Energy Product Derivatives - Nordics

Nordics

The nominal value in the Energy Product Derivatives market is projected to reach US$545.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.36% resulting in a projected total amount of US$643.60bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.36 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 1.65m by 2029.

Market

Region

Region comparison

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Analyst Opinion

The Energy Product Derivatives market in Nordics is witnessing a significant shift in customer preferences, driving various trends in the market.

Customer preferences: Customers in the Nordics region are increasingly gravitating towards renewable energy sources, leading to a growing demand for derivatives linked to green energy products. This shift is largely driven by a strong emphasis on sustainability and environmental consciousness among consumers and businesses alike.

Trends in the market: As the Nordics region aims to reduce its carbon footprint and achieve energy independence, there is a notable surge in the trading of derivatives linked to wind and solar energy products. Market participants are actively seeking opportunities to invest in these sustainable energy sources, reflecting a broader global trend towards clean energy investments.

Local special circumstances: The Nordics region boasts abundant natural resources, particularly in hydropower and biomass, which play a significant role in shaping the energy market dynamics. Derivatives linked to these traditional energy sources continue to be popular among investors, providing stability and hedging opportunities in the market.

Underlying macroeconomic factors: The supportive regulatory environment in the Nordics, with strong government incentives for renewable energy projects, is a key driver of the energy derivatives market growth. Additionally, the region's robust infrastructure and technological advancements in energy production contribute to the overall attractiveness of energy product derivatives in the market.

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.