Replacing 3 Kg LPG with Electric Stoves: How Big is the Global Electric Stove Market?

State-owned electricity company Perusahaan Listrik Negara (PLN) will distribute approximately 5 million free 1,000-watt electric stoves next year as a replacement for 3-kilogram LPG cylinders. This year, PLN aims to distribute 300,000 induction cooktops to beneficiary families.

According to the Business Research Company, the global electric stove market is projected to grow from US$18.47 billion in 2020 to US$19.81 billion in 2021, with a compound annual growth rate (CAGR) of 7.3%. This growth is mainly attributed to companies reorganizing their operations and recovering from the impact of Covid-19.

The electric stove market is then expected to reach US$25.52 billion by 2025 with a CAGR of 7%.

The electric stove market encompasses the sales of electric cooktops that convert electricity into heat and serve as an alternative to gas stoves. Electric stoves contain a thermostat, spiral or coil-shaped burners placed on top, and heating elements for baking and cooking.

The government is expected to continue providing electricity subsidies to PLN customers receiving the free induction cooktop package, who are from the 450 volt-ampere (VA) and 900 VA categories. In this conversion program, PLN will increase the power capacity of 450 VA customers to 3,500 VA, and 900 VA customers to 4,400 VA. This power increase specifically for induction cooktop usage is expected not to eliminate the electricity tariff subsidy for recipients of the induction cooktop assistance.