Energy Product Derivatives - South Africa

South Africa

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$135.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.79% resulting in a projected total amount of US$155.40bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$5.20 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 27.02k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the evolving landscape of financial markets in South Africa, the Energy Product Derivatives market is experiencing notable developments. Customer preferences in South Africa are leaning towards more diversified investment options, prompting an increased interest in Energy Product Derivatives.

Investors are seeking opportunities to hedge against market volatility and capitalize on price movements in the energy sector. Trends in the market indicate a growing demand for Energy Product Derivatives, driven by the country's reliance on energy resources and the need for risk management tools. As the energy sector continues to play a crucial role in South Africa's economy, market participants are actively exploring derivative instruments to optimize their investment strategies.

Local special circumstances, such as regulatory changes and government initiatives to promote derivatives trading, are influencing the growth of the Energy Product Derivatives market in South Africa. These factors are creating a conducive environment for market expansion and fostering innovation within the financial sector. Underlying macroeconomic factors, including economic growth projections, energy consumption patterns, and global market dynamics, are shaping the trajectory of the Energy Product Derivatives market in South Africa.

As the country navigates through economic shifts and policy reforms, the demand for derivative products linked to energy commodities is expected to continue on an upward trend.

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.