Why end of arm tooling could be robotics' most profitable niche - The Robot Report

The article highlights the significant and often overlooked role of end-of-arm tooling (EOAT) in the robotics industry, positioning it as potentially the most profitable niche within robotics. EOAT refers to the various devices attached to robotic arms—such as grippers, suction cups, welding torches, and surgical tools—that enable robots to interact with and manipulate objects. Unlike the more visible robot hardware, EOAT is essential for practical automation and commands a growing market valued at $2.6 billion in 2023, with a projected compound annual growth rate (CAGR) of 10.1% through 2028. Certain EOAT segments, like soft robotics grippers used in delicate food handling, may see even faster growth rates of 18–20% CAGR, outpacing the 7–8% growth expected for industrial robot hardware. Several factors contribute to EOAT’s strong market position. The large installed base of over 553,000 industrial robots in 2023 ensures recurring revenue