Energy trading & risk management (ETRM) is a type of software applications, tools and frameworks that support business routes related to trading energy commodities. It enables data swap among traders & retailers, generators or operations, contract, and accounting functions. The ETRM system covers composite trading requirements of a slackened energy market & helps market contributors to trade in the complete range of contracts across the world. The system also entails inclusive risk management strategies & policies, scheduling & settlement execution and event and trade identification. It contains comprehensive risk management event, plan & trade identification, settlement execution and scheduling transportation. Moreover, ETRM solutions offer consulting services for price transparency, market monitoring, and regulatory compliance. These can be employed to manage the value chain of the energy business. These systems are established to understand the authentic risks involved in the value chain and offer the best options to conquer these risks.
According to study, “Global Energy Trading & Risk Management (ETRM) Market, By Commodities (Power, Natural Gas, Natural Gas Liquids, Coal) By Functional Types, By Vendor Types & By Regions – Trends & Forecast – 2015-2020” the major companies currently operating in the global energy trading & risk management market are OpenLink Financial LLC, KYOS Energy Consulting, Eka Software Solutions, ABB’s Enterprise Software Product Group, Tigernix Triple Point Technology, SunGard Financial Systems, The MathWorks Inc., Quantrisk Corp., Open Access Technology International Inc., ComFIn Software GmbH, Allegro Development Corporation, Brady plc, APLUS Energy, Pte Ltd., Likron, Murex, Paragon Energy Software – An MCG Company, MCG Energy Solutions, Powel, Quorum Business Solutions, Inc., ProCom GmbH, ComFin Software, Tech Mahindra, Transition Technologies S.A., VisoTech, Unicorn Systems, Sinergetica Srl, SoftSmiths, C Square International, Inc., Enuit LLC, Hivedome Ltd., Aspect Enterprise Solutions Inc., Momentum3 LLC, Igloo Trading Solutions, IntStream Oy, InstaNext Inc., Kisters, Blacklight Systems, Accenture, Amphora Inc., Ignite ETRM LLC, SAP, Ventyx, Sapient, Calvus, Abacus Solutions Inc., Trayport. Key players in the global market are focusing on introducing distinguished products like Public private partnership (PPP) to retain a larger market share.
Based on commodities, global energy trading & risk management market is segmented into power, natural gas liquids, natural gas and coal etc. The major share of ETRM software is in power sectors, followed by the oil & products and natural gas segments. Based on the end-users, market is segmented into energy producers, large energy consumers, energy suppliers, energy traders and others.
The global energy trading & risk management market is primarily driven by the emergence of vertical markets, followed by government regulations. Apart from the major benefits, some of the restraints include lack of new market participants and energy renaissance. Additionally, few of the new opportunities include alternative sources of energy, increase in energy demand and emerging markets.
The North American region is the prime consumption place, with an expenditure market share nearly 38% in 2016. The European region is the second major consumption place with the consumption share of 31%. In 2018, the revenue of global ETRM market was reached at US $1260 million and it is expected that it will be reached at US $1,351.6 million, by 2020.
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Ankur Gupta, Head Marketing & Communications