/ THE FUTURE OF 5G REDCAP
By Benjamin Alvarez
Wireless Connectivity & RF Field Applications Engineer for EBV, an Avnet company specializing in semiconductor distribution in Europe
Powering the expansion of 5G devices
Market adoption of 5G wireless networks has been slower than expected. In fact, outside of the high-bandwidth applications around smartphones, 5G interest is still quite limited due to the high costs, limited coverage and lack of a need for some advanced features.
To accelerate the expansion of 5G into the industrial, medical, home and buildings, and security markets, 3GPP introduced the Reduced Capability (RedCap) standard in 2021. 3GPP stands for the 3rd Generation Partnership Project, which brings together seven telecom standards development organizations.

THE MOVE TO 5G
5G RedCap, also known as 5G NR-Light or New Radio-Lite, is a lighter version of the 5G standard, bridging the gap between 4G and 5G. It targets use cases with minimum hardware requirements, where high data rate, ultra-low latency or even extremely low power are not critical, but there is a need for reasonable throughput.
A RedCap device is much simpler compared to baseline 5G devices defined by the 5G Release 15 standard. The silicon is less complex and, in the end, less expensive.
A RedCap device with the least complexity can work with a single receiving antenna rather than two, making for easier integration and lower cost. Some low-power features are also supported like radio resource management (RRM) relaxation (Micro Sleep State) and extended Discontinuous Reception Mode (eDRX). It will enable new cases including static objects, devices that are mainly uploading data to the cloud will benefit from these power-saving modes.
Coming soon: Enhanced Reduced Capability (eRedCap), all the benefits of RedCap with a smaller throughput using the same 5G SA network.



Why should semiconductor manufacturers and OEMs pay attention?
RedCap and eRedCap technologies are the future generation of mid-end cellular IoT connectivity. They will replace LTE CAT 4 in the coming years and LTE CAT 1 later. Industrial, medical and automotive markets are looking for longevity. It’s still too early to discuss 4G sunset. But it is time to say that from a cellular network and chipset point of view, new evolutions on 4G are over.
RedCap increases the addressable 5G market because it solves the functional “middle ground” between high-performance 5G and low-end cellular communication like LTE-M and NB-IoT. Some use cases are already well known and covered by LTE; new ones are coming.
5G RedCap presents an exciting opportunity for OEMs and semiconductor manufacturers to innovate, diversify their product offerings, and contribute to the growing ecosystem of efficient IoT connectivity.
Market opportunities
5G RedCap technology addresses emerging market use cases that are not adequately served by existing advanced 5G standards: NB-IoT, Cat-M1 and of course 4G.
5G RedCap chipsets are already available and poised for growth. According to the Global Cellular IoT Module Forecast, 5G RedCap modules will constitute 18% of total cellular IoT module shipments by 2030, showing a significant market potential, particularly in developing nations where the cost is key to wide technology adoption for digital transformation.
Designed with a focus on mid-tier IoT devices such as gateways and industrial sensors, RedCap technology delivers reduced data flow and dependable connectivity while providing power consumption optimization, which provides a substantial extension in device battery life. RedCap technology delivers reduced data flow and dependable connectivity while providing power consumption optimization, which provides a substantial extension in device battery life.
5G RedCap’s flexibility and network advantages, including lower latency, higher speeds and power optimizations compared to previous LTE generations, position it as a superior choice for future mass IoT deployment.

BENEFITS FOR IOT
5G RedCap offers several benefits for IoT applications, including:
HIGHER PEAK DATA RATE
5G RedCap can support peak data rates three times higher than LTE Cat 4. This means that 5G RedCap can support applications that require more data throughput.
LOWER LATENCY
5G RedCap offers comparable latency to existing 4G LTE technologies. This means that 5G RedCap can support applications that require near real-time data communication, such as industrial automation and smart grid applications.
IMPROVED POWER CONSUMPTION
5G RedCap can help to improve the power efficiency of IoT devices, which can extend the battery life of these devices.
USE CASES
Typical use cases will be in industrial, enterprise and consumer applications where there is major market potential:
- Smart wearables (smart watch, low-end XR glasses)
- Video surveillance
- Medical devices, health monitors
- High-end wireless
- Utility / smart grid / gateways

CONCLUSION
5G RedCap is a new 5G standard that is designed to address the use cases between the high-speed enhanced mobile broadband (eMBB), the ultra-reliable low latency communications (uRLLC) and the low throughput and battery efficient Massive Machine-Type Communication (mMTC) technologies.
5G RedCap is well-suited for a wide range of IoT applications and will play a significant role in future IoT deployments. For the time being, LTE Cat 1, LTE Cat 1 bis and Cat 4 are the most suitable for those IoT scenarios.
The first RedCap chipsets are available, offering the most advanced RedCap features and LTE fallback and they are not sold in similar quantities compared to LTE chips. RedCap modules are de facto a bit more expensive than traditional Cat 4 modules. As we discussed earlier, it will change in the coming years with the large availability of standalone 5G.
5G RedCap’s flexibility and network advantages, including lower latency, higher speeds and power optimizations compared to previous LTE generations, position it as a superior choice for future mass IoT deployment.
EBV Elektronik, an Avnet company, was founded in 1969 and specializes in European semiconductor distribution.

ABOUT THE AUTHOR

Benjamin Alvarez
Wireless Connectivity & RF Field Applications Engineer for EBV, an Avnet Company.
Benjamin provides technical support to customers implementing wireless communication during the development of their next-generation products across Southern Europe.