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Sharp economic volatility, the continued effects of high interest rates and mixed sentiment among investors created an uneven landscape for stock and commodity exchanges. While trading volumes soared in 2020 due to the pandemic and favorable financial conditions, such as zero percent interest rates from the Federal Reserve, the continued effects of high inflation in 2022 and 2023 resulted in a hawkish pivot on interest rates, which curtailed ROIs across major equity markets. Geopolitical volatility amid the Ukraine-Russia and Israel-Hamas wars further exacerbated trade volatility, as many investors pivoted away from traditional equity markets into derivative markets, such as options and futures to better hedge on their investment. Nonetheless, the continued digitalization of trading markets bolstered exchanges, as they were able to facilitate improved client service and stronger market insights for interested investors. Revenue grew an annualized 0.1% to an estimated $20.9 billion over the past five years, including an estimated 1.9% boost in 2025. A core development for exchanges has been the growth of derivative trades, which has facilitated a significant market niche for investors. Heightened options trading and growing attraction to agricultural commodities strengthened service diversification among exchanges. Major companies, such as CME Group Inc., introduced new tradeable food commodities for investors in 2024, further diversifying how clients engage in trades. These trends, coupled with strengthened corporate profit growth, bolstered exchanges’ profit. Despite current uncertainty with interest rates and the pervasive fear over a future recession, the industry is expected to do well during the outlook period. Strong economic conditions will reduce investor uncertainty and increase corporate profit, uplifting investment into the stock market and boosting revenue. Greater levels of research and development will expand the scope of stocks offered because new companies will spring up via IPOs, benefiting exchange demand. Nonetheless, continued threat from substitutes such as electronic communication networks (ECNs) will curtail larger growth, as better technology will enable investors to start trading independently, but effective use of electronic platforms by incumbent exchange giants such as NASDAQ Inc. can help stem this decline by offering faster processing via electronic trade floors and prioritizing client support. Overall, revenue is expected to grow an annualized 3.5% to an estimated $24.8 billion through the end of 2031.
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Graph and download economic data for Equity Market Volatility Tracker: Commodity Markets (EMVCOMMMKT) from Jan 1985 to May 2025 about volatility, uncertainty, equity, commodities, and USA.
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Eggs US fell to 3.21 USD/Dozen on July 30, 2025, down 3.24% from the previous day. Over the past month, Eggs US's price has risen 25.14%, and is up 17.05% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for Eggs US.
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This project contains code and data to replicate "Exploring 200 years of U.S. commodity market integration: A structural time series model approach." This paper uses a structural time series model to explore U.S. commodity market convergence, efficiency, and intertemporal smoothing from 1750-1949. I find near-continuous convergence that is largely concentrated in the frontier, broad antebellum efficiency gains, and intertemporal smoothing from the late 1800s onward among the most perishable goods. The results reveal new periods of integration across all three metrics and underscore the rapid rate of integration on the frontier.The raw data encompass more than 570,037 monthly price observations for 72 locations and 103 goods spanning from 1700 to 1950. The cleaned data consist of 385,224 monthly observations across 70 locations and 42 goods from 1750 to 1949.
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GSCI fell to 557 Index Points on July 31, 2025, down 0.22% from the previous day. Over the past month, GSCI's price has risen 2.35%, and is up 2.32% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. GSCI Commodity Index - values, historical data, forecasts and news - updated on July of 2025.
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Dataset Card for Sentiment Analysis of Commodity News (Gold)
This is a news dataset for the commodity market which has been manually annotated for 10,000+ news headlines across multiple dimensions into various classes. The dataset has been sampled from a period of 20+ years (2000-2021). The dataset was curated by Ankur Sinha and Tanmay Khandait and is detailed in their paper "Impact of News on the Commodity Market: Dataset and Results." It is currently published by the authors on… See the full description on the dataset page: https://huggingface.co/datasets/SaguaroCapital/sentiment-analysis-in-commodity-market-gold.
