Energy Product Derivatives - Belgium

Belgium

The nominal value in the Energy Product Derivatives market is projected to reach US$197.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.30% resulting in a projected total amount of US$255.50bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.30 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 0.73m by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Belgium reflects a growing trend towards renewable energy sources and sustainable investments. Customer preferences in Belgium are shifting towards environmentally friendly energy products, leading to an increased demand for derivatives linked to renewable energy sources such as wind and solar power.

This shift is driven by both consumer awareness of climate change and government initiatives to promote green energy investments. Trends in the market show a rise in the trading volume of derivatives linked to renewable energy projects in Belgium. Investors are increasingly looking for opportunities to diversify their portfolios with sustainable assets, leading to the development of new financial products tailored to the renewable energy sector.

Local special circumstances in Belgium, such as the country's commitment to phasing out nuclear power and reducing carbon emissions, are driving the growth of the Energy Product Derivatives market. This focus on sustainability is attracting both domestic and international investors looking to capitalize on the transition to a greener economy. Underlying macroeconomic factors, including government subsidies for renewable energy projects and the European Union's push for carbon neutrality, are also influencing the development of the Energy Product Derivatives market in Belgium.

These factors create a favorable environment for innovation and investment in sustainable energy solutions, further driving the growth of the market.

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.