Energy Product Derivatives - Eastern Asia

Eastern Asia

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$7.77tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.50% resulting in a projected total amount of US$8.37tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.03 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 330.60m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Eastern Asia is experiencing significant growth and evolution. Customer preferences in Eastern Asia are shifting towards more diversified investment portfolios, with a growing interest in alternative investment options such as Energy Product Derivatives.

Investors are increasingly looking for ways to hedge against market volatility and capitalize on the potential returns offered by these financial instruments. Trends in the market show a notable increase in trading volumes of Energy Product Derivatives in countries like Japan, South Korea, and China. This surge can be attributed to the region's robust economic growth, technological advancements in trading platforms, and the increasing participation of institutional investors in derivative markets.

Local special circumstances, such as regulatory reforms and government initiatives to develop financial markets, are playing a crucial role in shaping the Energy Product Derivatives landscape in Eastern Asia. For instance, China's efforts to internationalize its financial markets and attract foreign investments are creating new opportunities for derivative products in the region. Underlying macroeconomic factors, including geopolitical tensions, energy demand-supply dynamics, and currency fluctuations, are also influencing the Energy Product Derivatives market in Eastern Asia.

These factors contribute to market uncertainty and drive the need for risk management tools like derivatives among market participants in the region.

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.