So, we would really appreciate hearing your opinions about, and experiences with, the various products and vendors that support energy and commodity trading activities around the globe.  The short electronic survey won’t take you long to complete and the final report will be freely available for you to check how your views match up with others.

To begin taking our survey, please click on the following link:

www.utilipoint.com/2/2011_CTRM_VPS_TY.

We do ask that you enter your name and contact details to help us validate your response. All replies are confidential.

Note: Responses from persons employed by, or associated with E/CTRM software vendors will NOT be considered.

A couple of notes regarding the video -

1) Apparently Gary had created a video blog posting about a year ago or so, but I’ve seen it only on YouTube, not on this blog site.

2) I say in the blog that we are using HD video.  We are indeed capturing the video in HD; unfortunately though, do to some software limitations, its not posted in HD…yet.

So, we would really appreciate hearing your thoughts about, and experiences with, the various products and vendors that support energy and commodity trading activities around the globe.  The short electronic survey won’t take you long to complete and the final report will be freely available for you to check how your views match up with others.

To begin taking our survey, please click on the following link:

www.utilipoint.com/2/2011_CTRM_VPS_TY.

We do ask that you enter your name and contact details to help us validate your response. All replies are confidential.

Note: Responses from persons employed by, or associated with E/CTRM software vendors will NOT be considered.

Version 2 of the Ancillary software Sourcebook is now complete and is available for download from this site here and UtiliPoint.com. We have also discovered a nice new service for sharing documents and it is available there. Commodity Point – sourcebook

July 2011 SourceBook: Trading & Risk Management Ancillary Vendors and Products V2

Unfortunately, establishing a definitive size for any market is difficult exercise, and is impossible to complete with absolute certainty. Market sizing, being a forward looking exercise, must be based upon numerous factors, including overall economic conditions, forces encouraging new market entrants, historical buying patterns of existing market participants, technology drivers encouraging new purchases, and the number and capabilities of the product vendors available to meet the needs of the market.

Despite these difficulties, we believe that our organization’s unique position in the market, that of researchers and analysts focused on the intersection of technology and the commodity trading and risk management markets, provides us the insights and data that allow us to provide a reasonable, independent and reliable assessment of the global market for CTRM products.

How Markets Have Grown

Since our last market sizing study was issued in 2009, much has taken place in commodity markets that has had a significant impact on the markets for CTRM software. 2009 was the year of financial turmoil as the financial crisis hit markets generally particularly impacting banks and other large institutional investors. Commodity prices declined rapidly and many hedge funds went out of business. The impacts of that financial crisis slowed the CTRM software market and created a need for more broad risk management capabilities, particularly credit risk. While 2009 was a slow year, the financial crisis did not appear to create a market dislocation event as we had seen in previous crises where CTRM sales came to a standstill, but it did certainly slow the growth in the market.

Not only did the existing CTRM market grow during 2010, but the market boundary also moved. It moved in several ways to create a larger CTRM market than ever before:

1. Cross-commodity trading increased, creating demand for new solutions amongst existing users for coverage for newly traded commodities;
2. More readily affordable CTRM solutions delivered as Saas or on a hosted basis encouraged bottom tier players who had previously been unable to afford a commercial solution into the market, a phenomenon observed across geographies and industry segments;
3. Price volatility and a tightening of rules brought new groups of users into the market including industrials, transportation companies and fuel users.

Another trend that seems to have emerged over the period was the growth of Asian-Pacific markets for CTRM software albeit mostly in the agricultural and softs area. None the less, the Asia-Pacific region is now a sizeable, more reliable, and growing geographic region for CTRM sales.

The CommodityPoint E/CTRM Market Size Forecast

CommodityPoint forecasts the total addressable market for CTRM software globally in 2011 to be $452 million, and estimates that some $321 million may be spent on the procurement of commercially available CTRM software this year. Note that these numbers represent software license fee expenditure and equivalents (service fees in the case of SaaS, for example) only. This represents robust overall growth (11 percent) over our estimate of $290 million spent on procuring commercially available CTRM software in 2010. We see energy remaining the largest market for CTRM (ETRM) software at around 86 percent of the total market size for commercially available software. North America remains the largest geographic market at 55 percent of the market for commercially available software closely followed by Europe at 34 percent. The fastest growth appears to be taking place in Europe and Asia-Pacific, which is now a significant market at nine percent of the market for commercially available CTRM software. Growth rates varied depending on geographic region and commodity group.

Our methodology and approach for estimating E/CTRM software market size is reviewed in detail in the free report sponsored by Brady PLC and Eka Software Solutions and it is largely based on a bottom up approach analyzing more than 80 vendors in the space.

Summary

CommodityPoint remains bullish about the prospects for increased growth in all CTRM software markets as the business issues and procurement drivers remain in place and, unless there is some unexpected event or set of circumstances that impact growth, we expect growth rates on average of around 6 percent to 8 percent for the next two-to-three years.

Our analysis suggests that, when adding in associated services and peripheral software sales, the broader CTRM software market is likely in excess of $2 billion globally annually.

Note: The market sizing figures presented in this study are our best estimates based on the methodology and approach documented in the free report available at www.utilipoint.com/specialpages/CMPT_2011_MarketSizingReport.asp. They should be treated as estimates and are subject to change should additional information become available.

¹Global CTRM Market Size 2010 – 2011 CommodityPoint Market Research and Report kindly sponsored by Brady PLC and Eka Software Solutions.

]]> http://www.ctrmblog.com/2011/05/forecasting-the-ectrm-software-market-size/feed/ 0 http://www.ctrmblog.com/2011/05/2011-commoditypoint-ctrm-market-sizing-study/ http://www.ctrmblog.com/2011/05/2011-commoditypoint-ctrm-market-sizing-study/#comments Mon, 16 May 2011 13:46:54 +0000 Gary M. Vasey http://www.ctrmblog.com/?p=646 The 2011 CommodityPoint CTRM Market Sizing Study report is now available for download;

The free version of the report holds back some detailed market sizing data which is available in a for purchase version at the UtiliPoint website.

Or at the UtiliPoint website.

The latest edition contains many new listings bringing the total number of listings to well over 45.

Finally, the event is pretty much fully sponsored too with SolArc and Eka signing up as full sponsors and Pioneer Solutions agreed to sponsor one of the coffee breaks.

For more conference news please visit the CTRM Conference website where you can also register to attend.