Marelli, a global technology supplier to the automotive sector, has unveiled its breakthrough affordable 5G RedCap (reduced capability) technology for vehicle telematics, delivering a 50% higher data rate and 2.5 times less latency than 4G while maintaining a comparable price point.
Affordable 5G RedCap is a streamlined version of 5G already used in connected and wearable devices. Marelli has adapted the technology for automotive applications, offering faster data transmission, lower latency, reduced hardware complexity, and minimal power consumption, key advantages for electric and connected vehicles. The solution also offers a cost-effective upgrade path for automakers as many regions begin phasing out 4G networks as early as 2030. Marelli is working closely with a leading telematics module supplier to ensure compliance with the U.S. Hardware and Software Ban and USMCA (United States–Mexico–Canada Agreement) requirements for in-region manufacturing.
The technology enables seamless switching between 4G and 5G networks, ensuring uninterrupted connectivity in areas with limited or no 5G coverage. It also integrates dual-frequency GNSS (Global Navigation Satellite System) along with next-generation Wi-Fi and Bluetooth to enhance connectivity for media streaming, real-time navigation, and over-the-air updates.
“Affordable 5G RedCap is a game-changer in automotive telematics. It solves for all the pain points we hear from vehicle makers today, 4G sunset, obsolescence, affordability, U.S. Ban, and USMCA compliance,” said Nate Sladek, Vice President, Strategy and Product Management for Marelli’s Electronics business. “By offering advanced connectivity capabilities at a price point close to 4G, we’re setting a new benchmark for affordable connectivity, especially for vehicles that don’t require the full performance of traditional 5G.”
Marelli’s Affordable 5G RedCap solution is now ready for demonstration, with production samples expected in early 2026 and the first global start of production (SOP) targeted for 2028.
Background Information
Features of Affordable 5G RedCap telematics compared to 4G and traditional 5G.
Feature | Traditional 5G | Affordable 5G RedCap | 4G Cat. 4 |
Bandwidth | Up to 100 MHz | Up to 20 MHz | Up to 20 MHz |
Latency | As low as 1 ms | ~20 ms | ~50 ms |
Data Rate | Up to 2 Gbps | Up to 220 Mbps | Up to 150 Mbps |
Device Cost | High, due to complex hardware and advanced capabilities | Lower than 5G, due to simplified hardware and reduced capabilities | Moderate, due to balanced hardware and capabilities |
Power Consumption | High, due to advanced features and high performance | Moderate, optimized for battery life and efficiency | Moderate, suitable for a range of devices |
Today, it's up to 20 MHz - this will reduce significantly once the phase-out of 4G networks starts.
About Marelli
Marelli is a global mobility technology supplier to the automotive industry. With a long-standing record of innovation and manufacturing excellence, the company works closely with customers and partners to help shape a safer, greener, and more connected future. Marelli employs approximately 40,000 people and operates more than 150 sites worldwide. Click here to know more about Marelli.
Learn more about 5G RedCap
