Marelli has unveiled its breakthrough Affordable 5G RedCap (Reduced Capability) technology for vehicle telematics, promising faster connectivity at a price point close to today’s 4G solutions. The company claims the new technology delivers a 50% higher data rate and 2.5 times lower latency than 4G, while keeping hardware complexity and power consumption to a minimum—making it well suited for electric and connected vehicles.
Affordable 5G RedCap is a lighter, more streamlined version of conventional 5G that is already being used in connected and wearable devices. Marelli has now adapted it specifically for automotive applications, enabling quicker data transmission, smoother real-time communication, and more efficient over-the-air updates without the cost burden of full-scale 5G. The solution is also positioned as a practical alternative as the global phase-out of 4G networks begins, with some regions expected to start shutting down 4G services as early as 2030.
To meet regulatory and trade requirements, the company is working closely with a leading telematics module supplier to ensure the new solution is compliant with the U.S. Hardware and Software Ban as well as USMCA norms for in-region manufacturing content. The technology also supports seamless switching between 4G and 5G networks, ensuring uninterrupted connectivity even in areas with limited or no 5G coverage.
In addition, the solution integrates dual-frequency GNSS along with next-generation Wi-Fi and Bluetooth, further enhancing in-vehicle connectivity for media streaming, real-time navigation, and vehicle software updates. According to Marelli, this makes Affordable 5G RedCap a balanced solution for automakers that want future-ready connectivity without overengineering.
Commenting on the development, Mr. Nate Sladek, Vice President – Strategy and Product Management, Electronics business at Marelli, said the new technology directly addresses the key challenges faced by automakers today, including the 4G sunset, obsolescence risks, affordability, and regulatory compliance in the U.S. and North America. He added that by delivering advanced connectivity near 4G pricing, Marelli is setting a new benchmark for cost-effective vehicle telematics, especially for vehicles that do not require the full performance of traditional 5G.
Marelli’s Affordable 5G RedCap solution is now ready for demonstration, with production samples expected to be available in early 2026. The first global start of production is currently targeted for 2028.