Energy Product Derivatives - Philippines

Philippines

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$136.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.02% resulting in a projected total amount of US$166.30bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.28 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 531.00k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Philippines has been experiencing a notable growth in recent years.

Customer preferences: Traders and investors in the Philippines are increasingly turning to Energy Product Derivatives as a way to diversify their portfolios and hedge against volatility in the energy markets. The appeal of these financial instruments lies in their ability to offer exposure to energy commodities without the need for physical ownership.

Trends in the market: One key trend in the Philippines Energy Product Derivatives market is the growing interest in renewable energy derivatives. As the country aims to transition towards a more sustainable energy mix, market participants are showing a keen interest in derivatives linked to solar, wind, and other renewable energy sources. This trend is in line with global efforts to combat climate change and reduce carbon emissions.

Local special circumstances: The Philippines' geographical location makes it particularly vulnerable to the impacts of climate change, such as typhoons and rising sea levels. As a result, there is a strong push towards renewable energy development in the country, which is reflected in the increasing demand for renewable energy derivatives. Additionally, the government's support for renewable energy projects and initiatives further boosts the appeal of these derivatives in the market.

Underlying macroeconomic factors: The economic growth and industrial development in the Philippines are driving the demand for energy products, including derivatives. As the country's energy sector continues to expand, there is a growing need for risk management tools to navigate the inherent volatility in energy markets. This, coupled with the increasing awareness of environmental issues, is fueling the demand for Energy Product Derivatives in the Philippines.

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.