Energy Product Derivatives - Mexico

Mexico

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$592.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.30% resulting in a projected total amount of US$632.50bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$17.93 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 35.33k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Mexico is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Mexican investors are increasingly turning to Energy Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal lies in the potential for high returns and the opportunity to speculate on price movements without owning the physical assets.

Trends in the market: One notable trend in the Mexican Energy Product Derivatives market is the growing interest in renewable energy derivatives. As the country makes strides towards cleaner energy sources, investors are showing a keen interest in derivatives linked to renewable energy assets. This trend is in line with global efforts towards sustainability and aligning investments with environmental goals.

Local special circumstances: Mexico's strategic geographical location and its position as a key energy hub in the region play a crucial role in shaping the Energy Product Derivatives market. The country's proximity to major energy markets and its extensive energy infrastructure make it an attractive destination for investors looking to participate in derivative trading.

Underlying macroeconomic factors: The macroeconomic landscape in Mexico, including factors such as government policies, regulatory environment, and economic stability, significantly influences the Energy Product Derivatives market. Favorable government policies supporting energy sector development and a stable economic outlook contribute to a conducive environment for derivative trading activities. Additionally, regulatory reforms aimed at enhancing transparency and investor protection have bolstered confidence in the 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.