Energy Product Derivatives - Sweden

Sweden

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$184.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.39% resulting in a projected total amount of US$239.80bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$14.14 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 14.95k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Sweden is witnessing a notable shift in customer preferences towards renewable energy products, reflecting a global trend towards sustainability and environmental consciousness.

Customer preferences: Customers in Sweden are increasingly gravitating towards energy product derivatives that are linked to renewable sources such as wind and solar energy. This preference aligns with the country's ambitious goals to reduce carbon emissions and transition towards a more sustainable energy sector. As a result, there is a growing demand for derivatives linked to green energy projects and initiatives.

Trends in the market: One of the key trends shaping the Energy Product Derivatives market in Sweden is the emphasis on innovation and technology. Market participants are actively exploring new financial instruments and derivatives that can help manage risks associated with the volatility of renewable energy sources. Additionally, there is a growing interest in derivatives linked to energy storage solutions, reflecting the need to efficiently store and manage electricity generated from intermittent sources.

Local special circumstances: Sweden's unique position as a leader in renewable energy adoption has a significant impact on the Energy Product Derivatives market. The country's robust infrastructure for renewable energy generation, coupled with favorable government policies and incentives, creates a conducive environment for the development of derivative products linked to green energy. Moreover, Sweden's strong commitment to sustainability drives market players to innovate and offer specialized energy derivatives tailored to the needs of environmentally conscious investors.

Underlying macroeconomic factors: The Energy Product Derivatives market in Sweden is also influenced by broader macroeconomic factors such as global energy prices, regulatory changes, and geopolitical developments. Fluctuations in energy prices, both conventional and renewable, can impact the demand for energy derivatives in the market. Moreover, regulatory initiatives aimed at promoting renewable energy integration and carbon pricing mechanisms play a crucial role in shaping the landscape for energy product derivatives in Sweden. Geopolitical events and market dynamics at the regional and international levels can also have ripple effects on the Energy Product Derivatives market in Sweden, highlighting the interconnected nature of the global energy market.

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.