCap as an alternative to splitting up the 5G spectrum (and later 6G), fragmenting it in a more detailed way and at a more affordable cost. This way, even without many of the ‘full’ features, there is less chance of cannibalisation of regular 5G services.

Use cases

According to the ABI Research team, remote monitoring and control devices, video surveillance and security, as well as wireless terminals, are expected to be the first to adopt 5G RedCap: according to the research company, between 2024 and 2029, around 50 million RedCap modules are expected to be shipped in these specific application segments, representing 58 per cent of the IoT RedCap market.

5G RedCap caters for applications where ultra-low latency is not a critical requirement, but reasonable throughput is essential. It is therefore suitable for a wide range of IoT applications, including:

• Wireless industrial sensors: 5G RedCap can be used to connect a network of wireless industrial sensors to monitor and control machinery and equipment. This can help improve efficiency and safety in industrial environments.
• Video surveillance: 5G NR-Light can be used to transmit video from security cameras in real time. This can help improve security and deter crime.
• Smart grids: 5G RedCap can be used to monitor and control the electricity grid. This can help improve the efficiency and reliability of the grid.
• Smart wearables: 5G RedCap can be used to connect smart wearables such as fitness trackers and smartwatches. This can help people monitor their health and fitness.

According to Jonathan Budd, an analyst at ABI Research, RedCap is seen primarily as a technological alternative to facilitate the transition from LTE to 5G. He points out that 5G RedCap is arousing interest in various IoT sectors, especially in video surveillance devices and fixed terminal routers and gateways, which are expected to be the first launches in 2024.

Devices with longer lifecycles are likely to migrate to 5G RedCap in the near future, allowing manufacturers to future-proof their products and minimise uncertainties about the durability of the 4G network.

Adoption in China tends to push the technology to flourish in Western markets over the next few years. ‘2024 will set the stage for wider adoption of 5G RedCap,’ comments Ari Lopes, service provider practice leader for the Americas markets at Omdia, adding that it is a way of monetising 5G, as it addresses the needs of high-bandwidth, low-latency use cases and low-bandwidth, low-power use cases.