In some verticals, China is already one of the largest markets for intelligent education hardware. A latest report from market consultancy Counterpoint said that the country is dominating the smartwatch sector by accounting for more than three out of every five devices sold.

Currently, several local companies are rushing into the intelligent hardware sector, including tech giants, such as ByteDance, Tencent Holdings, NetEase Inc and Xiaomi Corp, as well as leading internet firms such as iFlytek.

ByteDance recently launched a smart lamp, which has an embedded camera which enables parents to monitor the homework progress of their children. The light, which comes with a screen, also guides children when they encounter problems while doing their homework.

The move marks the company's first attempt in the intelligent education hardware market. It has also started research and development on several other products like pocket learning printers, early childhood machines and e-dictionary pens.

Zhou Feng, CEO of NetEase Youdao, the online education brand of Chinese tech leader NetEase Inc, said intelligent education hardware products are different from the previous learning hardware, in that they are more smarter than expected.

"In the long run, NetEase Youdao is positioned as an intelligent learning company, where users learn partly through online courses and partly through hardware. Intelligent hardware and online products are important and can supplement each other," he said.

NetEase Youdao launched its latest dictionary pen recently. With an average accuracy of 98.3 percent, the gadget is able to offer a "click and check" experience wherein users can search for a translation instantly with a simple click.

According to the company's earnings report for the third quarter of this year, intelligent learning hardware contributed revenue of 163 million yuan, a year-on-year growth of 289.3 percent.

During the third quarter of 2020, it shipped nearly 250,000 second-generation dictionary pens, making it the firm's second largest source of revenue.

As intelligent education hardware products continue to gain traction, challenges have also risen. Some parents are sceptical that excessive exposure to electronic devices may harm their children's eyesight, while others are concerned that children will be excessively reliant on such products than their own thinking.

Wang from Duojing Capital Research Institute said that the supply chain for hardware products is relatively mature and production costs are relatively transparent.

"More efforts are needed for companies to forge innovations in design, research and development, production and sales to differentiate from competition," he said.