Energy Product Derivatives - Germany

Germany

The nominal value in the Energy Product Derivatives market is projected to reach €1.57tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.11% resulting in a projected total amount of €1.92tn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to €0.52 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€24,700.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 3.09m by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Germany has been experiencing significant growth and evolution in recent years.

Customer preferences: Customers in Germany are increasingly turning to Energy Product Derivatives as a way to hedge against price fluctuations and manage risk in the volatile energy market. With a strong emphasis on sustainability and renewable energy sources, there is a growing demand for derivatives linked to green energy products.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Germany is the shift towards more complex and customized derivative products. Investors are looking for tailored solutions to meet their specific risk management needs, leading to a rise in structured products and exotic options in the market. Additionally, there is a growing interest in trading energy derivatives electronically, driving the need for advanced trading platforms and technologies.

Local special circumstances: Germany's transition to renewable energy, known as the Energiewende, is a major factor shaping the Energy Product Derivatives market in the country. The government's ambitious targets for reducing carbon emissions and increasing the share of renewables in the energy mix are driving innovation and creating new opportunities in the derivatives market. As a result, there is a focus on developing derivatives linked to solar, wind, and other green energy sources.

Underlying macroeconomic factors: The Energy Product Derivatives market in Germany is also influenced by broader macroeconomic factors such as energy policy, regulatory developments, and global market trends. Changes in government policies, international energy prices, and geopolitical events can all have a significant impact on the demand for energy derivatives in the country. As Germany continues to lead the way in renewable energy adoption, the Energy Product Derivatives market is expected to further expand and diversify in response to these factors.

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.