Energy Product Derivatives - Thailand

Thailand

The nominal value in the Energy Product Derivatives market is projected to reach US$157.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.70% resulting in a projected total amount of US$163.00bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.25 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 674.40k by 2029.

Market

Region

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Analyst Opinion

The Energy Product Derivatives market in Thailand has been experiencing steady growth and development in recent years.

Customer preferences: Customers in Thailand are increasingly looking to hedge their risks and diversify their investment portfolios through Energy Product Derivatives, aligning with the global trend of using financial derivatives for speculation or risk management purposes.

Trends in the market: One notable trend in the Energy Product Derivatives market in Thailand is the growing demand for renewable energy derivatives, reflecting the country's efforts to transition towards a more sustainable energy sector. This trend is in line with the increasing focus on environmental, social, and governance (ESG) factors globally.

Local special circumstances: Thailand's geographical location and climate make it particularly susceptible to energy supply disruptions, leading market participants to actively engage in Energy Product Derivatives to mitigate potential risks associated with energy price volatility. Moreover, the government's initiatives to promote energy security and efficiency have further fueled the demand for derivatives in the energy sector.

Underlying macroeconomic factors: The overall economic stability and growth prospects in Thailand have provided a conducive environment for the development of the Energy Product Derivatives market. As the country continues to attract foreign investments and foster innovation in the energy sector, the demand for derivatives is expected to remain robust. Additionally, regulatory reforms and advancements in technology are shaping the landscape of the derivatives market in Thailand, offering new opportunities for market participants to manage their exposure to energy price fluctuations.

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.