Commodities

The nominal value in the Commodities market is projected to reach US$571.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.76% resulting in a projected total amount of US$687.50bn by 2029.
The average price per contract in the Commodities market amounts to US$0.30 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 2.10m by 2029.

Definition:

The commodities market refers to derivatives of commodities. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of Gold, an investor could own a derivative of Gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The commodities market comprises derivatives of precious metals, industrial metals, energy products, agricultural products & the Emission Trade System. The segments of precious metals, industrial metals, energy products, and agricultural products are also providing price data of popular specific derivatives. The segment data of the Emission Trade System (ETS) is only provided for countries where an ETS is in place (therefore the number of countries where data is shown is reduced in comparison to other segments).

Additional information:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year) as well as the average notional value per contract. Furthermore, the share of futures and options is provided for these KPIs to display even more insights into this market.

Options & Futures
Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

Physical commodities
Other Derivative types
other Commodity Types

The Commodities market in Ireland has been experiencing a notable shift in recent years, reflecting global trends in financial derivatives trading.

Customer preferences: Irish investors have shown a growing interest in commodities as an alternative investment option, seeking diversification in their portfolios and hedging against market volatility. This preference aligns with the broader global trend of investors turning to commodities for potential returns uncorrelated with traditional asset classes.

Trends in the market: One significant trend in the Irish Commodities market is the increasing popularity of trading in energy derivatives, particularly oil and natural gas. This trend is driven by geopolitical events impacting global energy markets and the heightened focus on sustainable energy sources. Additionally, there is a rising demand for agricultural commodity derivatives, reflecting Ireland's strong ties to the agriculture sector and the importance of commodities like wheat and corn in global trade.

Local special circumstances: Ireland's position as a key player in the European financial landscape, particularly post-Brexit, has influenced the development of its Commodities market. The country's robust regulatory framework and well-established financial infrastructure have attracted market participants looking for stability and access to the broader European market. Moreover, the presence of multinational corporations and financial institutions in Ireland has contributed to the sophistication and liquidity of the Commodities market.

Underlying macroeconomic factors: The economic growth and stability in Ireland have bolstered investor confidence in the Commodities market, providing a conducive environment for trading activities. Additionally, the country's strategic location and strong trade relationships within the European Union have facilitated the flow of capital and investment into the Commodities market. Furthermore, Ireland's focus on innovation and technology in the financial sector has enhanced market efficiency and accessibility for investors, driving further growth in the Commodities 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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.