Energy Product Derivatives - Turkey

Turkey

The nominal value in the Energy Product Derivatives market is projected to reach US$7.55bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.65% resulting in a projected total amount of US$7.80bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.23 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 32.84k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Turkey is witnessing a notable increase in trading activities and market participation.

Customer preferences: Market participants in Turkey are showing a growing interest in Energy Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. Traders are increasingly looking for opportunities to capitalize on price movements in energy products without directly owning physical assets.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Turkey is the adoption of advanced trading technologies and platforms. This trend is driven by the need for faster and more efficient trading executions. Additionally, there is a noticeable shift towards renewable energy derivatives as Turkey aims to expand its renewable energy capacity in line with global sustainability goals.

Local special circumstances: Turkey's strategic geographic location between Europe and Asia positions it as a key player in the energy market. The country's energy sector is undergoing significant reforms to enhance efficiency and attract foreign investments. This has created a favorable environment for the development of Energy Product Derivatives trading in Turkey.

Underlying macroeconomic factors: The growth of the Energy Product Derivatives market in Turkey is also influenced by macroeconomic factors such as energy demand, government policies, and global energy prices. Turkey's energy consumption continues to rise, driving the need for risk management tools like derivatives. Government initiatives to promote energy diversification and sustainability further support the expansion of the derivatives market. Moreover, fluctuations in global energy prices impact trading activities in the Turkish market, leading to increased demand for energy derivatives as a risk management tool.

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.