Energy Product Derivatives - Montenegro

Montenegro

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$1.57bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.04% resulting in a projected total amount of US$2.10bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.09 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 18.61k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Montenegro is experiencing a growing interest from investors and market participants.

Customer preferences: Investors in Montenegro are increasingly turning to Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The flexibility and potential for high returns offered by these financial instruments are attracting both institutional and retail investors in the country.

Trends in the market: One notable trend in the Montenegro Energy Product Derivatives market is the increasing demand for derivatives linked to renewable energy sources. As the global shift towards sustainable energy continues, investors in Montenegro are showing a preference for derivatives related to solar, wind, and hydropower. This trend aligns with the country's efforts to promote renewable energy production and reduce carbon emissions.

Local special circumstances: Montenegro's small but growing economy presents unique opportunities and challenges for the Energy Product Derivatives market. The country's strategic location in the Balkans region and its efforts to modernize its energy infrastructure make it an attractive market for derivative products. However, the relatively small size of the market and the regulatory environment pose challenges for market participants looking to expand their presence in Montenegro.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Montenegro is also influenced by broader macroeconomic factors such as GDP growth, inflation rates, and foreign direct investment. As the country continues to attract foreign investment in its energy sector and diversify its economy, the demand for Energy Product Derivatives is expected to grow. Additionally, government policies and initiatives to promote energy efficiency and sustainability will likely drive further innovation in the derivatives market in Montenegro.

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.