The gap RedCap fills.
5G grew up at two extremes: full NR for gigabit broadband, and NB-IoT and LTE-M for tiny, low-rate sensors. Between them sat a large class of devices — wearables, industrial sensors, surveillance cameras — that need more than LPWA but nothing like full NR, and for which a full 5G modem is too expensive and power-hungry.
RedCap (reduced-capability NR), also called NR-Light, is the 5G answer. It is a real NR device — it works on a standalone 5G network and can use slicing, positioning and the rest — but deliberately simplified so it is cheaper, smaller and lasts far longer on a battery.