Energy Product Derivatives - Finland

Finland

The nominal value in the Energy Product Derivatives market is projected to reach US$96.38bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.78% resulting in a projected total amount of US$100.20bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.26 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 403.80k by 2029.

Market

Region

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Currency

Analyst Opinion

The Energy Product Derivatives market in Finland is experiencing a notable increase in activity and interest.

Customer preferences: Customers in the Energy Product Derivatives market in Finland are showing a growing inclination towards renewable energy derivatives, reflecting a global shift towards sustainable energy sources. They are also increasingly interested in derivatives related to electricity and natural gas, mirroring the country's reliance on these energy sources for power generation and heating.

Trends in the market: One prominent trend in the Energy Product Derivatives market in Finland is the rising demand for customized derivative products tailored to specific energy needs. This trend is driven by the need for risk management and hedging strategies in a volatile market environment. Additionally, there is a growing trend towards electronic trading platforms, enhancing accessibility and transparency in the market.

Local special circumstances: Finland's unique energy landscape, characterized by a significant emphasis on renewable energy sources such as hydropower, biomass, and wind power, influences the dynamics of the Energy Product Derivatives market. The country's ambitious renewable energy targets and initiatives create opportunities for innovative derivative products linked to green energy investments.

Underlying macroeconomic factors: The stability of Finland's economy, coupled with favorable government policies supporting renewable energy development, provides a conducive environment for the growth of the Energy Product Derivatives market. Additionally, Finland's strategic location and integration within the Nordic energy market contribute to the diversity and depth of derivative products available to investors and energy market participants.

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.