Energy Product Derivatives - Southern Europe

Southern Europe

The nominal value in the Energy Product Derivatives market is projected to reach US$1.93tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.40% resulting in a projected total amount of US$2.51tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.05 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 40.61m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the dynamic landscape of Southern Europe, the Energy Product Derivatives market is experiencing notable trends and developments. Customer preferences in Southern Europe for Energy Product Derivatives are heavily influenced by the region's focus on renewable energy sources and sustainability.

Customers are increasingly seeking derivatives that align with environmental regulations and support the transition to cleaner energy options. Trends in the market indicate a growing demand for Energy Product Derivatives linked to solar and wind energy. As Southern Europe continues to invest in renewable energy projects, the market for derivatives associated with these sources is expanding.

Additionally, there is a noticeable shift towards more complex derivatives that offer customized risk management solutions for energy companies operating in the region. Local special circumstances, such as the geographical advantages of Southern Europe for solar power generation, play a significant role in shaping the Energy Product Derivatives market. Countries like Spain and Italy have abundant sunshine, making them ideal locations for solar energy projects.

This unique circumstance drives the demand for derivatives linked to solar energy production in these countries. Underlying macroeconomic factors, including government policies and regulatory frameworks, also impact the Energy Product Derivatives market in Southern Europe. Supportive policies for renewable energy development, such as feed-in tariffs and subsidies, encourage investment in clean energy projects and subsequently drive the demand for related derivatives.

Economic stability and regional cooperation further contribute to the growth of the market by fostering investor confidence and market liquidity.

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.