The Electricity Trading Market is being driven by Rise in vendor collaborations
The Electricity Trading Market is expected to grow at a CAGR of 6.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 123.5 billion. In the dynamic electricity trading market, power exchanges serve as crucial intermediaries, enabling traders, buyers, and sellers to engage in various transactions. These platforms facilitate spot contracts for intraday, next-day, and weekly electricity trading, mirroring the functionality of commodity exchanges. Notably, India hosts two active power exchanges, IEX and Power Exchange of India (PXIL). The global electricity sector is witnessing significant investment from major players, such as Hitachi Ltd., who recently restructured their domestic power grids business into Hitachi Energy to promote a carbon-neutral society and bolster the resilience of Japanese electricity networks. These strategic moves underscore the growing importance of power exchanges in facilitating a liberalized and efficient electricity market.
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The market is segmented based on
According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows:
However, the market also witnesses some limitations, which are as follows:
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Market Scope |
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Report Coverage |
Details |
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Page number |
212 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.5% |
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Market growth 2025-2029 |
USD 123.5 billion |
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Market structure |
fragmentation |
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YoY growth 2024-2025(%) |
6.3 |
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Key countries |
US, China, Germany, UK, France, Japan, India, Italy, Spain, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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The electricity trading market is a real-time system where power stations sell their generation data to consumers through wholesale energy markets. This market design resembles traditional financial markets dealing with equities, bonds, and commodities. The system operator manages the supply and demand balance, while consumers purchase electricity through contracts or power purchase agreements. Ancillary services like frequency control are also traded. News reports and power station performance influence market prices. Short-term trading and power distribution are integral parts of this dynamic energy industry, shaped by European initiatives like the Green Paper and Lisbon Strategy.
In the dynamic landscape of wholesale energy markets, the parent market encompassing global renewable electricity is experiencing significant growth. This sector caters to businesses involved in the generation and distribution of electricity derived from renewable sources, including independent power producers, gas and power marketing and trading specialists, integrated energy merchants, and renewable electricity providers. Furthermore, the market expands to include manufacturers of raw materials and equipment used in the solar power industry. The expansion of this market is driven by supportive policies and targets for the deployment of renewable power, which have fueled a substantial increase in the adoption of renewable energy sources over the past decade. Regulators and utilities companies play a crucial role in this market, ensuring financial strength and adherence to market design principles. Traders, both professional and institutional, actively participate in real-time day-ahead markets to optimize energy supply and demand.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
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