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Market Size statistics on the Stock & Commodity Exchanges industry in the US
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North America Commodity Chemicals Market valuation is estimated to reach USD 60.49 Bn in 2025 and is anticipated to grow to USD 88.05 Bn by 2032
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BASE YEAR | 2024 |
HISTORICAL DATA | 2019 - 2024 |
REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
MARKET SIZE 2023 | 525.05(USD Billion) |
MARKET SIZE 2024 | 542.12(USD Billion) |
MARKET SIZE 2032 | 700.4(USD Billion) |
SEGMENTS COVERED | Commodity Type ,Service Type ,End-User Industry ,Business Model ,Regional |
COUNTRIES COVERED | North America, Europe, APAC, South America, MEA |
KEY MARKET DYNAMICS | Rising demand for commodities Technological advancements Increasing regulatory compliance Heightened competition Shifting consumer preferences |
MARKET FORECAST UNITS | USD Billion |
KEY COMPANIES PROFILED | Glencore ,Marubeni ,Koch Supply & Trading ,Wilmar ,Vitol ,Bunge ,Mercuria ,Mitsubishi ,Cargill ,Sumitomo ,Itochu ,Trafigura ,ADM ,Gunvor ,Louis Dreyfus Company |
MARKET FORECAST PERIOD | 2024 - 2032 |
KEY MARKET OPPORTUNITIES | 1 Digital transformation of trading platforms 2 Growth of sustainable and ethical sourcing 3 Expansion into emerging markets 4 Integration with blockchain technology 5 Data analytics and AIdriven insights |
COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.25% (2024 - 2032) |
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The global commodity index funds market size was valued at approximately $200 billion in 2023 and is projected to reach nearly $400 billion by 2032, growing at a robust CAGR of 7.5% during the forecast period. The significant growth in this market can be attributed to the increasing demand for diversification in investment portfolios and the inherent benefits of hedging against inflation that commodity investments provide. Furthermore, the volatility in global stock markets and geopolitical uncertainties have led investors to seek safer, more stable investment avenues, thus driving the growth of commodity index funds.
One of the primary growth factors propelling the commodity index funds market is the rising awareness among investors about the advantages of commodity investments as a hedge against inflation. Commodities, unlike stocks and bonds, often move inversely to the stock market, providing a cushion during market downturns. This characteristic makes commodity index funds an attractive option for risk-averse investors and those looking to balance their portfolios. Additionally, the globalization of trade and the increasing demand for raw materials in emerging markets have further spurred the demand for commodity investments.
Technological advancements in trading platforms have also significantly contributed to the growth of this market. The advent of sophisticated online platforms has made it easier for retail investors to access and invest in commodity index funds. These platforms offer a range of tools and resources that help investors make informed decisions, thereby democratizing access to commodity investments. Moreover, the rise of robo-advisors and algorithm-based trading strategies has further simplified the investment process, attracting a new generation of tech-savvy investors.
The regulatory landscape has also played a crucial role in shaping the commodity index funds market. Governments and financial regulatory bodies across the globe have been working to create a transparent and secure trading environment. Regulatory reforms aimed at reducing market manipulation and increasing transparency have instilled confidence among investors, thereby boosting the market. Additionally, tax incentives and favorable policies for commodity investments in various countries have also contributed to market growth.
In terms of regional outlook, North America holds a significant share of the global commodity index funds market, followed by Europe and Asia Pacific. The presence of well-established financial markets and a high level of investor awareness in North America are key factors driving the market in this region. Europe, with its strong regulatory framework and increasing adoption of alternative investment strategies, is also witnessing substantial growth. Meanwhile, the Asia Pacific region is emerging as a lucrative market, driven by the rapid economic growth in countries like China and India, and the increasing interest in commodity investments among institutional and retail investors.
