European 5G RedCap IoT Connectivity Market Forecast, 2025-2029

Description

This IDC Market Forecast offers a comprehensive analysis of 5G reduced capability (RedCap), detailing its emergence as the critical "missing middle" in cellular IoT connectivity. It provides a five-year forecast for RedCap connections and spending in Europe, examines the market context that necessitated its development, outlines the key drivers and inhibitors to its adoption, and offers strategic advice for technology suppliers navigating this evolving landscape."Positioned as the critical 5G evolution for the middle of the IoT market, RedCap promises targeted enhancements in efficiency and cost. While it will accelerate IoT development and serve as a vital migration path, much of its transformative effect will be felt in the years to come, rather than immediately." - Research Director John Gole, IoT, IDC Europe

Product Code: EUR152175125

IDC Market Forecast Figure

Executive Summary

Advice for Technology Suppliers

Prioritize Cost Reduction and Power Optimization
Enable and Accelerate 5G Standalone (5G SA) Network Deployments and Feature Enablement
Empower Cost-Effective Private 5G Network Deployments
Develop Vertical-Specific Solutions and Reference Designs
Facilitate a Smooth LTE Migration Path for IoT Devices
Champion Realistic Market Education and Awareness

Market Forecast

Market Context

The Diverse and Segmented IoT Connectivity Market
RedCap's Emergence: The Missing Piece of the 5G IoT Puzzle
Drivers and Inhibitors
- Drivers
  - Optimized Cost-Performance-Power Profile
  - Efficient Migration Path for LTE IoT Use Cases
  - Accelerating Ecosystem Maturity and Module Cost Reduction
- Inhibitors
  - Initial Higher Module Cost vs. LTE-M/NB-IoT/LTE Cat-1
  - Limited 5G Network Readiness
Significant Market Developments
Changes from Prior Forecast