Recent data indicates that 5G technology is significantly influencing IoT use cases, alongside the industry's increasing readiness for Reduced Capability (RedCap) and enhanced RedCap (eRedCap) solutions.
As 4G networks gradually phase out over the next decade, RedCap and its advanced version, eRedCap, are set to replace current LTE Cat-1 to Cat-4 devices. The latest 3GPP Release 18 introduces eRedCap, which provides even more reduced capabilities and lower data rate requirements, making it well-suited for cost-effective IoT applications.
Expected to hit 963.5 million by 2030, 5G RedCap connections are forecast to grow at a 66% compound annual growth rate (CAGR). Omdia predicts that eRedCap will follow a similar trajectory to RedCap, with a slight lag of one to two years, helping to bridge the gap as industries shift from 4G to 5G technologies.
5G RedCap in the Middle East
At present, companies across various sectors are beginning to deploy RedCap technology, anticipating its wide-scale adoption in the coming years. In the Middle East’s telecommunications landscape, operators have been actively conducting trials for this new technology since late last year until present.
In October 2023, stc, Nokia, and MediaTek achieved a region-first milestone following the successful trial of 5G RedCap devices, using a 5G standalone (5G SA) network and n1 FDD band. This represents an important step in bringing new 5G capabilities to Saudi Arabia and the advanced GCC market.
In December 2023, Nokia and du successfully completed the UAE's first 5G-Advanced RedCap trial on a commercial network. Similarly, in Bahrain, stc launched the country’s first RedCap use case trial in March 2024.
Additionally, reflecting its unwavering commitment to enhancing Oman’s digital infrastructure, Omantel successfully conducted a laboratory trial of 5G RedCap in September 2024.
Since 2019, 5G has enabled a wide range of innovative use cases compared to previous generations. With its advancement, the ongoing deployment of 5G standalone (5G SA) networks has greatly accelerated the growth of IoT connections at-scale and contributed to 5G RedCap’s flourishing integration.