Omdia's research highlights that 5G RedCap - a simplified version of 5G technology - is a breakthrough development step, expected to be widely applied starting in 2025. positioned as the optimal mid-range connection solution, RedCap serves 5G devices that do not require high-end technical specifications of Unreliable Low-Late Communications (uRLLC) or Upgraded Mobile Backup (eMBB).
In addition, RedCap also brings important benefits to ensure future compatible when the industry switches to gradually eliminating 4G networks after 2030.
Research shows that, although the initial RedCap deployment was slower than expected, 2025 has shown some promising prospects with the launch of the latest Apple Watch series integrated with RedCap technology.
In addition to this growth, eRedCap modules are expected to launch in 2026, further expanding mid-range connection options and promoting the application in more use cases.
In the future, businesses will have more connecting technology options to serve all applications. The expected launch of 5G eRedCap modules in 2026 will boost the growth of IoT mobileC connectivity in the next decade, said Alexander Thompson, senior IoT analyst at Omdia.
The auto segment will increase from 500 million connected to about 1.2 billion in the next 10 years, raising market share from 13% to 21%. Most of this growth in connectivity comes from Asia and the Atlantic region, where the auto segment will thrive thanks to the growing demand of consumers for smartphones with 5G connectivity.