When analyzing the market by fund type, Broad Commodity Index Funds dominate the landscape. These funds invest in a diversified portfolio of commodities, making them a popular choice for investors seeking broad exposure to the commodity markets. The broad commodity index funds are designed to track the performance of a basket of commodities, ranging from energy products to metals and agricultural goods. This diversification helps mitigate risks associated with the volatility of individual commodities, thereby providing a more stable investment option for risk-averse investors.
Single Commodity Index Funds, on the other hand, focus on specific commodities such as gold, oil, or agricultural products. These funds appeal to investors who have a strong conviction about the performance of a particular commodity. For instance, during periods of economic uncertainty, gold-focused funds often see a surge in demand as investors flock to the safe-haven asset. Similarly, energy-focused funds attract investors when there are disruptions in oil supply or significant geopolitical events affecting oil prices. While these funds offer the potential for high returns, they also come with higher risks due to their lack of diversification.
Sector Commodity Index Funds are another important segment within the commodity index funds market. These funds concentrate on commodities within a specific sector, such as energy, agriculture, or metals, allowing investors to target particular segments of the commo
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In 2023, the global commodity services market size was valued at approximately USD 12 billion and is projected to reach USD 18 billion by 2032, growing at a CAGR of 4.5% during the forecast period. The market's growth can be attributed to the increasing globalization of trade, advancements in technology, and heightened demand for risk management and advisory services in volatile markets. These factors are driving the market toward a sustainable growth trajectory.
The primary growth factor for the commodity services market is the growing need for risk management in the face of fluctuating commodity prices. As global markets become more interconnected, the volatility in commodity prices has escalated, necessitating advanced risk management tools and services. Companies across various sectors, including agriculture, energy, and metals, are increasingly leveraging these services to mitigate risks and ensure market stability. These risk management services cover a broad spectrum, from hedging strategies using futures and options to more complex financial instruments.
Another key driver is the technological advancements in commodity trading and brokerage services. The advent of sophisticated trading platforms and algorithms has revolutionized the commodity services market. These technologies enable faster transaction execution, enhanced data analytics, and improved market intelligence, thereby attracting more participants into the market. Furthermore, blockchain technology is being integrated for increased transparency and reduced fraud, which further boosts market confidence and participation.
The increasing demand for specialized research and advisory services also fuels the market's growth. With the complexity of global markets, businesses seek in-depth market analysis, trend forecasting, and strategic advice to make informed decisions. Research and advisory firms provide valuable insights into market dynamics, regulatory changes, and economic indicators, helping companies navigate the intricate landscape of commodity trading. This service segment is seeing robust growth as companies become more dependent on expert guidance to optimize their trading strategies.
Regionally, North America holds a significant share of the commodity services market, driven by its well-established financial markets and advanced technological infrastructure. The region's dominance is expected to continue, supported by the presence of major commodity exchanges and brokerage firms. Meanwhile, the Asia Pacific region is experiencing the fastest growth, primarily due to expanding industrial activities and increasing participation in global trade. The burgeoning economies of China and India, in particular, are key contributors to this regional growth, with their rising demand for various commodities.
The trading and brokerage segment is a cornerstone of the commodity services market, providing essential platforms and services for buying and selling various commodities. This segment has evolved significantly with the advent of electronic trading platforms that offer real-time market data, automated trading systems, and enhanced connectivity across global markets. These platforms have democratized access to commodity trading, allowing even small and medium-sized enterprises to participate actively.
In recent years, the role of brokerage firms has expanded beyond mere transaction facilitation to providing comprehensive market analysis, trading recommendations, and personalized investment strategies. Brokerage firms are now leveraging advanced analytics and big data to offer tailored solutions to their clients, enhancing their decision-making capabilities. This trend is particularly prominent in the energy and metals sectors, where market dynamics are highly complex and require specialized expertise.
Moreover, the integration of blockchain technology is poised to transform the trading and brokerage landscape. Blockchain offers unparalleled transparency and security, reducing the risk of fraud and ensuring the integrity of transactions. Several commodity exchanges and brokerage firms are already piloting blockchain-based platforms, which could set a new standard for the industry. This technological shift is expected to attract more institutional investors, further boosting market liquidity and stability.
The trading and brokerage segment also faces challenges, particularly in terms of regulatory compliance and cybersecurity. With increasi
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Corn rose to 392.28 USd/BU on July 31, 2025, up 0.14% from the previous day. Over the past month, Corn's price has fallen 6.60%, and is down 1.56% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Corn - values, historical data, forecasts and news - updated on July of 2025.
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The global commodities trading services market, valued at $4226.9 million in 2025, is projected to experience robust growth, driven by increasing global demand for raw materials across various sectors. The 5.5% CAGR from 2025 to 2033 indicates a significant expansion, fueled by several key factors. Growth in emerging economies, particularly in Asia-Pacific, is a primary driver, coupled with rising industrialization and infrastructure development. The energy sector, encompassing oil, gas, and related products, is expected to dominate the market, followed by metals trading. However, increasing regulatory scrutiny and price volatility in commodity markets represent key challenges. Furthermore, the agricultural commodities segment is poised for considerable growth due to population increases and shifting dietary patterns. The market is segmented by type (metals, energy, agricultural, and others) and application (large enterprises and SMEs), with large enterprises currently dominating. Competitive dynamics are shaped by the presence of major players like Vitol, Glencore, and Trafigura, all vying for market share through strategic partnerships, technological advancements, and geographical expansion. The increasing adoption of digital technologies for efficient trading and risk management is further shaping the market landscape. The forecast period (2025-2033) reveals substantial growth opportunities across all segments. The North American and European markets are established strongholds, but significant expansion is anticipated in Asia-Pacific, driven by China and India's burgeoning economies. The market's future hinges on several factors, including geopolitical stability, technological innovation in trading platforms, and the implementation of sustainable practices across the commodity supply chain. Effective risk management strategies and adaptation to evolving regulatory frameworks will be critical for success in this dynamic market. Companies are focusing on enhancing their logistical capabilities and strengthening their relationships with producers and consumers to secure a competitive edge. The focus on sustainability and responsible sourcing will play an increasingly important role in shaping the future of the commodities trading services market.
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North America Commodity Trading Transaction and Risk Management - CTRM Software market size will be USD 745.99 Million by 2023
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BASE YEAR | 2024 |
HISTORICAL DATA | 2019 - 2024 |
REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
MARKET SIZE 2023 | 13.04(USD Billion) |
MARKET SIZE 2024 | 13.46(USD Billion) |
MARKET SIZE 2032 | 17.3(USD Billion) |
SEGMENTS COVERED | Deployment Type ,Functionality ,Commodity Type ,Organization Size ,Industry Vertical ,Regional |
COUNTRIES COVERED | North America, Europe, APAC, South America, MEA |
KEY MARKET DYNAMICS | Rising demand for efficient trading platforms Increasing adoption of digital technologies Growing emphasis on supply chain transparency Emergence of new market players amp partnerships Regulatory frameworks amp compliance requirements |
MARKET FORECAST UNITS | USD Billion |
KEY COMPANIES PROFILED | Gazprom Marketing & Trading ,Shell ,Koch Industries ,OTPP ,Gunvor ,Mercuria ,Trafigura ,BP ,Uniper ,Vitol ,Cargill ,Glencore ,Aramco Trading ,TotalEnergies ,Chevron |
MARKET FORECAST PERIOD | 2024 - 2032 |
KEY MARKET OPPORTUNITIES | 1 Advanced analytics and AI 2 Cloudbased platforms 3 Integration with supply chain management systems 4 Blockchain technology 5 Increased automation |
COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.19% (2024 - 2032) |
In 2024, the price of natural gas in Europe reached 11 constant U.S. dollars per million British thermal units, compared with 2.2 U.S. dollars in the U.S. This was a notable decrease compared to the previous year, which had seen a steep increase in prices due to an energy supply shortage exacerbated by the Russia-Ukraine war. Since 1980, natural gas prices have typically been higher in Europe than in the United States and are expected to remain so for the coming two years. This is due to the U.S. being a significantly larger natural gas producer than Europe. What is natural gas and why is it gaining ground in the energy market? Natural gas is commonly burned in power plants with combustion turbines that generate electricity or used as a heating fuel. Given the fact that the world’s energy demand continues to grow, natural gas was seen by some industry leaders as an acceptable "bridge-fuel" to overcome the use of more emission-intensive energy sources such as coal. Subsequently, natural gas has become the main fuel for electricity generation in the U.S., while the global gas power generation share has reached over 22 percent. How domestic production shapes U.S. natural gas prices The combination of hydraulic fracturing (“fracking”) and horizontal drilling can be regarded as one of the oil and gas industry’s biggest breakthroughs in decades, with the U.S. being the largest beneficiary. This technology has helped the industry release unprecedented quantities of gas from deposits, mainly shale and tar sands that were previously thought either inaccessible or uneconomic. It is forecast that U.S. shale gas production could reach 36 trillion cubic feet in 2050, up from 1.77 trillion cubic feet in 2000.
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The global commodity trading services market is experiencing robust growth, driven by increasing globalization, fluctuating commodity prices, and the need for efficient supply chain management. The market size in 2025 is estimated at $2 trillion, exhibiting a Compound Annual Growth Rate (CAGR) of 6% between 2025 and 2033. This growth is fueled by several key factors. Firstly, the rising demand for raw materials across various sectors, including metals, energy, and agriculture, is creating lucrative opportunities for commodity trading firms. Secondly, technological advancements in areas like data analytics and blockchain technology are improving transparency, efficiency, and risk management within commodity trading, further stimulating market expansion. Finally, the increasing complexity of global supply chains necessitates the expertise of specialized commodity traders to navigate market volatility and ensure secure and timely delivery of goods. The market is segmented by commodity type (metals, energy, agricultural, and others) and by the size of the businesses served (large enterprises and SMEs). While large enterprises dominate the market currently, the SME segment shows strong potential for future growth as businesses increasingly rely on external expertise for commodity sourcing. The geographical distribution of the commodity trading services market is diverse, with North America, Europe, and Asia Pacific representing the major regions. However, emerging markets in Asia and Africa are showing significant growth potential due to rapid industrialization and rising consumer demand. Competitive pressures within the industry are high, with numerous large multinational corporations vying for market share. These companies, including Vitol, Glencore, Trafigura, Mercuria, and Cargill, possess extensive global networks, strong financial capabilities, and deep expertise in risk management, allowing them to dominate the market. Nevertheless, smaller, specialized trading firms are also finding success by focusing on niche markets or employing innovative trading strategies. The overall outlook for the commodity trading services market remains optimistic, with continued growth expected over the coming years, albeit with some potential challenges related to geopolitical instability and regulatory changes.
