Investors have been rushing into the robotics sector, especially those who are interested in home-based and consumer-focused applications. Deals that had been dragging on for months suddenly closed overnight. Investors who were once hesitant are now confidently moving forward.

As the growth in humanoid robotic development begins to plateau, attention shifts to the complex and vast supply chain that supports these machines. But this door is also narrowing. As the humanoid wave simmered under the surface over the past two-years, upstream suppliers have quietly emerged as valuable and expensive targets.

An example of this is

ZeroErr. The company was founded in 2016 and manufactures high-reliability components that are critical to robot functionality, such as robotic joints and encoders. ZeroErr developed a standardized joint module in 2018 using its high-precision proprietary encoder. It then went into mass production. Since then, the company has raised multiple funding rounds in the eight-figure RMB range and today has a valuation of more than RMB 1 billion.

Before this boom, there were strong demands for robotic joints in multiple fields. From surgical and service robots to industrial robots used in automotive and 3C electronic. ZeroErr founder Jia Qiqing said in an interview with 36Krthat “we started shrinking joint size well before humanoid robotics became hot”

“It is not just the humanoid robot market. Other sectors are also demanding increasingly specialized solutions. Laparoscopic surgical robotics, for instance, allow for faster, more precise surgery with smaller incisions. They also enable quicker recovery. They can also perform remote surgeries, bringing expert medical care to rural areas.” Instead of pinning all their hopes on the still-nascent segment of humanoid robotics, they are earning steady revenues from more established verticals. ZeroErr’s joint module is used in a wide variety of robotic applications. The company’s clientele includes more than 2,000 robotics, tech and automakers firms around the world. The company has sold more than 50,000 joint modules to date, which is the highest in the industry.

Jia stated that joint sales in industrial and logistics settings, as well as medical settings, account for almost 50% of the company’s total income. Humanoid sales now account for about 15% of total revenue, a figure which has increased rapidly over the past two years. Jia believes that the company’s biggest strength is its stability. ZeroErr depends on its core clients to generate revenue, but the sector has a large and uncertain upside. According to Gonyn.com, GGII and Gonyn, the demand for robotic joint module in China is expected to reach 2.24 million units by 2024 and grow to 4.82 millions units by 2030. The market size could exceed RMB 68.9 Billion (USD 9.6 Billion) in 2030.

Jia stated, “At this time, our humanoids clients are primarily interested in joints that are smaller and lighter, more powerful, and with greater reliability.” As humanoids become more consumer-facing, cost reduction is essential. Our product team is focusing on this right now. We believe that there is still a lot of room for growth as robots become more commonplace. Joint quality is a key factor in determining a robot’s speed, precision, and agility. Due to the different operational environments and tasks that robots perform, they require different core components and joint configurations. Modern designs use modular power units which integrate motors and reducers with drivers, encoders and other sensors. ZeroErr’s joint module is composed of key components such as absolute encoders at both the motor and output end, frameless torquemotors, harmonic reducers and holding brakes.

An encoder is a robot’s angular-feedback system. It constantly measures joint positions and sends updates to the control system.

ZeroErr’s flagship eRob series equips the motor and reducer end with absolute encoders that feature seven-arcsecond accuracy and repeatability, and 15-arcsecond absolute precision. This allows for full closed-loop control of position, reducing backlash, wear and manufacturing deviations. The company claims that these are the most responsive and precise harmonic joint modules in the industry.

Surgical robots, for example, require extreme precision when it comes to repeatability, safety, power efficiency, and torque control since they often operate within the human body.

ZeroErr’s encoders for humanoid robotic systems enable highly accurate joint controls, which are essential in tasks such as material handling and component assemblies on automotive lines. The result is improved accuracy, productivity and quality.

At present, humanoid robots’ limbs and torsos use three primary transmission systems: harmonic reducers (planetary reducers), planetary roller screws, and planetary reducers. The latter is used to handle linear motion while harmonic and planet reducers are used for rotational movement.

