Energy Product Derivatives - Cyprus

Cyprus

The nominal value in the Energy Product Derivatives market is projected to reach US$8.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.28% resulting in a projected total amount of US$9.74bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.15 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 62.94k by 2029.

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Analyst Opinion

Amidst the growing interest in renewable energy sources, the Energy Product Derivatives market in Cyprus is experiencing a notable shift towards more sustainable investment options.

Customer preferences: Customers in Cyprus are increasingly leaning towards Energy Product Derivatives that are aligned with environmentally friendly practices. This shift in preferences can be attributed to a global trend towards sustainable investing and the increasing awareness of climate change among investors.

Trends in the market: The Energy Product Derivatives market in Cyprus is witnessing a rise in demand for derivatives linked to renewable energy sources such as solar and wind. This trend is in line with the country's efforts to transition towards a greener economy and reduce its carbon footprint. As a result, there is a growing interest in derivatives that track the performance of renewable energy projects and companies in Cyprus.

Local special circumstances: Cyprus, being an island nation heavily dependent on imported energy, is actively seeking to enhance its energy security and reduce its reliance on fossil fuels. This unique circumstance has led to a push for the development of renewable energy infrastructure and the promotion of energy efficiency measures. As a result, investors in Cyprus are showing a heightened interest in Energy Product Derivatives that support the country's sustainable energy goals.

Underlying macroeconomic factors: The Energy Product Derivatives market in Cyprus is also influenced by broader macroeconomic factors such as government policies, regulatory frameworks, and international market trends. The government's support for renewable energy projects through incentives and subsidies has created a favorable environment for investments in green derivatives. Additionally, the increasing integration of Cyprus into the European energy market and the evolving regulatory landscape are shaping the dynamics of the Energy Product Derivatives market in the country.

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.