30/07/2024 | News release | Distributed by Public on 31/07/2024 03:43
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RedCap Device Launches Reveal Likely Application Markets |
NEWS |
5G Reduced Capability (RedCap) was finalized in The Third Generation Partnership Project's (3GPP's) Release 17 (R17) to cater to devices with throughput requirements sitting between those of full 5G and Low-Power Wide Area (LPWA). Enhanced Mobile Broadband (eMBB) requires the highest throughput and data rates, and lowest latency, which demands the full spectrum of 5G capabilities.
The Internet of Things (IoT) rarely needs eMBB-level performance, with such devices only required to send and receive smaller data packets, rendering full 5G unnecessary. While LPWA technologies such as Cat-M and Narrowband IoT (NB-IoT) are suitable for IoT device segments that require minimal data rates, the so called "mid-tier" of IoT devices rely on something more powerful.
5G RedCap aims to serve the middle ground between eMBB and LPWA, providing an affordable pathway to 5G. With a throughput performance of ~150/50 Megabits per Second (Mbps) Downlink (DL)/Uplink (UL), RedCap offers equivalent data rates to Long Term Evolution (LTE) Cat-4 and, in some cases, LTE Cat-6. Consequently, 5G RedCap has potential to be a natural successor for device Original Equipment Manufacturers (OEMs) currently using or planning to use these LTE categories in the future.
A multitude of connected IoT devices make use of LTE Cat-4 and LTE Cat-6, providing the suppliers of RedCap hardware with an extensive addressable market. In a recent whitepaper, Ericsson outlined likely application markets as being wearables, industrial wireless sensors, video surveillance cameras, and low-end Augmented Reality (AR)/Virtual Reality (VR) applications.
Launches of RedCap devices are now ramping up, revealing the markets that are likely to accelerate their migration to RedCap. According to ABI Research's imminent report series, 5G RedCap for the IoT, the device launches that pertain to RedCap only fall withinvideo surveillance and Fixed Wireless Terminal (FWT) applications. The report also reveals the growing interest in non-IoT verticals, with a series of FWA devices, including outdoor units and routers, and MBB devices, such as Chromebooks and MiFi devices, being released.
According to the report,as of 1Q 2021, only 34% of devices launched up to 1Q 2024 are for the IoT, with 64% made for non-IoT applications. While the RedCap market is still in its nascent stages, supply-side hardware vendors will need to consider the factors that are likely to incentivize OEMs from other IoT verticals to migrate from LTE.
Are 5G RedCap Chipsets Suited to IoT Applications? |
IMPACT |
5G Reduced Capability (RedCap) was finalized in The Third Generation Partnership Project's (3GPP's) Release 17 (R17) to cater to devices with throughput requirements sitting between those of full 5G and Low-Power Wide Area (LPWA). Enhanced Mobile Broadband (eMBB) requires the highest throughput and data rates, and lowest latency, which demands the full spectrum of 5G capabilities.
The Internet of Things (IoT) rarely needs eMBB-level performance, with such devices only required to send and receive smaller data packets, rendering full 5G unnecessary. While LPWA technologies such as Cat-M and Narrowband IoT (NB-IoT) are suitable for IoT device segments that require minimal data rates, the so called "mid-tier" of IoT devices rely on something more powerful.
5G RedCap aims to serve the middle ground between eMBB and LPWA, providing an affordable pathway to 5G. With a throughput performance of ~150/50 Megabits per Second (Mbps) Downlink (DL)/Uplink (UL), RedCap offers equivalent data rates to Long Term Evolution (LTE) Cat-4 and, in some cases, LTE Cat-6. Consequently, 5G RedCap has potential to be a natural successor for device Original Equipment Manufacturers (OEMs) currently using or planning to use these LTE categories in the future.
A multitude of connected IoT devices make use of LTE Cat-4 and LTE Cat-6, providing the suppliers of RedCap hardware with an extensive addressable market. In a recent whitepaper, Ericsson outlined likely application markets as being wearables, industrial wireless sensors, video surveillance cameras, and low-end Augmented Reality (AR)/Virtual Reality (VR) applications.
Launches of RedCap devices are now ramping up, revealing the markets that are likely to accelerate their migration to RedCap. According to ABI Research's imminent report series, 5G RedCap for the IoT, the device launches that pertain to RedCap only fall withinvideo surveillance and Fixed Wireless Terminal (FWT) applications. The report also reveals the growing interest in non-IoT verticals, with a series of FWA devices, including outdoor units and routers, and MBB devices, such as Chromebooks and MiFi devices, being released.
According to the report,as of 1Q 2021, only 34% of devices launched up to 1Q 2024 are for the IoT, with 64% made for non-IoT applications. While the RedCap market is still in its nascent stages, supply-side hardware vendors will need to consider the factors that are likely to incentivize OEMs from other IoT verticals to migrate from LTE.
eRedCap Emerges as the IoT Front-Runner, but Chipset Vendors Can Still Drive 5G RedCap Migration |
RECOMMENDATIONS |
While 5G RedCap may prove too expensive for IoT device OEMs in the near term, 3GPP's R18 details the second iteration of the RedCap standard, with enhanced RedCap (eRedCap) capabilities. These are expected to reduce device complexity sufficiently to deliver comparable performance with LTE Cat-1 and LTE Cat-1bis, with data rates of 10/5 Mbps DL/UL. LTE Cat-1 and Cat-1bis are used almost exclusively for the IoT, representing an extensive addressable market for eRedCap.
A host of IoT device OEMs have already expressed their intention to migrate to eRedCap, including in Advanced Metering Infrastructure (AMI), telehealth, remote monitoring and control, and asset-tracking. Those with LTE Cat-1 based mobile devices will be encouraged that RedCap, like LTE Cat-1, will be a coverage-based technology, relying on access to widely available 5G SA networks to enable reliable connection for its users across regionalities.
As it stands, eRedCap seems to be considered the greater market opportunity for the IoT, but as with 5G RedCap R17, whether eRedCap will gain early momentum will depend on the relative prices of the first eRedCap chipsets, expected in 2026/2027, compared to LTE Cat-1 and Cat-1bis. As chipset manufacturers develop their eRedCap offerings, they should also take the following steps to drive R17 5G RedCap in the IoT: