Energy Product Derivatives - Hungary

Hungary

The nominal value in the Energy Product Derivatives market is projected to reach US$129.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.89% resulting in a projected total amount of US$172.10bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.52 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 271.00k by 2029.

Market

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Analyst Opinion

The Energy Product Derivatives market in Hungary has been experiencing notable developments in recent years. Customer preferences in Hungary are shifting towards more diverse investment options, including Energy Product Derivatives, as investors seek to diversify their portfolios and hedge against market volatility.

Trends in the market show a growing interest in Energy Product Derivatives due to the increasing focus on renewable energy sources and the government's initiatives to reduce dependency on traditional energy sources. Local special circumstances, such as Hungary's geographical location and its energy market structure, play a significant role in shaping the Energy Product Derivatives market in the country. The proximity to key energy markets in Europe and the country's efforts to modernize its energy infrastructure contribute to the growth of derivative trading in the energy sector.

Underlying macroeconomic factors, like regulatory reforms and economic stability, also influence the development of the Energy Product Derivatives market in Hungary. The government's support for renewable energy projects and the overall economic growth in the country create a favorable environment for investors looking to participate in energy derivative markets.

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.