Tuya Partners with Zeroth to Develop Smart Home Robots
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Fazen Markets Editorial Desk
Collective editorial team · methodology
tuya-smartzeroth-ai
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Tuya Smart, a leading provider of Internet of Things (IoT) cloud platform services, announced a strategic partnership with Zeroth Technology on June 26, 2026. The collaboration aims to co-develop next-generation smart home robot products. The alliance integrates Tuya’s device connectivity with Zeroth’s advanced robotics and computer vision technologies. This move targets the rapidly expanding consumer robotics market, projected to grow at a compound annual growth rate (CAGR) of over 17% through the decade.
Smart home robotics represent a convergence of AI, machine vision, and IoT connectivity. The global smart home robot market is projected to exceed $45 billion by 2027, up from approximately $22 billion in 2023. This growth is driven by increasing consumer adoption of automation, aging populations requiring assistive care, and falling costs of key components like LiDAR sensors and processors.
Tuya’s pivot towards robotics follows a series of strategic moves to diversify its platform beyond traditional smart home devices. The company previously expanded into commercial and industrial IoT applications throughout 2025. Zeroth brings a specialized background in developing autonomous navigation systems for logistics and warehouse robots. Its partnership with Tuya marks its first significant entry into the consumer product space.
The partnership is strategically timed ahead of major industry events like the Consumer Electronics Show in January 2027. It also responds to recent announcements from competitors. Amazon has been aggressively expanding its Astro home robot’s capabilities, while Samsung’s rumored robotics division has hinted at a 2027 product launch.
Tuya’s stock (NYSE: TUYA) closed at $2.45 on June 26, giving the company a market capitalization of approximately $1.38 billion. The stock is down 14% year-to-date, underperforming the tech-heavy Nasdaq-100 index, which is up 8.5% over the same period. Tuya reported Q1 2026 revenue of $65.2 million, a 12% year-over-year increase, with its IoT Platform-as-a-Service (PaaS) segment contributing 85% of total sales.
Zeroth Technology is a private company whose latest funding round in late 2025 valued it at $320 million. The company employs roughly 150 engineers specializing in robotics and AI. The partnership’s first development milestone is scheduled for Q4 2026, with a target of having a commercially available product in the first half of 2027.
Market size comparisons highlight the opportunity. The broader consumer robotics sector’s $45 billion 2027 projection compares to the overall smart home device market, estimated at over $380 billion. This indicates robotics is a high-growth niche within the larger ecosystem. Pricing for smart home robots currently ranges from $1,000 for basic models to over $3,500 for advanced units with full home mapping and manipulation capabilities.
This partnership is a positive development for Tuya, providing a potential new high-margin revenue stream and strengthening its ecosystem stickiness. A successful product could add an estimated $50-$100 million in annual revenue within three years of launch. It is also a significant validation for Zeroth, providing a clear path to mass-market commercialization for its technology.
The development is moderately negative for pure-play smart home device manufacturers that lack robotic capabilities, such as iRobot (IRBT). These companies may face increased competitive pressure as platform players like Tuya integrate robotics into their broader smart home suites. Semiconductor suppliers focused on IoT and edge AI, like Ambarella (AMBA) and Synaptics (SYNA), could see increased demand for their processing chips.
A key limitation is the high initial cost of development and consumer acquisition. The success of the venture is not guaranteed and hinges on the partners’ ability to deliver a reliable product at a competitive price point. Institutional flow data indicates small upticks in Tuya option volumes, suggesting some traders are positioning for increased volatility around future product announcements.
The primary catalyst is the first joint product demonstration, expected at a major technology conference in Q4 2026. Investors should monitor Tuya’s Q2 2026 earnings call, scheduled for late August, for initial commentary on R&D expenditure related to the partnership. Zeroth may also seek another funding round ahead of the product launch, which would provide a new valuation benchmark.
Key levels to watch for TUYA stock include technical resistance near its 50-day moving average of $2.60. A sustained break above this level could signal renewed investor confidence. On the downside, the stock’s 52-week low of $2.10 serves as critical support. The success of this venture will ultimately be measured by pre-order volumes and initial sell-through data upon the product’s launch in 2027.
The partnership offers Tuya a path to diversify its revenue and potentially capture higher margins in the growing smart home robotics market. Successful execution could improve investor sentiment toward the stock, which has underperformed the broader tech sector. However, the financial impact will not be immediate, as product development and launch timelines extend into 2027. The market will closely watch R&D spending in upcoming quarterly reports for signs of the project's scale.
Amazon's Astro is a vertically integrated product developed in-house for its ecosystem. Tuya's approach is fundamentally different, leveraging its open IoT platform to potentially enable various hardware manufacturers to build compatible robots using the joint Tuya-Zeroth technology. This platform model could allow for a wider variety of form factors and price points, but it may lack the deep integration and marketing push of a singular product like Astro.
The primary risks are high consumer price points, data privacy concerns related to always-on cameras and microphones, and the challenge of delivering truly useful functionality beyond novelty. Previous attempts at home robots have struggled with limited practicality. Overcoming these barriers requires flawless execution in AI, ensuring the robot reliably performs tasks like elder care, home security, or domestic chores to justify its cost and presence.
Tuya's robotics partnership with Zeroth is a strategic bid to capture a share of the high-growth smart home automation market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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