Harnessing the potential of 5G RedCap for IoT

The demand for reliable and cost-effective IoT solutions has never been greater. Enter RedCap, a technology that is poised to revolutionise the way we approach IoT connectivity. TecFutures recently had an in-depth conversation with David Palma, the technical director of Fibocom. In this discussion, we explored the key opportunities presented by RedCap and how suppliers can position themselves to capitalize on this evolving IoT market.

You can listen to the full podcast here:

The IoT landscape has long been characterised by a divide between high-performance 5G networks and lower-power, lower-complexity solutions like LTE-M and NB-IoT. RedCap, or Reduced Capability, aims to bridge this gap by providing a streamlined version of 5G that targets IoT devices with specific requirements.

Unlike traditional 5G, which is optimised for high-bandwidth, low-latency applications, RedCap is designed to cater to IoT devices that prioritise lower data rates, reduced power consumption and simpler connectivity needs. This makes it an ideal solution for a wide range of IoT applications, from smart metering and industrial automation to healthcare wearables and fixed wireless access.

As the IoT market continues to evolve, we’re seeing a shift towards more mainstream adoption, with less tech-savvy customers with different requirements entering the fray. RedCap’s ability to provide cost-effective, power-efficient connectivity solutions positions it as a prime contender to capture a portion of this growing market.

Industry analysts estimate that by 2030, the IoT market will reach around 30 billion connections, with 5G IoT driving a substantial portion of this growth. Within this landscape, RedCap is poised to capture a share with some projections indicating that it could account for up to 30% of the cellular IoT market by 2030 and generate 50-60% of the associated revenues.

The adoption of RedCap is not uniform across all geographic regions, with some markets leading the way while others lag behind. In particular, the deployment of standalone (SA) 5G networks, which are a prerequisite for RedCap, has been more advanced in regions like China and the United States compared to Europe. However, the outlook for Europe is promising, with an estimated 15 SA networks already deployed and an additional 44-45 networks expected to come online by 2025. This suggests that the European market will soon be primed for widespread RedCap adoption, presenting an opportunity for suppliers to establish a strong foothold in the region.

To capitalize on the opportunities presented by RedCap, suppliers must understand and effectively communicate the technology’s key capabilities to potential customers. These include:

1. Network compatibility: As a 5G technology, RedCap benefits from the advanced features of 5G networks, such as network slicing, which allows for customized quality of service to meet the specific requirements of IoT devices.

2. Balanced data rates: RedCap strikes a balance between the high-bandwidth capabilities of 5G and the lower-speed needs of many IoT applications, supporting data rates in the range of a few megabits per second to 150 Mbps.

3. Power efficiency: The simplified architecture of RedCap devices, with reduced components and antenna requirements, leads to power savings and extended battery life – a consideration for IoT devices that must operate independently for extended periods.

4. Cost optimisation: The streamlined design of RedCap devices, combined with optimised network signalling and reduced hardware complexity, translates to lower overall costs for both device manufacturers and end-users.

To capitalise on the opportunities presented by RedCap, suppliers must position themselves as trusted partners in the evolving IoT ecosystem. This means staying ahead of the curve on the latest standards and technological advancements, developing a comprehensive portfolio of RedCap-enabled solutions and forging partnerships with key players in the IoT value chain.

By using their expertise, suppliers can help customers navigate the complexities of IoT deployment, offering tailored solutions that address the unique needs of different verticals and applications. This, in turn, will strengthen customer relationships and position suppliers as indispensable partners in the IoT revolution.

Fibocom is at the forefront of the RedCap revolution. With its deep industry expertise and comprehensive portfolio of 5G-enabled offerings, the company is uniquely positioned to drive the widespread adoption of this transformative technology.

Fibocom’s commitment to innovation and its close collaboration with industry standards bodies have allowed it to develop a range of RedCap-compatible modules and solutions that cater to the diverse needs of the IoT market. By using its global reach and established partnerships, Fibocom is empowering businesses and consumers to harness the full potential of RedCap, unlocking new levels of efficiency, cost-effectiveness and connectivity.