Founded in 2018, OnRobot is a prominent supplier of end-of-arm tooling, or EOAT. | Source: OnRobot
In robotics, all the buzz goes to the big names. Boston Dynamics dropping backflipping videos, Tesla teasing Optimus, or Chinese humanoids flooding LinkedIn with slick demo reels. But the real cash? It might be going to the folks making what amounts to robot mittens — EOAT.
End-of-arm tooling (EOAT) includes the grippers, suction cups, welding torches, sanding pads, surgical scalpels, and other devices attached to the end of a robotic arm is where automation meets the object it’s supposed to manipulate. Without EOAT, a robot is just an awkward mechanical mime.
The market picture
The global EOAT market was valued at $2.6 billion in 2023, according to Markets and Markets, and is projected to have a compound annual growth rate (CAGR) of 10.1% through 2028, hitting roughly $4.2 billion. Some analysts peg niche segments like soft robotics grippers at even higher growth, closer to 18–20% CAGR due to rising adoption in food and fragile goods handling.
Compare that to the industrial robot hardware CAGR of about 7% to 8%, and you can see why tooling might outpace the arms they’re attached to.
Why EOAT is a golden goose
- Installed base = recurring revenue: The International Federation of Robotics (IFR) reported that over 553,000 industrial robots were installed in 2023 alone. Nearly every single one of them needs EOAT, and that tooling is swapped, upgraded, or replaced multiple times over the robot’s lifespan.
- Customization drives margins: EOAT is rarely off-the-shelf. Automotive welding guns, electronics micro-grippers, bakery dough lifters — all require industry-specific engineering, which commands healthy margins and discourages commoditization.
- Cross-platform sales: A claw that works with a FANUC arm can work with a KUKA, ABB, or Universal Robots cobot with minimal tweaks. EOAT manufacturers aren’t married to any single robot brand, which spreads their market reach. Thanks to ISO 9409!
- Emerging segments are tooling-first: Agricultural robotics, warehouse item picking, and humanoid robots are all tooling-driven in capability. The arm may be standard, but the business case is made at the tool end.
Even we at ASTM see what is coming
At ASTM International, we saw this coming. That’s why we kicked off F45.05 to focus on EOATs. On paper, it’s about “developing performance standards for robotic end effectors.” In practice? It’s our way of making sure that as the claw-and-cup crowd starts printing money, we’re not standing on the sidelines holding a clipboard.
Because when the EOAT boom hits full swing, there will be more standards to write, test methods to publish, and maybe (just maybe) a few free samples to “evaluate” in the office. We’re talking serious research here — purely for science.
The investor joke (that’s not really a joke)
EOAT is the “razor blade” to the robot maker’s razor. Sell a robot arm once, sell its grippers forever. And when your customers shift from welding car doors to packing avocados? That’s another tooling order.
If robots are the headliners at the automation festival, EOAT is the sound guy. You don’t notice him until the music stops, and you definitely keep paying him, because without him, the show’s over.
Bottom line on EOAT
- High CAGR relative to core robot hardware
- Recurring revenue model via upgrades and replacements
- Broad industry diversification and cross-platform compatibility
- Rising demand from new verticals (agriculture, logistics, humanoids)
If you want exposure to robotics without betting on which robot OEM will dominate, EOAT is a strong candidate. Whether it’s a humanoid in a warehouse or an industrial arm on a car line, the robot can’t do squat without the business end. And that, for investors, is where the grip really tightens.
About the author
As the director of the Robotics and Autonomous Systems Program at ASTM International, Aaron Prather has years of experience in leading and supporting the growth and expansion of the robotics industry through standardization, workforce development, and research efforts.
Prather has a strong background in R&D management, team building, and operations management, as well as a master’s degree in business administration and a bachelor’s degree in geographic information science. Before joining ASTM, he was a Senior Technical Advisor at FedEx Express.
Editor’s mote: This article was syndicated, with permission, from Prather’s blog.
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