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Energy Trading, Transaction, and Risk Management (ETRM) Market

Massive scope for applications in crude oil, natural gas, electric power, refined petrochemical products, and NGLs, products in the global energy trading, transaction, and risk management (ETRM) market is creating lucrative opportunities for the industry development. Software tools and products in the global energy trading, transaction, and risk management (ETRM) market are receiving high demand owing to the challenging industry and regulatory environments. These software tools offer multiple benefits to players in energy and petrochemical industries such as regulatory compliance assistance, speeding up of the trading activities, and reduction in the risk coverage. These tools efficiently use latest technologies in order to analyze and manage sensitive data acquired from various energy production facilities such as oil wells, production facilities and refineries, and retail outlets.

Utilization of the software tools in the global energy trading, transaction, and risk management (ETRM) market can positively influence the risk management and trading operations. Vendors and developers operating within the global energy trading, transaction, and risk management (ETRM) market are focused on developing smarter and enhanced tools that offer intuitive trading systems, advanced compliance and risk management resources, and front and back office support tools for scheduling and logistics operations. Certain products in the global energy trading, transaction, and risk management (ETRM) market also offer back office invoicing, settlement, and application support and development facilities for the end users.

Global Energy Trading & Risk Management Market: Overview

Energy trading and risk management (ETRM) is a category of software applications, frameworks, and tools that support business processes related to trading energy commodities. It consists of a set of functions that vary depending on which commodity is traded, assets that are used in the business, location of those assets, and company’s business strategy and business processes associated with the same.

The ETRM system is inclusive of trading requirements of a liberalized energy market and thus help market participants to carry out trade encompassing full range contracts across the globe. It also includes comprehensive risk management plan, event and trade identification, scheduling transportation, and settlement execution. Moreover, ETRM solutions provide consulting services for price transparency, market monitoring, and regulatory compliance.

The market study presents a granular analysis of the global ETRM market looking into market drivers, challenges, and growth trends to have a bearing on this market. The research phase included data collection from reliable sources, which was later scrutinized to present a satisfactory conclusion about the market’s growth between 2016 and 2024.

Global Energy Trading & Risk Management Market: Trends and Opportunities

The global ETRM market is driven by the ability of ETRM to provide an end-to-end solution for the effective execution of energy trading activities. Furthermore, need for energy business to present significant returns and need to maintain an organization’s hedging portfolio are further boosting the ETRM market.

Moreover, ETRM solutions can alleviate the pitfalls associated with energy trading. Energy trading involves a high degree of risk and profitability margins are subject to fluctuations in the market. Complex supply chains, volatile prices of energy, evolving regulatory requirements are some of the major hurdles that players in the energy business are faced with. In this scenario, ETRM solution providers can use prove volatility to their advantage and design unique solutions that are unique to the business requirement of a firm. The other advantages of ETRM include its ability to record trading and equity data in an efficient manner as compared to manual recording, which is prone to errors.

However, lack of technical expertise is one of the key factors challenging the market’s growth. Nevertheless, rising financial risks and growth of major business organizations will extend growth opportunities to this market.

In terms of operations, the ETRM market can be segmented into front office, back office, and middle office. The front office carries out operations pertaining to deal capture, deal evaluation, position management, and price discovery. The middle office performs operations related to credit risk, enterprise risk, and market risk. The back office carries out accounting operations and conducts the inventory and derivative accounting tasks.

Global Energy Trading & Risk Management Market: Regional Outlook

In terms of geography, the ETRM market is divided into North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America. Asia Pacific is a relatively new market for energy trading business. Thus, the region is expected to display a demand for ETRM solutions over the forecast period.

North America and Europe ETRM markets are expected to further expand led by significant investments from trading firms that are present in these regions. The shale gas boom in the U.S. and volatility of energy markets are also fuelling the growth of ETRM market in these regions.

Global Energy Trading & Risk Management Market: Competitive Landscape

Key players in the global ETRM market include Allegro Development Corporation, amphora Inc., Triple Point Technology Inc., Openlink LLC, and Eka Software Solutions.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Energy Trading Risk Management Market