Energy Product Derivatives - Switzerland

Switzerland

The nominal value in the Energy Product Derivatives market is projected to reach €224.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -1.25% resulting in a projected total amount of €211.10bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to €0.26 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€24,960.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 0.95m by 2029.

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Analyst Opinion

Switzerland, known for its picturesque landscapes and banking sector, also boasts a dynamic Energy Product Derivatives market.

Customer preferences: Traders in Switzerland show a strong inclination towards Energy Product Derivatives as a way to hedge against price fluctuations in the energy sector and speculate on future price movements. This preference is driven by the desire to manage risk and potentially generate profits in a volatile market environment.

Trends in the market: The Energy Product Derivatives market in Switzerland is witnessing a growing trend towards renewable energy derivatives. This shift is in line with global efforts to transition towards sustainable energy sources and reduce carbon emissions. As Switzerland continues to focus on sustainability and environmental conservation, the demand for renewable energy derivatives is expected to rise.

Local special circumstances: Switzerland's unique position as a landlocked country with limited natural resources plays a significant role in shaping the Energy Product Derivatives market. The country heavily relies on energy imports, making it particularly sensitive to global energy price fluctuations. This reliance on imports drives market participants to actively engage in Energy Product Derivatives to manage exposure to price risks.

Underlying macroeconomic factors: The stability of the Swiss economy and its status as a global financial hub contribute to the development of the Energy Product Derivatives market. With a strong regulatory framework and a well-established financial infrastructure, Switzerland provides a conducive environment for market participants to trade energy derivatives efficiently. Additionally, the country's commitment to sustainability and green initiatives further propels the demand for renewable energy derivatives in the market.

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.