Energy Product Derivatives - Nepal

Nepal

The nominal value in the Energy Product Derivatives market is projected to reach US$16.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.29% resulting in a projected total amount of US$22.11bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.22 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 79.42k by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Nepal is showing signs of growth and evolution. Customer preferences in Nepal are shifting towards more diversified investment options, including Energy Product Derivatives, as investors seek to capitalize on the potential returns offered by this market.

Trends in the Energy Product Derivatives market in Nepal indicate a gradual increase in trading volume and interest from both institutional and retail investors. This can be attributed to the growing awareness and understanding of derivative products among market participants in the country. Local special circumstances, such as the government's push towards energy sector development and increasing demand for risk management tools in the market, are contributing to the expansion of the Energy Product Derivatives market in Nepal.

Underlying macroeconomic factors, including economic growth, regulatory reforms, and technological advancements, are creating a conducive environment for the development of the Energy Product Derivatives market in Nepal. These factors are enhancing market liquidity and attracting more participants to engage in derivative trading activities.

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.