Market Challenges And Opportunities

Limited vessels are compatible with electric cooktops posing a major challenge for growth of the market

Electric cooktops are compatible with specific cookware, thus limiting the range of vessels used for cooking on such cooktops. These cooktops are compatible with cookware is made up of ferromagnetic materials such as cast iron and steel and incompatible with cookware made up of aluminium or copper. This poses as a major factor hampering growth of the global market.

Market Drivers

Increasing demand for energy-efficient appliances is one of the key factors driving growth of the market. Rising prices of natural gas is driving demand for electric cooktops. For instance, according to the EIA (Energy Information Administration) analysis, in the U.S. the price of natural gas was US$ 3.55/MBTU (Million British Thermal Units) in 2017, which was higher than US$ 2.51/MBTU in 2016. This in turn is expected to proportionally hike prices of domestic cooking gas. Additionally, around 60% of cooking heat is lost while using natural gas to heat the stovetop, whereas only 30% heat is lost while heating electric cooktops. Thus, electric cooktops are more energy-efficient than conventional ones, further fuelling growth of the market.

Opportunities

The increasing demand for household kitchen appliances that can operate automatically is expected to boost growth of the electric cooktops market. Owing to rapid urbanization, the demand for these appliances is expected to rise significantly. Moreover, rising number of working professionals that are unable to perform routine activities such as cooking, in turn helps increase the demand for electric cooktops. These cooktops heat vessels 50% faster than traditional gas cooktops and automatically regulates temperature as per the requirement. Therefore, advancements in household appliance are further expected to boost growth of the electric cooktop market.