Energy Product Derivatives - Australia & Oceania

Australia & Oceania

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$129.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.56% resulting in a projected total amount of US$154.50bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.14 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 991.50k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Over the past few years, the Energy Product Derivatives market in Australia & Oceania has been witnessing significant developments and trends that are shaping the industry in the region.

Customer preferences: Customers in Australia & Oceania have shown a growing interest in Energy Product Derivatives as a means of hedging against price volatility in the energy markets. With the increasing focus on risk management and portfolio diversification, investors and companies are turning to derivatives to manage their exposure to energy price fluctuations.

Trends in the market: In Australia, there has been a notable increase in the trading of Energy Product Derivatives, driven by the country's significant energy sector and the need for risk mitigation. The market is witnessing a shift towards more sophisticated derivative products, such as options and swaps, as market participants look for tailored solutions to their risk management needs. Additionally, the growing demand for renewable energy sources in the region is also influencing the development of new derivative products linked to green energy.

Local special circumstances: One of the key factors influencing the Energy Product Derivatives market in Australia & Oceania is the region's unique energy landscape. With a mix of traditional fossil fuel-based energy sources and a growing emphasis on renewable energy, market participants are navigating a complex environment that requires specialized derivative products to address specific risks. Additionally, regulatory frameworks and government policies play a crucial role in shaping the derivatives market in the region, with market participants closely monitoring any changes that could impact their trading strategies.

Underlying macroeconomic factors: The economic stability and growth prospects of Australia & Oceania are also key drivers of the Energy Product Derivatives market in the region. As the economy continues to evolve and diversify, market participants are adjusting their risk management strategies to align with changing macroeconomic conditions. Factors such as interest rates, inflation, and currency fluctuations can have a significant impact on the derivatives market, prompting market participants to stay informed and adapt their trading strategies accordingly.

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.