The first automatic electric fire alarm was invented in 1890 by Francis Robbins Upton (U.S. patent no. 436,961). Upton was an associate of Thomas Edison, but there is no evidence that Edison contributed to this project.
In the late 1930s the Swiss physicist Walter Jaeger tried to invent a sensor for poison gas. He expected that gas entering the sensor would bind to ionized air molecules and thereby alter an electric current in a circuit in the instrument. His device failed: small concentrations of gas had no effect on the sensor's conductivity. Frustrated, Jaeger lit a cigarette—and was soon surprised to notice that a meter on the instrument had registered a drop in current. Smoke particles had apparently done what poison gas could not. Jaeger's experiment was one of the advances that paved the way for the modern smoke detector.
It was 30 years, however, before progress in nuclear chemistry and solid-state electronics made a cheap sensor possible. While home smoke detectors were available during most of the 1960s, the price of these devices was rather high. Before that, alarms were so expensive that only major businesses and theaters could afford them.
The first truly affordable home smoke detector was invented by Duane D. Pearsall in 1965, featuring an individual battery powered unit that could be easily installed and replaced. The first units for mass production came from Duane Pearsall’s company, Statitrol Corporation, in Lakewood, Colorado. These first units were made from strong fire resistant steel and shaped much like a bee's hive. The battery was a rechargeable specialized unit created by Gates Energy. The need for a quick replace battery didn't take long to show itself and the rechargeable was replaced with a pair of AA batteries along with a plastic shell encasing the detector. The small assembly line sent close to 500 units per day before Statitrol sold its invention to Emerson Electric in 1980 and Sears’s retailers picked up full distribution of the 'now required in every home' smoke detector.
The first commercial smoke detectors came to market in 1969. Today they are installed in 93% of U.S. homes and 85% of UK homes. However it is estimated that any given time over 30% of these alarms do not work, as users remove the batteries, or forget to replace them. Article from NEW WORLD ENCYCLOPEDIA