Energy Product Derivatives - Ireland

Ireland

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$183.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.04% resulting in a projected total amount of US$203.10bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.33 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 643.30k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

In Ireland, the Energy Product Derivatives market is witnessing a notable growth trajectory with a unique set of customer preferences driving the market dynamics. Customer preferences in the Energy Product Derivatives market in Ireland are influenced by a growing emphasis on renewable energy sources and sustainability.

Investors and market participants are increasingly inclined towards derivatives linked to green energy products, reflecting a global shift towards environmentally friendly investments. This preference is driven by a combination of regulatory initiatives promoting clean energy and consumer demand for eco-conscious practices in the energy sector. Trends in the market indicate a rising demand for Energy Product Derivatives that are tailored to the specific energy landscape of Ireland.

As the country aims to increase its renewable energy capacity and reduce dependence on traditional fossil fuels, there is a growing need for derivatives that allow market participants to hedge against volatility in the renewable energy sector. This trend is further fueled by the government's ambitious targets for renewable energy generation, creating opportunities for innovative derivative products in the market. Local special circumstances in Ireland, such as the geographical constraints on energy production and the integration of renewable sources into the grid, play a significant role in shaping the Energy Product Derivatives market.

The unique energy mix in Ireland, which includes a substantial reliance on wind power, presents challenges and opportunities for derivative products that cater to the intermittent nature of renewable energy sources. Market participants are increasingly looking for customized derivatives that can address these specific circumstances and provide effective risk management solutions. Underlying macroeconomic factors, including Ireland's economic growth prospects and energy policy framework, are driving the development of the Energy Product Derivatives market.

As the country continues to invest in renewable energy infrastructure and transition towards a low-carbon economy, there is a growing demand for derivatives that can support these initiatives and help manage associated risks. The evolving regulatory environment and government support for sustainable energy practices are expected to further shape the landscape of Energy Product Derivatives in Ireland.

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.