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The global Commodity Trading and Risk Management (CTRM) software market is experiencing robust growth, driven by increasing complexities in commodity trading, stringent regulatory compliance needs, and the growing adoption of cloud-based solutions. The market, estimated at $2 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 8% from 2025 to 2033, reaching approximately $3.5 billion by 2033. This growth is fueled by several key factors. Firstly, the escalating volatility in commodity prices necessitates sophisticated software solutions for effective risk mitigation and price optimization. Secondly, the rise of digitalization and the increasing preference for cloud-based CTRM systems offer enhanced scalability, accessibility, and cost-effectiveness compared to traditional on-premise solutions. Thirdly, regulatory pressures, such as those related to transparency and reporting, are compelling trading firms to adopt advanced CTRM systems to ensure compliance. The market is segmented by application (large enterprises and SMEs) and deployment type (cloud-based and web-based), with cloud-based solutions gaining significant traction due to their inherent advantages. The competitive landscape is populated by a mix of established players and emerging technology providers, each offering specialized solutions catering to the diverse needs of the commodity trading industry. Geographically, North America currently holds a significant market share, but the Asia-Pacific region is expected to exhibit substantial growth in the coming years due to the expanding commodity markets and increasing technological adoption in developing economies. The competitive landscape is intensely dynamic, with established players like Murex and Triple Point Technology competing with agile newcomers offering innovative solutions. Successful vendors are focusing on integrating advanced analytics, AI-powered risk modeling, and blockchain technology to enhance the efficiency and accuracy of their CTRM offerings. The adoption of these advanced technologies will play a crucial role in shaping the future of the CTRM market, fostering innovation, and enhancing the overall capabilities of the software solutions available to commodity traders globally. Furthermore, the integration of CTRM systems with other enterprise resource planning (ERP) and supply chain management (SCM) systems is driving further growth, streamlining operations, and improving data visibility across the entire value chain. The market's future trajectory is promising, propelled by ongoing technological advancements and the ever-increasing need for effective risk management within the dynamic commodity trading landscape.
As per our latest research, the global Digital Commodity Exchange market size reached USD 6.7 billion in 2024, and is expected to grow at a robust CAGR of 13.2% from 2025 to 2033. By the end of the forecast period, the market is anticipated to achieve a value of USD 20.1 billion by 2033. This remarkable growth trajectory is driven by increasing digitization of commodity trading platforms, the rising adoption of blockchain for secure and transparent transactions, and the expanding participation of retail and institutional investors in digital commodity trading.
The primary growth factor for the Digital Commodity Exchange market is the ongoing digital transformation across global financial and commodity markets. Traditional commodity exchanges have faced limitations in terms of accessibility, transparency, and efficiency, prompting a shift toward digital platforms that leverage advanced technologies such as blockchain, artificial intelligence, and cloud computing. These innovations have enabled real-time trading, improved price discovery, and enhanced risk management, making digital commodity exchanges more attractive to a broader range of participants. Furthermore, the integration of digital wallets and automated settlement systems has significantly reduced transaction costs and processing times, further fueling market expansion.
Another significant driver is the diversification of commodity types traded on digital exchanges. While energy and metals have traditionally dominated commodity markets, digital platforms have enabled seamless trading in agricultural commodities, carbon credits, and even emerging asset classes such as rare earth elements and digital assets. This diversification caters to the evolving needs of institutional investors seeking portfolio hedging and risk mitigation, as well as retail traders looking for new investment opportunities. The flexibility and scalability offered by digital commodity exchanges have also encouraged governments and regulatory bodies to support the development of robust digital trading infrastructures, thereby strengthening market confidence and participation.
Moreover, the increasing globalization of trade and the need for cross-border commodity transactions have amplified the demand for digital commodity exchanges. These platforms facilitate seamless trading across geographies, overcoming the barriers posed by traditional exchange models. The adoption of cloud-based deployment models has further enhanced the scalability and accessibility of digital exchanges, enabling market participants from emerging economies to participate in global commodity trading. The convergence of regulatory support, technological advancements, and growing investor awareness is expected to sustain the strong growth momentum of the Digital Commodity Exchange market throughout the forecast period.
Regionally, North America and Asia Pacific are leading the adoption of digital commodity exchanges, supported by mature financial infrastructures, high digital literacy, and proactive regulatory frameworks. Europe is also witnessing rapid growth, driven by increasing demand for sustainable and transparent commodity trading practices. Meanwhile, Latin America and the Middle East & Africa are emerging as promising markets, fueled by investments in digital infrastructure and the growing importance of commodities in their economies. As digital commodity exchanges continue to evolve, regional dynamics will play a crucial role in shaping the competitive landscape and future growth prospects of the market.