The planetary reducers are cheaper and can handle higher torques, making them perfect for large-scale deployments. They are more suited to heavy-duty applications that require less precision, but they offer lower gear ratios.

Jia stated that planetary reducers have a number of advantages, including the fact that China has a well-developed industrial base. They are supported by local machining capability. Their simple structure and design flexibility makes it easy to integrate them with other joint components.

But humanoid robotics are a completely different beast. They require high power density and compact, lightweight designs. Planetary reducers may not be able to meet this requirement. Harmonic reducers are superior. They allow for greater reduction ratios to be achieved in tighter spaces, and they also enable finer control of motion thanks to a smaller backlash. ZeroErr is a specialist in harmonic reducer-based joint technology. Jia said that the joints are compact and lightweight. They are perfect for humanoids. “Harmonic drive also have high transmission accuracy and large one-stage ratios which are essential for precise joint motion.”

However, harmonic drives still have limitations. They require expensive manufacturing machinery, tight tolerances and advanced expertise in material, heat treatment and gear design. These constraints limit scale and hinder cost reduction.

Jia continued, “China is catching-up fast to international standards for harmonic drives.” “But deep customization is still difficult to achieve, such as what’s possible with planet-based joints. It’s a classic chicken-and-egg situation: customization requires large orders, but the volume of orders depends on accessing customized prototypes. Scaling remains a challenge because harmonic joints are five times more expensive than planetary joints. Both planetary and harmonic drives have different strengths, including lifespan, noise, shock resistance and failure modes. Both are likely to coexist with the best use being determined by each humanoid’s application.

Standardized but flexible, with wide applicability

Citing 36Kr a report on 2024 humanoid robotic development, they postulated cost reductions in humanoid robotic manufacturing would occur in three phases: small-scale (1,000 units) production can lower costs by 20%-30%, to USD 100,000 per unit. At 10,000 units, the costs will drop by 50%, to USD 50,000. At hundreds of

If mass-production takes off, the demand for core components such as joints will skyrocket. ZeroErr understands the importance of scale and is preparing for it. The company has launched a number of joint models to meet the diverse needs of industries and applications. These include the Straight eRob I type and Corner T type series.

eRob modules come in a variety of sizes and torque capacities. The smallest model is 70 millimeters in diameter and has a maximum torque rating of 70 newton meters, while the largest model is 170 millimeters wide and can support up to 1,180 Nm. ZeroErr modules are much more compact than those of competitors with similar torque ratings.

The small-form design with high torque has real-world benefits. Smaller joints, for instance, allow robots to work in tight spaces. In surgery, smaller joints allow robotic arms to be closer together and reduce the size of incisions. They bring humanoids’ form factors closer to human proportions. ZeroErr’s standard yet diverse joint lineup simplifies fabrication for downstream clients. The developers can save hundreds of hours by avoiding the tedious task of selecting, sourcing and assembling electronic and mechanical parts. Instead, they can focus on developing robot systems and applications.

The trend towards domestic sourcing continues to gain momentum. The dependence of the industry on imported joint components has been gradually eroding. Except for certain chips all of ZeroErr’s core components are now either developed domestically or sourced through local supply chains.

Jia stated that “full localization is the goal.” “We’ve already begun testing domestic chips. Soon, we won’t need to worry about choke points in the supply chain.

This company has also invested heavily in infrastructure. It has multiple workshops for precision machining on five axes, quality inspection and precision assembly. Each joint module is tested for backlash and rigidity as well as noise, precision under loading, and vibration. After assembly, modules are subjected to simulation testing in order to ensure performance under varying industrial conditions. This helps to minimize market failures.

Humanoid robots have pushed component suppliers into the spotlight. But for companies like ZeroErr the long-term survival of their business will not be dependent on humanoid robots alone. The company’s revenue is still derived from established markets and proven customers. The company’s primary mission is to serve them. KrASIA Connection

features translated and adapted material that was originally published 36Kr. This article has been written by Huang Nan exclusively for 36Kr.