When the first commercial 5G networks were launched five years ago, there was a palpable sense of global excitement. Designers and operators wondered what possibilities this new technology would bring to the IoT world, perhaps recalling the significant and relatively rapid transition from 2G and 3G to 4G networks that began over a decade ago in the IoT market.
In the world of technology, predicting how advancements will unfold is not easy. This uncertainty arises in part due to the many players involved. In the case of 5G for IoT applications, the reality has turned out to be different from what was anticipated based on previous developments. The main difference is that 5G for IoT applications is taking off more slowly.
To help accelerate the migration of more applications from 4G to 5G, an additional specification was created. 5G RedCap (an abbreviation of ‘reduced capability’) aims to provide the IoT ecosystem with the right features and price-to-performance ratio to facilitate a broader adoption of 5G. The full potential of this specification is starting to reveal its benefits in an environment still in the early stages of technology migration.
This article explores ten key points about 5G RedCap and its ecosystem. It discusses the current state of the environment, how 4G LTE specifications address IoT requirements nowadays, and 5G RedCap’s role in bridging the gap between 4G and 5G.
1. 5G is at the quiet evolution phase in the Gartner hype cycle.
Decades of development have shown that technological evolution occurs in various stages. Through its hype cycle framework, the advisory firm Gartner identifies maturity, adoption, and social application as key phases in technology development. Within this cycle, there is a phase known as the ‘slope of enlightenment’, the quiet evolution where technology has already moved beyond the initial turbulent phases, including disillusionment, and is ready to take off. This is precisely where 5G seems to be right now.
2. More investment in 5G advanced technologies is needed.
The capabilities of 5G for IoT are enormous. While 5G’s ability to transmit data at higher speeds is its most well-known benefit, the advantages extend beyond this. Services like network-as-service and network slicing, which have not been entirely explored so far, are still awaiting the 5G network to operate at its full potential. Yet, to see this come true, investing in advanced 5G technologies such as standalone networks (SA) is necessary. The RedCap standard is only compatible with 5G SA networks, and for it to succeed, these networks must become more widely available than they are today.
3. 5G IoT connections and their slow growth.
This may be the most crucial factor affecting the 5G roll-out. So far, 5G deployments have primarily focused on delivering higher data rates to consumer smartphones, an attribute with limited demand in IoT applications. Most IoT connections involve use cases requiring ultra-low to medium data rates. As a result, there has not yet been a relevant upgrade path for 4G IoT applications to transition to 5G technology.
4. LTE specifications currently cover IoT design requirements.
LTE specifications such as LTE Cat 4, LTE Cat 1, LTE Cat 1bis, LTE-M, and the NB-IoT standard continue to fully satisfy the demands of most IoT designs. LTE Cat 1 and Cat 1bis serve many IoT applications, including smart metering, asset tracking, fleet management, mobile payment systems, and industrial IoT. These applications perform effectively with medium data speeds and moderate latency.
For applications requiring higher data rates, LTE Cat 4 is a better fit. Its environments include mobile broadband, industrial IoT, healthcare, and more. Typical applications include portable routers, telematics, remote security cameras, and remote industrial equipment. LTE-M and NB-IoT are cellular IoT standards designed for applications that require long battery life where data speeds are not critical. Examples include asset tracking, smart city infrastructure, smart metering, environmental monitoring, and industrial monitoring.
5. The myth of 5G upgradeability.
Despite the possibility of implementing LTE-M and NB-IoT standards on a 5G core network, there are currently no tangible examples, as operators have not announced any network updates for future compatibility with these LPWA technologies. It appears that both standards will continue to operate on 4G RAN and 4G EPC networks for the remainder of their lifetimes, with no expectation of migration to a 5G core.
6. A migration path to 5G networks.
For medium data rate IoT applications, where specific speeds or latencies are not a priority, a migration path to 5G networks was established with the introduction of the 3GPP Release 17 RedCap specification in 2022. However, initial configurations of RedCap exceed the capabilities of LTE Cat 4, and it remains to be seen how widely IoT applications will adopt this first generation of RedCap.
7. Is 5G RedCap the missing link for a smooth transition?
Technologies like LTE-M and NB-IoT were explicitly designed with capabilities that IoT applications require, including extended battery life, the ability to connect many devices simultaneously, low to ultra-low data rates, and enhanced in-building coverage. These features, however, have not been the focus of the RedCap specification.
8. 5G eRedCap
Release 17 RedCap 3GPP introduced the possibility of reducing complexity and cost compared to full-spec 5G eMBB (enhanced Mobile Broadband) implementations. Building on this, Release 18 3GPP has further advanced these reductions with eRedCap, the next RedCap generation.
The main differences between RedCap and eRedCap lie in the maximum data channel bandwidth and peak downlink data rate. RedCap supports a maximum bandwidth of 20 MHz and a peak downlink rate of 220 Mbps, while eRedCap supports a maximum bandwidth of 5 MHz and a peak downlink rate of 10 Mbps. These changes should enable eRedCap to address IoT applications currently well-served by 4G LPWA solutions, where lower costs and extended device battery life are essential.
9. RedCap, the future leading cellular IoT platform.
RedCap technology is expected to become a leading cellular IoT technology in the coming decade. As an increasing number of mobile networks transition to 5G SA architecture, it will become increasingly necessary for IoT devices to adopt technologies like RedCap that support 5G SA networks. u-blox anticipates that RedCap and eRedCap will serve more than 15% of annual cellular IoT units by 2030.
10. Future-proof solutions and RedCap.
2024 has seen the emergence of 5G RedCap in use cases such as consumer wearables and certain long-lived industrial IoT applications. The search for future-proof solutions will be a primary driver for early adopters of 5G RedCap in some sectors, as it provides continuity in connectivity and extends the lifecycle of specific devices.
With continued complexity reduction, we should see more widespread deployment of 5G IoT devices in a few more years. 5G RedCap is expected to be a key driver of the transition from 4G to 5G technology for many IoT applications.
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