Energy Product Derivatives - Worldwide

Worldwide

The nominal value in the Energy Product Derivatives market is projected to reach €44.93tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.46% resulting in a projected total amount of €50.74tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to €0.03 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€24,960.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 1.83bn by 2029.

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Energy Product Derivatives market has been experiencing significant growth and development worldwide.

Customer preferences: Traders and investors in the Energy Product Derivatives market are increasingly looking for ways to hedge against volatility and price fluctuations in the energy sector. They are drawn to derivatives as a way to manage risk and potentially profit from market movements without owning the physical commodities.

Trends in the market: In the United States, the Energy Product Derivatives market is seeing a surge in activity due to the shale revolution, which has transformed the country into a leading producer of oil and gas. This has led to increased trading of derivatives linked to crude oil, natural gas, and other energy products. On the other hand, in Europe, there is a growing focus on environmental sustainability, leading to an uptick in the trading of derivatives linked to renewable energy sources.

Local special circumstances: In the Middle East, the Energy Product Derivatives market is influenced by geopolitical tensions and production decisions made by major oil-producing countries. This region plays a crucial role in global energy markets, impacting derivative prices and trading volumes. Additionally, in Asia, the market is driven by the region's rapid industrialization and urbanization, creating a high demand for energy and related derivatives.

Underlying macroeconomic factors: The global Energy Product Derivatives market is influenced by various macroeconomic factors such as interest rates, inflation, and economic growth. Changes in these factors can impact the demand for energy products and subsequently affect derivative prices. Additionally, regulatory developments and government policies regarding energy production and consumption play a significant role in shaping the market dynamics worldwide.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.