About Commodity Trading Services
The market for commodity trading services has grown enormously worldwide in recent years. A commodity refers to goods or services that are used in commerce and exchanged for certain other goods in the market. Raw materials are primarily used as input for the manufacture or processing of multiple goods or services. Commodity services are types of services that enable buyers or sellers to meet the other party to trade a commodity or commodity-related asset. Traditional examples of commodities are gold, crude oil, zinc, lead, silver, natural gas, and cotton. Nowadays, several brokerage firms offer platforms and commodity exchanges for trading goods instead of physically delivering goods. The ability of companies to respond to both customer needs and adverse market conditions is an important growth driver. Commodity trading and risk management help to meet the above-mentioned requirements for companies and thus create demand on the world market. In addition, the need to comply with financial regulations and corporate governance guidelines has also increased the demand for commodity trading and risk management.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are exploring the market by adopting expansions, investments, new service launches, and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions across the globe to gain a competitive advantage through combined collaborations. Analyst at AMA Research estimates that European Manufacturers will contribute the maximum growth to Global Commodity Trading Services market throughout the forecasted period. Established and emerging Manufacturers should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Vitol Group (Switzerland), Louis Dreyfus Company (Netherlands), Glencore (Switzerland), Mercuria (Switzerland), Cargill (United States), Trafigura (Singapore), Gunvor (Switzerland), Koch Industries (United States), Bunge Limited (United States), ADM (United States), Mabanaft Limited (United Kingdom), COFCO Group (China) and Wilmar International (Singapore) are some of the key players that are part of study coverage.
Segmentation Overview
AMA Research has segmented the market of Global Commodity Trading Services market by Type (Metals, Energy, Agricultural and Others), Application (Business and Individuals) and Region.
On the basis of geography, the market of Commodity Trading Services has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Organization Size, the sub-segment i.e. Large Enterprises will boost the Commodity Trading Services market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
A Surge in Demand for Diversifying a Portfolio with Advance Commodities over Traditional Securities
Market Growth Drivers:
The Rise in Financial Awareness and Growing Need for Financial Compliance and Adherence to Corporate Governance Policies
Challenges:
Higher Competition and Higher Liquidity Risks
Restraints:
Stringent Government Regulations and Economic Slowdown Has Led To the Halt of Industrial Activities
Opportunities:
The Emergence of Artificial Intelligence (AI), Internet of Things (IoT), and Big Data and The Rising Adoption of Commodity Trading Platforms in Developing Regions
In January 2020, China's Zhengzhou Commodity Exchange had introduced options for rapeseed meal and steam coal in the country to provide hedging instruments in the energy sector. In addition, the National Stock Exchange (NSE) in India had also introduced options derivative contracts and increased market participation to hedge the risks of commodities traded in the market.
Key Target Audience
Venture Capitalists and Private Equity Firms, New Entrants/Investors, Analysts and Strategic Business Planners, Providers of Commodity Trading Services, Government Regulatory and Research Organizations and End-Use Industries
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.