Energy Product Derivatives - Georgia

Georgia

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$8.87bn 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$9.92bn 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 United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 49.39k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Georgia is experiencing a notable surge in activity and interest.

Customer preferences: Market participants in Georgia are increasingly drawn to Energy Product Derivatives due to their potential for high returns and portfolio diversification. With a growing appetite for risk management tools, investors are turning to these derivatives to hedge against volatility in energy prices and capitalize on market fluctuations.

Trends in the market: One prominent trend in the Energy Product Derivatives market in Georgia is the rising demand for trading in electricity and natural gas derivatives. As the energy sector in the country evolves and liberalizes, market players are keen on leveraging these derivatives to manage exposure to price movements and speculate on future price trends. Additionally, the adoption of renewable energy sources is influencing the development of new derivative products tailored to green energy.

Local special circumstances: Georgia's strategic location at the crossroads of Europe and Asia positions it as a key player in the energy transit routes, fostering a conducive environment for energy trading activities. The country's efforts to enhance its energy infrastructure and attract foreign investments in the sector are further fueling the growth of Energy Product Derivatives trading. Moreover, the government's support for market liberalization and regulatory reforms is creating opportunities for market expansion and product innovation.

Underlying macroeconomic factors: The macroeconomic landscape in Georgia, characterized by stable economic growth and a favorable business environment, is bolstering confidence among investors to engage in Energy Product Derivatives trading. The country's focus on energy security and sustainability is driving investments in the energy sector, spurring the demand for related derivatives products. Additionally, geopolitical developments and global energy trends are shaping market dynamics and influencing trading activities in Georgia's Energy Product Derivatives market.

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.