Home Commodities Commodity Contracts Brokerage Market Size Worth $1210.4 Billion by 2033; Rising Digitalization...

Commodity Contracts Brokerage Market Size Worth $1210.4 Billion by 2033; Rising Digitalization of Trading Activities to Propel Growth

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The Brainy Insights

The Brainy Insights

Commodity contracts brokerage market size from USD 502 billion in 2023 to USD 1210.4 Billion in 10 years. Rising digitalization of trading activities in the global market will drive the Commodity Contracts Brokerage market’s growth in the period forecasted.

Newark, Feb. 28, 2024 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 502 Billion Commodity Contracts Brokerage market will reach USD 1210.4 Billion by 2033. Rising geopolitical tensions in the global market is the main propellers that may boost the growth of the Commodity Contracts Brokerage Market. Rising geopolitical tensions may boost the growth of the Commodities Contracts Brokerage Market. Geopolitical tensions include political uncertainties, rivalries between the countries, disputes, and pitfalls among intra-nations and international and others. Thus businesses seek the help of these brokerage firms to adapt to changing trade scenarios, diversify portfolios, and other major regulatory changes. This leads to fuelling up the growth of the Commodities Contracts Brokerage Market in the long run.

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Key Insights on Commodity Contracts Brokerage Market

North America dominated the global Commodity Contracts Brokerage market, accounting for 34% of the total market.

Owing to the settlement of well-established players in the region, financial market innovations and readiness to adapt towards regulatory changes in the North American market. Whereas, Asia Pacific is the fastest growing region post North America, owing to increasing numbers of customers in India, China, Japan, and other Asia Pacific countries

Cloud has dominated the market with the most significant market thereby acquiring 45.1% of the market share in 2023.

The dominant sector in the market is the Cloud, securing a substantial 45.1% share in 2023. This is attributed to the growing utilization of cloud services for storing and managing commodities market updates. It is also recognized as the fastest-growing segment, primarily propelled by the rising adoption of commodities trading among large-scale businesses worldwide. The increasing awareness of the importance of secure and safe transactions, coupled with the trend of migrating updates to the cloud, significantly contributes to the Cloud segment’s rapid expansion.

Enterprise Segment dominated the market, accounted for the largest share of the market, with a market share of 45.76% in the year 2023.

The Enterprise Segment is led by the dominance of Large Enterprises, securing approximately 45.76% of the market share. This leadership position is attributed to the substantial investments and capital at their disposal. The significant financial resources enable large enterprises to have a higher risk-taking capacity, influencing the likelihood of both profits and losses. The prevalence of large enterprises in this segment is a result of the escalating number of these entities making substantial investments, thereby establishing their supremacy in the Enterprise Size category. Whereas, Small and Medium-sized Enterprises (SMEs) represent the fastest-growing segment in the market. This growth is fueled by factors such as globalization, supportive government policies, heightened awareness and adoption of technology, and an increasing willingness among SMEs to take on more significant risks.

Brokerage firms dominated the market, accounted for the largest share of the market, with a market share of 43.12% in the year 2023.

The End-User Industry is predominantly led by brokerage firms, commanding a substantial 43.12% of the market share. This segment is also witnessing rapid growth, primarily driven by the dual role played by brokerage firms as both suppliers of tools and advisers to other firms. These brokerage entities not only offer advice to investment firms regarding commodities but also provide comprehensive analyses encompassing charts, graphs, trends, and forecasts based on the performance of various commodities.

Get additional highlights on the growth strategies adopted by vendors and their product offerings: https://www.thebrainyinsights.com/report/commodity-contracts-brokerage-market-13999

Latest Development:

• In Oct 2023, MCX (Multi Commodity Exchange) of India, introduced a web-based commodity derivative platform (CDP). The main objective of this platform launch was to ensure a smooth transition whilst using the platform and enable members to set connections thereby ensuring readiness towards the customers using the platform

• In Sept 2022, CME Group launched event contracts for trading Global Benchmark Products. The main objective behind this launch was to provide retail investors with less complex ways to get exposure and gain experience in CME commodity products

• In Dec 2020, NSE launched its first agricultural commodity futures contract. The launch was made on Crude Degummed Soybean oil (CDSO futures). India was the largest importer of edible oils globally. CDSO thus was an instrument for hedging price risk Soybean Oil companies.

Market Dynamics

Drivers: Rising digitalization of trading activities

Rising digitalization of trading is one major factor that boosts the growth of the Commodities Contracts Brokerage Market. In the current scenario, almost all the brokerage firms went towards online transactions for buying/selling of stocks, shares, ETFs, Mutual funds, and others. Further, whilst trading in the commodities market, the buyers/sellers also get advice and solutions for their products. This in turn also fuels the growth of the Commodities Contracts Brokerage in the market in the period forecasted

Restraint: High risk of bankruptcy of the brokerage firms

Higher risk of bankruptcy is one major factor that poses a significant threat in the Commodities Brokerage Market. Owing to its potential to disrupt financial stability and degrade the trust-ability of the market. Various factors may contribute to its potential risks, such as market volatility, economic instability, and lack of risk management by the brokerage firms among others.

Opportunity: Rising geopolitical tensions in the global market

Rising geopolitical tensions may boost the growth of the Commodities Contracts Brokerage Market. Geopolitical tensions include political uncertainties, rivalries between the countries, disputes, and pitfalls among intra-nations and international and others. Thus businesses seek the help of these brokerage firms to adapt to changing trade scenarios, diversify portfolios, and other major regulatory changes. This leads to fueling up the growth of the Commodities Contracts Brokerage Market in the long run.

Challenge: Price volatility and cost-trade off

The significant challenge in the market arises from the combination of price volatility and the cost-trade-off. Price volatility introduces elevated levels of risk and uncertainties, creating an environment where higher volatility results in escalated transaction costs. This, in turn, leads to increased execution costs, wider bid-ask spreads, and higher fees related to transactions. Consequently, investors may become less inclined to participate in the commodities market due to the heightened uncertainties and associated costs

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Some of the major players operating in the Commodity Contracts Brokerage market are:

• TD Ameritrade
• Interactive Brokers LLC
• Zerodha Broking Ltd
• The Vanguard Group
• Revolut Ltd
• Fidelity Investments Inc
• The Charles Schwab Corporation
• Degiro
• E-Trade Financial Corporation
• E-Trade Financial Corporation

Key Segments cover in the market:

By Deployment:

• Cloud
• On-Premise

By Enterprise Size:

• Large Enterprise
• Small Medium Enterprises (SMEs)

By End-User Industry:

• Banks
• Brokerage Firms
• Investment Management Firms
• Trading Exchange Firms
• Others

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About the report:

The global Commodity Contracts Brokerage market is analysed based on value (USD trillion). All the segments have been analysed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes porter’s five forces model, attractiveness analysis, raw material analysis, supply, demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients’ objectives of high-quality output within a short span of time. We provide both customized (clients’ specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients’ requirement whether they are looking to expand or planning to launch a new product in the global market.

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