Energy Product Derivatives - Bangladesh

Bangladesh

The nominal value in the Energy Product Derivatives market is projected to reach US$27.98bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.17% resulting in a projected total amount of US$37.74bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.07 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 422.70k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the evolving financial landscape in Bangladesh, the Energy Product Derivatives market is experiencing notable developments. Customer preferences in the Energy Product Derivatives market in Bangladesh are shifting towards more diverse investment options, driven by an increasing appetite for risk management and portfolio diversification.

Investors are showing a growing interest in leveraging derivatives to hedge against energy price fluctuations and capitalize on market volatility. Trends in the market indicate a rising demand for Energy Product Derivatives as market participants seek to navigate the complexities of energy markets in Bangladesh. The introduction of new derivative products tailored to the energy sector is attracting a broader investor base, further deepening the market liquidity and enhancing price discovery mechanisms.

Local special circumstances, such as the government's focus on energy sector reforms and infrastructure development, are creating a conducive environment for the growth of Energy Product Derivatives in Bangladesh. The liberalization of the energy market and the promotion of renewable energy sources are driving innovation in derivative products, offering market participants opportunities to engage in sustainable investment strategies. Underlying macroeconomic factors, including GDP growth, inflation rates, and foreign direct investment inflows, are influencing the trajectory of the Energy Product Derivatives market in Bangladesh.

As the economy continues to expand and diversify, the demand for energy derivatives as financial instruments for price risk management is expected to rise, reflecting the country's increasing integration into the global energy market landscape.

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.