SAITAMA, Japan, Dec. 9, 2025 /PRNewswire/ -- Marelli, a global technology supplier to the automotive sector, has unveiled its breakthrough Affordable 5G RedCap (Reduced Capability) technology for vehicle telematics that provides a 50% higher data rate with 2.5 times less latency than 4G, while still achieving a comparable price point.
Affordable 5G RedCap is a streamlined version of the 5G technology, already adopted for connected and wearable devices. Marelli has adapted this technology for the automotive sector, offering faster data transmission, lower latency, reduced hardware complexity, and minimal power consumption – which are key advantages for electric and connected vehicles. The new solution also provides an affordable alternative to traditional 5G for the upcoming phase-out of 4G networks, projected to start in certain regions beginning as early as 2030. Additionally, Marelli is working in close partnership with a leading telematics module supplier to ensure this next-generation telematics solution is compliant with the U.S. Hardware and Software Ban and USMCA (United States–Mexico–Canada Agreement) requirements for in region manufactured content.
The technology seamlessly switches between 4G and 5G networks, ensuring uninterrupted connectivity even 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 further enhance drivers' and passengers' connectivity experience 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 of 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 ready for demonstration, with production samples available in early 2026 and the first global start of production (SOP) targeted in 2028.
BACKGROUD 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 then 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 up to 20 MHz – this will reduce significantly once phase-out of 4G networks starts
About Marelli
Marelli is a global mobility technology supplier to the automotive industry. With a strong and established track record in innovation and manufacturing excellence, our mission is to transform the future of mobility through working with customers and partners to create a safer, greener, and better-connected world. With around 40,000 employees worldwide, the Marelli footprint includes over 150 sites globally.
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SOURCE Marelli
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