(Pocket-lint) - Amazon is reportedly going full-bore with hardware as it begins work on gadgets for the smarthome.

According to Reuters, Amazon plans to boost its hardware development staff by at least 27 per cent in the next five years. The source claims that Amazon will invest $55 million in its Lab126 division, which was responsible for developing the Kindle and Fire Phone.

Smarthomes are fast becoming the battle ground for gadget manufacturers with intelligent connected lights, heating, locks and even washing machines already available.

Amazon's plans, allegedly, involve creating a Wi-Fi connected device that can be placed in a cupboard or in the kitchen to allow for one-touch ordering. For example ordering detergent when that runs out will be as simple as touching one button, apparently. Down the line Amazon envisions homes with sensors built-in that can detect when things need replacing to automate the process.

Lab126 is also reportedly looking into wearables but nothing specific was mentioned suggesting it may not bring anything to market.

Speaking to Reuters about the matter Amazon said: "We will continue to invent and create new features, services and products, and to support this innovation. Lab126 is also growing very quickly."

Despite the Amazon Fire Phone not doing very well after its US release it appears the company is not giving up on hardware. Aiming at the home market, Amazon has the likes of Apple's HomeKit and Google-owned Nest to compete against.

READ: The future of home security: Get ready for sensors and pro-active systems

Writing by Luke Edwards.