Wouldn't hardware revenue be much higher than software revenue because costs are equally high?

You could sell $5 fidget spinners or $500,000 Rolls Royces. Costs would be highly dependent on the industry/product.

However, what's limiting is that physical goods depend on physical distribution.

Theoretically, software's available market is the entire planet. Physical goods only go where you can physically send (and support) your product.

All else being equal, distribution plays a larger role in the discrepancy between physical vs. software.

I imagine OP is probably selling countertops or maybe even something with required precision like granite surface plates.

Typically durable goods will have less revenue than software services, since there isn't really the concept of logarithmic growth that you can theoretically support with software.