Commodities - Nordics

Nordics

The nominal value in the Commodities market is projected to reach US$1,899.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.01% resulting in a projected total amount of US$2,312.00bn 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 in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 6.83m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Nordics is experiencing a shift in customer preferences, trends, and local special circumstances.

Customer preferences: Customers in the Nordics are showing an increasing interest in environmentally sustainable investments, leading to a growing demand for commodities that align with ESG (Environmental, Social, and Governance) criteria. This trend is driven by a strong focus on corporate responsibility and ethical investing in the region.

Trends in the market: In the Nordics, there is a noticeable trend towards the trading of commodities with a focus on renewable energy sources such as wind and hydropower. This shift is influenced by the region's abundant natural resources and the government's initiatives to promote clean energy production. Additionally, there is a growing interest in carbon trading as countries in the Nordics aim to reduce their carbon footprint.

Local special circumstances: One of the unique aspects of the Commodities market in the Nordics is the strong regulatory environment that promotes transparency and accountability. This has led to a high level of investor confidence in the market, attracting both domestic and international participants. Furthermore, the presence of well-established financial institutions and a tech-savvy population has contributed to the development of sophisticated trading platforms in the region.

Underlying macroeconomic factors: The stable economic growth, low inflation rates, and high standard of living in the Nordics have created a favorable environment for investment in commodities. Additionally, the region's strong emphasis on innovation and technology has led to the development of advanced trading tools and platforms, making it easier for investors to access and trade commodities. Overall, the Commodities market in the Nordics is poised for further growth and development in the coming years.

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.