Commodities - Europe

Europe

The nominal value in the Commodities market is projected to reach €20,330.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.22% resulting in a projected total amount of €25,000.00bn by 2029.
The average price per contract in the Commodities market amounts to €0.03 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€49,270.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 750,500.00k by 2029.

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Analyst Opinion

Amidst the diverse financial landscape in Europe, the Commodities market is experiencing significant growth and evolution. Customer preferences in the Commodities market in Europe are heavily influenced by a desire for portfolio diversification, hedging against inflation, and speculation.

Investors seek to spread risk by including commodities in their investment portfolios, especially during times of economic uncertainty. Additionally, the attraction of potentially high returns from price fluctuations in commodities drives speculative trading in the market. Trends in the Commodities market in Europe are shaped by various factors.

One prominent trend is the increasing popularity of environmentally friendly commodities, such as renewable energy derivatives. This shift is driven by growing awareness of climate change and the push for sustainable investing. Moreover, the integration of technology in trading platforms has made it easier for investors to participate in the market, leading to higher trading volumes and liquidity.

Local special circumstances in Europe play a significant role in the development of the Commodities market. For example, the presence of major financial hubs like London, Frankfurt, and Zurich facilitates easy access to commodity trading for investors across the region. Additionally, regulatory frameworks set by the European Union impact trading practices and market dynamics, influencing the behavior of market participants.

Underlying macroeconomic factors also contribute to the trends in the Commodities market in Europe. Economic indicators such as interest rates, inflation, and geopolitical events have a direct impact on commodity prices and trading volumes. For instance, fluctuations in the Eurozone economy can lead to shifts in demand for commodities as investors adjust their risk exposure.

Overall, the Commodities market in Europe is a dynamic and evolving landscape driven by customer preferences, market trends, local circumstances, and macroeconomic 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.