5G RedCap technology is projected to account for nearly one third of all cellular IoT connections by 2030, surpassing 4G as the leading platform. With higher revenue potential and improved capabilities, RedCap is set to transform industries and drive IoT innovation.
Cellular IoT Poised for Robust Growth with 5G RedCap Technology
( Credit to: Iottechnews )
Cellular IoT is set to experience significant growth over the next decade, with the emergence of 5G RedCap (Reduced Capability) as the dominant connectivity technology for low-power wide-area networks (LPWANs).
According to a report by ReTHINK Research, the 5G RedCap standard and its extended variants are projected to account for nearly one third (30.17%) of all cellular IoT connections by 2030. This growth will primarily come at the expense of retiring 2G networks and gradually declining 4G IoT protocols.
The Rise of 5G RedCap in Cellular IoT
The commercial availability of the first RedCap devices is expected in 2024, with accelerated growth anticipated after the introduction of eRedCap around 2026. Rethink Research predicts that RedCap technology will surpass 4G as the leading cellular IoT platform between 2032-2033.
One of the key advantages of 5G RedCap is its higher revenue potential per connection compared to existing IoT protocols. By 2030, RedCap is forecasted to generate 61.3 percent of all cellular IoT revenue ($16.6B out of $27.1B) while only accounting for 30 percent of connections.
Geographical Distribution of Cellular IoT
In terms of geographical distribution, the Asia Pacific (APAC) region is expected to continue dominating the IoT landscape, representing 61 percent of all connections by 2030. This dominance is largely attributed to the early massive deployments of NB-IoT devices in China. As saturation approaches in China, India's growth will help offset some of the decline.
ReTHINK Research's forecast indicates a positive outlook for 4G CAT-M and NB-IoT in the near term. Standardization efforts are currently underway to enhance NB-IoT with 5G alignment, support for non-terrestrial networks (NTNs), transparent roaming, and other advancements.
The Future of Cellular IoT with 5G RedCap
While 4G IoT currently holds the top position, 5G RedCap is poised to take over within the next decade. This timing aligns with the sunsetting of 2G and 3G networks, providing a clear pathway for the adoption of 5G technology to enable the next wave of IoT innovation.
In conclusion, the cellular IoT market is set for robust growth, driven by the emergence of 5G RedCap technology. With its higher revenue potential and improved capabilities, RedCap is positioned to become the leading cellular IoT platform in the coming years. As the Asia Pacific region continues to dominate the IoT landscape, the deployment of RedCap and its variants will further fuel the expansion of IoT connections. The future of IoT looks promising, with 5G RedCap at the forefront of driving innovation and transforming industries.
