Jonathan Budd
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The Fast Mode (2024-10-22)
Jonathan Budd, Industry Analyst at ABI Research
While device OEMs are showing a keen interest in 5G RedCap, IoT revenues will likely remain limited in the short term due to excessive module pricing. In 2024, 5G RedCap modules are expected to sell at around the US$50 mark, equating in some cases to a three-fold price premium on LTE Cat-4 modules.
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RCR Wireless News (2024-10-17)
The company reckons it will take until RedCap module prices halve, in 2027, and also until the arrival of further-reduced (enhanced) RedCap (eRedCap) modules at a lower price-point in 2026, for the sales to jump. The latter will enter the market at a more manageable 25 percent premium versus current LTE Cat-1 modules, which they rub up against in terms of functionality – and compared with the 300 percent premium for RedCap modules currently, versus Cat-4 units. “Most IoT OEMs will not pay [much more] for a technology they do not yet need,” remarked Jonathan Budd, industry analyst at ABI Research.
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IoT News (2024-10-17)
Jonathan Budd, Industry Analyst at ABI Research, said: “While device OEMs are showing a keen interest in 5G RedCap, IoT revenues will likely remain limited in the short term due to excessive module pricing. In 2024, 5G RedCap modules are expected to sell at around the $50 mark, equating in some cases to a three-fold price premium on LTE Cat-4 modules.”
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Electronics 360 (2024-09-11)
“5G RedCap is a series of network and device optimizations that strips back device complexity, acting as a natural successor to LTE Cat-4 and LTE Cat-6,” said Jonthan Budd, industry analyst at ABI Research. “It is a means of providing an affordable pathway to 5G for IoT device OEMs that do not require the full spectrum of 5G capabilities. The mid-tier LTE Categories have proven valuable in connecting IoT devices; RedCap delivers LTE-equivalent throughput performance, with assurance of network longevity into the 5G era.”
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SDX Central (2024-09-10)
“5G RedCap is a series of network and device optimizations that strips back device complexity, acting as a natural successor to LTE Cat-4 and LTE Cat-6,” ABI Research analyst Jonathan Budd wrote. “It is a means of providing an affordable pathway to 5G for IoT device OEMs that do not require the full spectrum of 5G capabilities. The mid-tier LTE Categories have proven valuable in connecting IoT devices; RedCap delivers LTE-equivalent throughput performance, with assurance of network longevity into the 5G era.”
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TelecomTV (2024-08-29)
Such developments offer opportunities for mobile operators and IoT device manufacturers looking for the next wave of growth. The team at ABI Research expects devices in remote monitoring and control, video surveillance and security, and fixed wireless terminals to be the first to migrate to 5G RedCap: Between 2024 and 2029, approximately 50 million RedCap module shipments are forecast across these application segments, equating to 58% of the IoT RedCap market, the research firm noted recently.
“RedCap is mostly considered as a replacement technology, to provide an affordable migration pathway from [4G] LTE,” according to Jonathan Budd, industry analyst at ABI Research. “5G RedCap is drawing interest across the IoT value chain, with video surveillance and fixed wireless terminal routers and gateways dominating the first device launches in 2024. Devices with lifecycles upwards of eight years are more likely to migrate to 5G RedCap in the near term. Doing so allows manufacturers to future-proof their devices, offsetting some uncertainty surrounding 4G network longevity. There is also strong interest in 5G RedCap from auto OEMs [original equipment manufacturers] in China and Europe to connect entry-level vehicles,” added Budd.
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RCR Wireless News (2024-08-29)
The telecom industry is already well aware of the benefits of RedCap technology for a number of use cases such as IoT and Fixed Wireless Access (FWA), Jonathan Budd, industry analyst at ABI Research, told RCR Wireless News.
“The majority of cellular hardware in the IoT is supplied by module vendors. All vendors are keenly aware of 5G RedCap and are in constant communication with semiconductor manufacturers for the integration of new modem chipsets into new modules. The vendors can then advise their IoT device OEM customers on the most appropriate technology to choose,” Budd said.
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RCR Wireless News (2024-08-20)
Jonathan Budd, industry analyst at ABI Research, said: “5G RedCap is drawing interest across the IoT value chain, with video surveillance and FWA terminals dominating the first device launches in 2024. Devices with lifecycles upwards of eight years are more likely to migrate to 5G RedCap in the near term. Doing so allows manufacturers to future-proof their devices, offsetting some uncertainty surrounding 4G network longevity.”
China and North America will move aggressively on RedCap and are expected to account for approximately 80 percent of RedCap shipments in 2029, the company reckons. Budd says: “With accelerated [standalone 5G; 5G SA] rollouts and the expectation of more imminent phasing out of LTE networks, China and the US are likely to lead the early RedCap module shipments for IoT markets.” ABI Research has a new report with more information.
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