Energy Product Derivatives - New Zealand

New Zealand

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$78.12bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.49% resulting in a projected total amount of US$88.34bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.25 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 351.20k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the picturesque landscapes and strong environmental consciousness in New Zealand, the Energy Product Derivatives market in the country has been witnessing notable developments. Customer preferences in New Zealand are increasingly leaning towards sustainable energy sources and environmentally friendly practices.

This shift in consumer behavior is driving the demand for energy product derivatives that are linked to renewable energy sources such as wind, solar, and hydroelectric power. Customers are showing a growing interest in derivatives that align with their values of sustainability and eco-friendliness. Trends in the market indicate a rising popularity of energy product derivatives that offer exposure to the volatility of renewable energy markets.

Investors in New Zealand are seeking opportunities to capitalize on the fluctuations in renewable energy prices, leading to a surge in trading activities involving these derivatives. Additionally, there is a growing demand for customized derivative products tailored to specific renewable energy projects in the country. Local special circumstances, such as the government's strong emphasis on clean energy initiatives and carbon reduction targets, are playing a significant role in shaping the Energy Product Derivatives market in New Zealand.

The country's commitment to transitioning towards a low-carbon economy is creating favorable conditions for the growth of derivatives linked to renewable energy assets. Furthermore, the presence of well-established renewable energy infrastructure in New Zealand is attracting both domestic and international investors to the energy derivatives market. Underlying macroeconomic factors, including global trends towards sustainable investing and increasing awareness of climate change risks, are also influencing the Energy Product Derivatives market in New Zealand.

As investors worldwide prioritize environmental considerations in their portfolios, the demand for energy derivatives tied to renewable sources is expected to continue its upward trajectory. Moreover, New Zealand's strategic position in the Asia-Pacific region makes it a key player in the renewable energy market, further bolstering the growth of energy product derivatives in the country.

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.