SDKI Inc.
An in-depth study on the Energy trading and risk management (ETRM) market has been conducted to understand its situation in 2023.
Survey period: February 20-27, 2023
Survey company: SDKI Inc.
Survey Base: We surveyed 531 market players of all sizes.
Number of valid answers: 531
Survey method: 320 field surveys, 211 Internet surveys
Survey Respondents: The survey was conducted among companies based on revenue. Q: What is Energy Trading and Risk Management (ETRM)? What is the Energy Trading and Risk Management (ETRM) market size and what is the growth forecast to 2035?
Energy Trading and Risk Management (ETRM) is the use of integrated systems to form and execute commercial decisions. These systems enable data exchange between exchange, contract, credit, operations and accounting businesses. The energy trading and risk management (ETRM) market is anticipated to garner USD 1 billion in 2022, growing at a CAGR of 3% during the forecast period. Moreover, the global energy trading and risk management (ETRM) market is expected to reach US$2 billion by 2035.
Question: What are the factors driving the growth of the Energy Trading and Risk Management (ETRM) market?
Following are some of the key factors driving the growth of the Energy Trading and Risk Management (ETRM) market:
Price volatility of various energy sources has been a major factor driving the growth of the energy trading and risk management (ETRM) market. For example, OPEC’s average annual oil price of US$70 per barrel in 2021 will rise to US$100 per barrel in 2022 due to sanctions against Russia during the Russo-Ukrainian war and resulting energy supply shortages. Did. ETRM provides detailed insight into expected cash flows, exposures and more, helping buyers, treasurers and financial managers avoid unexpected losses due to fluctuating oil and gas prices.
Increasing global energy consumption
Growth of ERP (Enterprise Resource Planning)
Steady increase in world population
[Image 1: https://prtimes.jp/i/72515/2499/resize/d72515-2499-72b13a126d190cb4f14d-0.png&s3=72515-2499-eb9ea4243513c0f0f44e64787bcbf94f-1280×720.png] Question: What are the major classifications of the Energy Trading and Risk Management (ETRM) market?
The Energy Trading and Risk Management (ETRM) market can be segmented by type, application and operation. These categories are further divided into:-
By type
software
service
others
Based on type, the service segment is expected to hold the largest market share by the end of the forecast period. Many companies involved in the trading of commodities require services to meet their processes during the pre-sale and post-sale stages. These services, often in the form of customized IT solutions, help companies deliver projects cost-effectively and on time. Therefore, ample funding for IT infrastructure development in companies around the world is expected to drive the growth of this subcategory. For example, global spending on cloud IT infrastructure was about US$67 billion and is expected to grow to US$134 billion by 2026.
[Image 2: https://prtimes.jp/i/72515/2499/resize/d72515-2499-6707805b6d3d31b877c4-1.png&s3=72515-2499-e69397689a1945e9ba9ed51fcc0b269b-1280×720.png]
by application
electric power
Natural gas
Petroleum and products
others
Based on application, the electricity segment is expected to account for the largest market share at the end of the forecast period. Electricity is an important commodity that is an integral component of every industry. Therefore, the cost of energy used to generate electricity can affect the cost of all other products used in our daily lives. Increasing global electricity consumption is one of the most important reasons for the growth of this subcategory. For example, net electricity consumption rose from 23,537 TWh in 2018 to 25,344 TWh by the end of 2021.
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By operation
front office
Back office
middle office
Question: What are the market constraints for the Energy Trading and Risk Management (ETRM) market?
Lack of technical expertise among workers has been a major factor restraining the market growth of ETRM. Talent and skills shortages are estimated to cost the United States alone about US$9 trillion by 2030. Following are some of the factors constraining the growth of the Energy Trading and Risk Management (ETRM) market-
Expensive nature of ETRM solutions
Lack of standardization in the energy sector around the world
Q: Who are leading the Energy Trading and Risk Management (ETRM) market? What are some of the recent developments in the Energy Trading and Risk Management (ETRM) market?
Following are the companies that lead the Energy Trading and Risk Management (ETRM) market-
Allegro Development Corporation (ION Group)
Amphora, Inc.
Triple Point Technology Inc.
Openlink Financial LLC.
Eka Software Solutions.
Accenture
Ventyx (ABB Ltd)
Trayport Limited
FIS
Aspen Technology, Inc.
Below are some of the recent developments in the Energy Trading and Risk Management (ETRM) market:-
In September 2021, FIS was named a Chartis category leader among vendors of energy trading and risk management solutions.
In February 2020, Eka Software Solutions announced the launch of a new ETRM application on its cloud platform.
Q: Why is the North America region expected to offer the most lucrative opportunities in the Energy Trading and Risk Management (ETRM) market?
The energy trading and risk management (ETRM) market in North America region is expected to account for the largest market share during the forecast period. The boom in shale gas production in the US is expected to be a key growth driver for the regional market. U.S. shale market output has increased by 2 trillion cubic feet in just one year from 23 trillion cubic feet in 2020. Furthermore, production is projected to increase to 34 trillion cubic feet by 2050. Markets in the region are also expected to grow due to large investments and increased energy trading.
Question: Which other region is expected to hold a significant market share or exhibit significant growth in the Energy Trading and Risk Management (ETRM) market by 2035?
The Asia-Pacific region is expected to have the highest growth rate during the forecast period. Market growth in this region should occur as a result of economic developments in countries such as China and India. For example, according to the World Bank, India’s real GDP is expected to expand at a rate of 6.9% between 2022 and 2023. In addition, the need for strict regulation of energy trading and high energy price volatility are also leading to increased demand for ETRM in the Asia-Pacific region. In Japan, large imports of LNG are expected to contribute significantly to the growth of the country’s ETRM market. It is estimated that in 2021, about 20% of the world’s LNG imports, or about 101 billion cubic meters (bcm), will be imported to Japan.
The energy trading and risk management (ETRM) market in Europe is expected to grow mainly due to the development of the electricity industry in the region. For example, the European Union (EU) electricity generation in 2021 is estimated to be around 2786 terawatt hours (TWh).
[Image 4: https://prtimes.jp/i/72515/2499/resize/d72515-2499-14cde8a1a163d794717b-3.png&s3=72515-2499-1ef7598c807bdfb7d57c0a59a59e0faa-1280×720.png] About us:
SKI’s goal is to provide authoritative, in-depth research and insights. We not only focus on researching and providing detailed reports on growth indicators, challenges, trends, and the competitive landscape, but also work with our clients to develop business strategies for maximum growth and success. Achieve total
transformation. Our expertise is the result of years of working with companies of all sizes in various market sectors.
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