Energy Product Derivatives - Bhutan

Bhutan

The nominal value in the Energy Product Derivatives market is projected to reach US$1.92bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.76% resulting in a projected total amount of US$2.54bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.20 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 9.86k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Bhutan is experiencing a gradual but steady growth in recent years.

Customer preferences: Customers in Bhutan are showing an increasing interest in Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The demand for these derivatives is being driven by a growing awareness of the benefits they offer in terms of risk management and potential returns.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Bhutan is the introduction of new and innovative financial products tailored to the specific needs of local investors. As the market matures, we are also witnessing a rise in trading volumes and liquidity, indicating a higher level of participation from both retail and institutional investors.

Local special circumstances: Bhutan's unique position as a country with abundant hydropower resources plays a significant role in shaping the Energy Product Derivatives market. The government's focus on sustainable energy development and the increasing importance of renewable energy sources are driving the demand for derivatives linked to energy products in the country.

Underlying macroeconomic factors: The stability of Bhutan's economy and its strategic location between energy-rich countries contribute to the attractiveness of the Energy Product Derivatives market. Additionally, the government's efforts to promote foreign investment and improve the overall business environment are creating opportunities for the market to expand further.

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.