5G RedCap: the next step for massive IoT

From wearable health monitors and connected vehicles to smart meters and industrial sensors, the Internet of Things (IoT) is all around us, with the number of connected devices expected to reach 34 billion by 2028, according to the GSMA.¹ This explosion in innovation has been made possible by advances in connectivity – yet it has also revealed a fundamental problem. The connectivity options available today do not adequately serve many emerging IoT use cases.

At one end of the spectrum, lower-cost options such as NB-IoT and LTE-M are well-suited for low-power devices that only need to transmit small amounts of data. At the other end, high-bandwidth applications like autonomous driving or immersive media require more costly and energy-intensive 5G.

But there is a class of devices that requires something in between: more capability than legacy IoT networks, but not quite the full power of 5G. Consider a traffic camera that needs to stream HD footage, while operating on a battery that lasts for months. Or industrial machines that need real-time alerts without the complexity or cost that full 5G demands. Even consumer wearables such as smartwatches or rings need stable connectivity without draining the battery in a matter of hours. All of these use cases expose a connectivity gap in the IoT ecosystem. 

Fortunately, this gap is being filled by 5G RedCap.

What is RedCap?

5G RedCap, short for “Reduced Capability” (sometimes also referred to as 5G NR-Light), is a streamlined version of 5G designed to serve IoT devices in this middle ground. It hits the sweet spot between performance and efficiency, making it ideal for devices with moderate data needs but stricter cost and power constraints. 

Unlike full 5G, RedCap reduces device complexity by lowering bandwidth, antenna count, and modulation requirements. The result is a more affordable, energy-efficient connectivity solution that still runs on mainstream 5G networks, without additional infrastructure requirements. Manufacturers can simply integrate a RedCap-capable radio module into their devices.

“5G RedCap brings the power of 5G to the world of IoT – without the overhead,” says Sönke Schröder, Director Go-To-Market and Innovations at Giesecke+Devrient. “It’s a game-changer for industries that need efficient, scalable, and future-proof connectivity for millions of smart devices.”

RedCap offers several key benefits compared with existing connectivity solutions: 

• Future-proof longevity: As a 5G-native technology that will outlast upcoming LTE sunsets, RedCap ensures long-term connectivity for industrial equipment and infrastructure that will be deployed for many years.
• Enhanced data capacity: Higher-order modulation enables superior uplink performance for video-intensive applications, such as smart city cameras and industrial monitoring systems.
• Real-time responsiveness: 5G SA-based low latency supports time-critical applications such as remote-controlled industrial systems and smart grid operations.
• Extended battery life: Advanced power-saving features enable multi-year operation for industrial sensors and up to two weeks for consumer wearables such as smartwatches and smart glasses.

RedCap’s strategic value lies in delivering a higher standard of connectivity without the full overhead that comes with 5G. It bridges the gap between low-end technologies, such as NB-IoT and LTE-M, and high-performance 5G services, such as enhanced mobile broadband (eMBB). With typical throughput between 10 and 100 Mbps, it comfortably supports use cases such as video surveillance, industrial monitoring, and wearable health devices. For enterprises and device makers, this means 5G-class connectivity at a fraction of the cost and energy demand.

Given the millions of devices that could be successfully deployed with RedCap, the technology can be a major catalyst for growth across the massive IoT industry. It also makes smart cities more feasible, supporting use cases such as smart traffic management systems and improved environmental monitoring.

The consumer market will also benefit from RedCap: instead of relying on Bluetooth tethering to smartphones – still the default for many wearables – RedCap enables direct network connectivity without requiring a full 5G connection. This makes health monitors and fitness trackers truly independent, unlocking new possibilities for real-time, always-on services. 

Market momentum is building

Although RedCap was standardized by 3GPP in Release 17 back in 2022, it has only recently reached commercial maturity, with companies across different markets moving quickly to test and implement the technology. Examples of real-world deployments that have demonstrated RedCap’s potential include the following: 

• In Hangzhou, China, Huawei, China Unicom, and Dahua collaborated to deploy a private 5G RedCap network spanning large park areas, connecting thousands of devices from cameras and access control systems to environmental sensors. By combining network slicing and edge computing, the project achieved measurable results: deployment costs fell by 20%, power consumption dropped by 60%, and installation times shrank from hours to minutes.²
• In South Korea, Hyundai and Samsung ran the industry’s first end-to-end RedCap trial on a private 5G network at Hyundai’s Ulsan factory – the largest car plant in the world. RedCap enabled seamless connectivity of IoT devices – including sensors, cameras, logistics robots, and smart factory devices – ensuring reliable real-time data flows for inspection and automation. The success of this trial demonstrated how RedCap can reduce the cost and complexity across large-scale smart manufacturing.³
• In the United States, AT&T has switched on nationwide RedCap coverage, reaching more than 200 million points of presence. This lowered costs, energy demand, and bandwidth requirements, enabling new categories of connected devices across healthcare, logistics, and wearables.⁴

Together, these examples show how RedCap is opening the door to more advanced and economically viable applications.

Securing RedCap at scale

As commercial rollouts accelerate in 2025, RedCap will continue to establish itself as the go-to connectivity solution for mid-tier massive IoT deployments. Its ability to deliver scalable, affordable, and power-efficient connectivity will unlock new business models across industries – from smart manufacturing to smarter utilities and connected healthcare. 

As deployments scale, the next evolution – eRedCap (Enhanced Reduced Capability) – is already in motion. Set to be deployed in 2026, eRedCap supports devices with even more basic connectivity requirements. By covering both ends of the spectrum, RedCap and eRedCap will ensure that every device – from the simplest tracker to the most advanced factory robot – has an efficient, future-proof 5G option.

But scale also brings added complexity. Deploying millions more devices increases the surface area for potential attacks – RedCap’s efficiency gains are meaningless if security and trust are compromised. That is why secure eSIM and eUICC solutions, life cycle management, and interoperability frameworks will be critical to RedCap’s success.

With decades of expertise in enabling secure connectivity and digital infrastructure, G+D is uniquely positioned to help operators, enterprises, and device makers realize RedCap’s potential. By embedding security into every layer, we ensure RedCap can deliver the promised efficiency while guaranteeing the resilience and trust that the IoT ecosystem demands.

Published: 11/11/2025