Energy Product Derivatives - Israel

Israel

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$143.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.50% resulting in a projected total amount of US$170.60bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.32 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 455.00k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Israel has been experiencing notable developments in recent years. Customer preferences in Israel's Energy Product Derivatives market are influenced by a growing interest in alternative energy sources and sustainability.

Customers are increasingly seeking derivatives that are linked to renewable energy products, reflecting a global trend towards environmentally friendly investments. Trends in the market show a shift towards increased participation from institutional investors in Energy Product Derivatives in Israel. This trend is driven by the country's efforts to diversify its energy sources and reduce reliance on traditional fossil fuels.

Additionally, advancements in technology and data analytics have made trading in derivatives more accessible to a wider range of investors. Local special circumstances in Israel, such as geopolitical factors and regional instability, play a significant role in shaping the Energy Product Derivatives market. The country's unique position in the Middle East region can lead to fluctuations in energy prices and demand, impacting the derivatives market.

Moreover, Israel's focus on innovation and technology in the energy sector can create opportunities for derivative products linked to new energy technologies. Underlying macroeconomic factors, including regulatory changes and government policies, also influence the Energy Product Derivatives market in Israel. The government's initiatives to promote renewable energy and reduce carbon emissions can drive demand for derivatives linked to clean energy sources.

Additionally, economic growth and stability in the country can attract foreign investors to participate in the derivatives market, further fueling its development.

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.