Global automotive technology supplier Marelli has announced the development of its Affordable 5G RedCap (Reduced Capability) technology designed for vehicle telematics systems. The solution aims to bridge the gap between existing 4G networks and full-scale 5G infrastructure at a competitive price point.
The technology delivers a 50% increase in data rates and 2.5 times lower latency compared to 4G networks, while maintaining similar cost structures. RedCap represents a streamlined version of 5G technology, previously deployed in connected and wearable devices, now adapted for automotive applications.
According to Marelli, the technology addresses several industry challenges including the anticipated phase-out of 4G networks in certain regions beginning as early as 2030, as well as compliance with U.S. Hardware and Software Ban requirements and USMCA manufacturing content regulations. The company is collaborating with a telematics module supplier to ensure regulatory compliance.
The system features automatic switching between 4G and 5G networks to maintain connectivity in areas with varying network coverage. Additional capabilities include dual-frequency GNSS integration and next-generation Wi-Fi and Bluetooth support for applications such as media streaming, real-time navigation, and over-the-air updates.
“Affordable 5G RedCap is a game-changer in automotive telematics,” said Nate Sladek, Vice President Strategy and Product Management of Marelli’s Electronics business. The technology targets vehicles that require enhanced connectivity without the full performance specifications of traditional 5G networks.
Technical specifications indicate the Affordable 5G RedCap solution operates with up to 20 MHz bandwidth, approximately 20 ms latency, and data rates reaching 220 Mbps. These figures position it between 4G Category 4 capabilities (150 Mbps, 50 ms latency) and traditional 5G performance (up to 2 Gbps, as low as 1 ms latency).
The technology is currently available for demonstration, with production samples expected in early 2026. Marelli has targeted 2028 for the first global start of production.
Marelli operates over 150 sites globally and employs approximately 40,000 people worldwide.