Energy Product Derivatives - Guatemala

Guatemala

The nominal value in the Energy Product Derivatives market is projected to reach US$32.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.37% resulting in a projected total amount of US$44.66bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.27 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 121.80k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Guatemala is experiencing a notable shift in recent years.

Customer preferences: Customers in Guatemala are increasingly showing interest in Energy Product Derivatives, seeking opportunities for portfolio diversification and risk management. This mirrors a global trend where investors are turning to financial derivatives to hedge against volatility in energy markets.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Guatemala is the growing participation of institutional investors. Pension funds and insurance companies are increasingly incorporating energy derivatives into their investment strategies, driving liquidity and market growth. Additionally, there is a rising demand for customized derivative products tailored to the specific needs of local market participants.

Local special circumstances: Guatemala's energy sector is undergoing significant transformation, with a focus on renewable energy sources such as hydropower, geothermal, and solar. This shift towards cleaner energy sources is influencing the Energy Product Derivatives market, as investors look for ways to capitalize on the opportunities presented by the country's changing energy landscape.

Underlying macroeconomic factors: The political and economic stability in Guatemala is attracting foreign investment in the energy sector, further fueling the demand for Energy Product Derivatives. Additionally, regulatory reforms aimed at increasing transparency and efficiency in the energy market are creating a favorable environment for derivative trading. These macroeconomic factors are contributing to the overall development and growth of the Energy Product Derivatives market in Guatemala.

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.