The component segment of the Digital Commodity Exchange market is bifurcated into platform and services. The platform segment encompasses the core trading infrastructure, including order matching engines, user interfaces, and blockchain-based settlement layers. These platforms form the backbone of digital commodity exchanges, enabling seamless execution of trades, real-time price discovery, and secure custody of digital
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Stock and commodity exchanges can benefit from various sources of revenue, ranging from fees charged through the purchasing and selling of stocks and commodities to the listing of companies on exchanges with IPOs. Yet, this hasn't meant exchanges have been free of challenges, with many companies looking to more attractive overseas markets in countries like the US that embrace stronger growth. The most notable culprits have been ARM and CRH, refusing to put up with the increasingly cheaper valuations offered by UK stock exchanges. Stock and commodity exchange revenue is expected to boom at a compound annual rate of 11.5% over the five years through 2024-25 to £15.4 billion. Boosted by the London Stock Exchange Group's Refinitiv purchase in 2021-22, the growth numbers seem inflated. The industry saw ample consolidations, aided by MiFID II's initiation in 2018. However, M&As have now decreased because of high borrowing costs. New reporting demands have bumped up regulatory costs, resulting in thinner profits. Banks, aligning with Basel IV, are pulling back on investments. Post-COVID market turbulence fuelled trades, but it's slowing down with economic stabilisation. The inflation slowdown pushes investors towards higher-value securities, boosting trade value despite lower volumes. The weak pound has been beneficial for revenue, especially for the LSEG, bolstered by dollar-earning companies in the FTSE 100. Stock and commodity exchange industry revenue is expected to show a moderate increase of 1.3% in 2024-25. Revenue is forecast to climb at a compound annual rate of 4.1% over the five years through 2029-30 to £18.8 billion. The cautious descent of interest rates from the Bank of England will slow down volatility and ensure greater business confidence in the UK. This will bring back up consolidation activity to support revenue growth, reviving the digital information and exchange markets. The most pressing concern for the industry will be potential limitations on access to the EEA for the clearing segment of the industry, which could shatter short-term growth and keep the tap running for companies exiting UK exchanges.
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Sharp economic volatility, the continued effects of high interest rates and mixed sentiment among investors created an uneven landscape for stock and commodity exchanges. While trading volumes soared in 2020 due to the pandemic and favorable financial conditions, such as zero percent interest rates from the Federal Reserve, the continued effects of high inflation in 2022 and 2023 resulted in a hawkish pivot on interest rates, which curtailed ROIs across major equity markets. Geopolitical volatility amid the Ukraine-Russia and Israel-Hamas wars further exacerbated trade volatility, as many investors pivoted away from traditional equity markets into derivative markets, such as options and futures to better hedge on their investment. Nonetheless, the continued digitalization of trading markets bolstered exchanges, as they were able to facilitate improved client service and stronger market insights for interested investors. Revenue grew an annualized 0.1% to an estimated $20.9 billion over the past five years, including an estimated 1.9% boost in 2025. A core development for exchanges has been the growth of derivative trades, which has facilitated a significant market niche for investors. Heightened options trading and growing attraction to agricultural commodities strengthened service diversification among exchanges. Major companies, such as CME Group Inc., introduced new tradeable food commodities for investors in 2024, further diversifying how clients engage in trades. These trends, coupled with strengthened corporate profit growth, bolstered exchanges’ profit. Despite current uncertainty with interest rates and the pervasive fear over a future recession, the industry is expected to do well during the outlook period. Strong economic conditions will reduce investor uncertainty and increase corporate profit, uplifting investment into the stock market and boosting revenue. Greater levels of research and development will expand the scope of stocks offered because new companies will spring up via IPOs, benefiting exchange demand. Nonetheless, continued threat from substitutes such as electronic communication networks (ECNs) will curtail larger growth, as better technology will enable investors to start trading independently, but effective use of electronic platforms by incumbent exchange giants such as NASDAQ Inc. can help stem this decline by offering faster processing via electronic trade floors and prioritizing client support. Overall, revenue is expected to grow an annualized 3.5% to an estimated $24.8 billion through the end of 2031.