Based in 2018, OnRobot is a outstanding provider of end-of-arm tooling, or EOAT. | Supply: OnRobot
In robotics, all the excitement goes to the large names. Boston Dynamics dropping backflipping movies, Tesla teasing Optimus, or Chinese language humanoids flooding LinkedIn with slick demo reels. However the actual money? It could be going to the oldsters making what quantities to robotic mittens — EOAT.
Finish-of-arm tooling (EOAT) contains the grippers, suction cups, welding torches, sanding pads, surgical scalpels, and different units connected to the tip of a robotic arm is the place automation meets the thing it’s supposed to control. With out EOAT, a robotic is simply a clumsy mechanical mime.
The market image
The worldwide EOAT market was valued at $2.6 billion in 2023, in line with Markets and Markets, and is projected to have a compound annual progress fee (CAGR) of 10.1% via 2028, hitting roughly $4.2 billion. Some analysts peg area of interest segments like tender robotics grippers at even larger progress, nearer to 18–20% CAGR attributable to rising adoption in meals and fragile items dealing with.
Evaluate that to the industrial robotic {hardware} CAGR of about 7% to eight%, and you’ll see why tooling would possibly outpace the arms they’re connected to.
Why EOAT is a golden goose
- Put in base = recurring income: The Worldwide Federation of Robotics (IFR) reported that over 553,000 industrial robots have been put in in 2023 alone. Practically each single one in all them wants EOAT, and that tooling is swapped, upgraded, or changed a number of instances over the robotic’s lifespan.
- Customization drives margins: EOAT isn’t off-the-shelf. Automotive welding weapons, electronics micro-grippers, bakery dough lifters — all require industry-specific engineering, which instructions wholesome margins and discourages commoditization.
- Cross-platform gross sales: A claw that works with a FANUC arm can work with a KUKA, ABB, or Common Robots cobot with minimal tweaks. EOAT producers aren’t married to any single robotic model, which spreads their market attain. Due to ISO 9409!
- Rising segments are tooling-first: Agricultural robotics, warehouse merchandise selecting, and humanoid robots are all tooling-driven in functionality. The arm could also be customary, however the enterprise case is made on the instrument finish.
Even we at ASTM see what’s coming
At ASTM Worldwide, we noticed this coming. That’s why we kicked off F45.05 to give attention to EOATs. On paper, it’s about “growing efficiency requirements for robotic finish effectors.” In observe? It’s our approach of creating certain that because the claw-and-cup crowd begins printing cash, we’re not standing on the sidelines holding a clipboard.
As a result of when the EOAT increase hits full swing, there can be extra requirements to put in writing, take a look at strategies to publish, and perhaps (simply perhaps) a number of free samples to “consider” within the workplace. We’re speaking severe analysis right here — purely for science.
The investor joke (that’s probably not a joke)
EOAT is the “razor blade” to the robotic maker’s razor. Promote a robotic arm as soon as, promote its grippers ceaselessly. And when your prospects shift from welding automobile doorways to packing avocados? That’s one other tooling order.
If robots are the headliners on the automation competition, EOAT is the sound man. You don’t discover him till the music stops, and also you undoubtedly maintain paying him, as a result of with out him, the present’s over.
Backside line on EOAT
- Excessive CAGR relative to core robotic {hardware}
- Recurring income mannequin through upgrades and replacements
- Broad {industry} diversification and cross-platform compatibility
- Rising demand from new verticals (agriculture, logistics, humanoids)
If you’d like publicity to robotics with out betting on which robotic OEM will dominate, EOAT is a powerful candidate. Whether or not it’s a humanoid in a warehouse or an industrial arm on a automobile line, the robotic can’t do squat with out the enterprise finish. And that, for buyers, is the place the grip actually tightens.
In regards to the writer
Because the director of the Robotics and Autonomous Methods Program at ASTM Worldwide, Aaron Prather has years of expertise in main and supporting the expansion and growth of the robotics {industry} via standardization, workforce growth, and analysis efforts.
Prather has a powerful background in R&D administration, workforce constructing, and operations administration, in addition to a grasp’s diploma in enterprise administration and a bachelor’s diploma in geographic data science. Earlier than becoming a member of ASTM, he was a Senior Technical Advisor at FedEx Categorical.
Editor’s mote: This text was syndicated, with permission, from Prather’s weblog.
