Energy Trading and Risk Management (ETRM) Market

Energy Trading and Risk Management (ETRM) Market Sizes by Type (Software and Services), By Application (Power, Natural Gas, Oil and Products and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14346
  • Published Date: May, 2024
  • Pages: 238
  • Category: Energy & Power
  • Format: PDF
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The global energy trading and risk management (ETRM) market was valued at USD 1.47 Billion in 2023 and is anticipated to grow at a CAGR of 4.4% from 2024 to 2033. ETRM, or Energy Trading and Risk Management software, facilitates trading energy commodities such as crude oil, refined products like petroleum gasoline and diesel oils, natural gases including liquid by-products (NGLs), and electric power generation sources by supporting business processes with comprehensive solutions. Energy industries utilize ETRM systems to achieve diverse objectives, including adherence to regulations, reduction of risk exposure and facilitation of trade. The expansion in demand for ETRM solutions is propelled by enterprise resource planning (ERP) services tailored towards process-based companies or robust trading and collateral management platforms designed for large sell-side institutions.

Market Introduction:

ETRM systems encompass the integration of trade floor, operations, credit, contract, and accounting functions to enable commercial decision-making and market execution. This process facilitates price transparency, regulated access control, and market monitoring for risk management purposes. ETRM systems enable commercial decision-making and market execution through an integrated platform that facilitates data exchanges between departments such as trade floor, credit, operations, contract compliance and accounting. The process includes event identification/capture, scheduling/nomination/transportation management and settlement execution, along with comprehensive risk management strategies/policies to maintain price transparency & regulatory compliance while controlling access levels for better monitoring by companies that deal in financial trading or physical energy from upstream to downstream segments of the industry. The core functionality offered by Energy Trading and Risk Management software caters to a range of users, including banks, financial trading firms, oil/gas producers/distributors/manufacturers across all stages - upstream/midstream/downstream - focusing on trade capture; valuations analysis for trades/instruments involved; counterparty assessment (creditworthiness); limit control/compliance adherence during deals/exchanges involving derivatives or other instruments like options/futures and others.  An energy trading and risk management system is a software application commonly utilized by oil traders, distributors, suppliers, and wholesalers to automate business processes associated with the supply of crude oil, refined products, alternative fuels, and renewable commodities. This tool also facilitates trading financial derivatives while ensuring seamless movement and delivery of energy goods and proper handling of related risk-management activities.

Energy Trading and Risk Management (ETRM) Market Size

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Recent Development
  • In August 2021: Leading cloud platform for digital innovation, Eka Software tools, announced a partnership with leading global energy data analytics and SaaS technology company Enverus to provide energy traders with new tools for improved risk management and decision-making. The company will offer a pre-built link on its Energy Trading and Risk Management Platform to facilitate easy access to Enverus' MarketView and CurveBuilder data, including forwarding curves, settlement prices, and foreign exchange. Integrating diverse data, tools, and analytics into a single repository using Enverus's data API and a cloud data warehouse can promote project implementations and outcomes.

Market Dynamics:


Increasing Focus on Environmental Sustainability Initiatives – The shift towards environmental sustainability and decarbonization initiatives is causing significant changes in the energy industry, leading to a higher demand for ETRM solutions. With increasing concerns about climate change, air pollution, and resource scarcity comes an urgent need to transition from non-renewable energy sources to cleaner alternatives that reduce carbon emissions throughout the entire value chain. As renewable markets like wind, solar, hydroelectricity and bioenergy continue experiencing rapid growth through investments made into them, businesses require tailored ETRM systems facilitating trading of risk management associated with these assets along with certificates linked therein as well. This empowers firms to navigate complexities within such industries by optimizing integration processes between portfolios while meeting required mandates or standards set forth by corresponding laws governing organizations, ultimately aligning green and sustainability priorities. This is the primary factor for the market growth and development.


Complexity Associated: One of the basic restraining factors for the global ETRM market is its primary complexity and volatility. Energy products, oil, and natural gas products in the way that electricity, oil, unrefined petroleum, and cultured products are liable to be subjected to active supply-demand dynamics, geopolitical tensions, supervisory changes, weather patterns, and macro-economic factors, contributing to advertising doubt and price evaporation. The unpredictable nature of markets makes it challenging for manufacturing companies, distributors, and merchants to forecast prices correctly, manage risks, and increase business blueprints, leading to potential fiscal deficits and functional disruptions. This factor is restraining the market growth and development.


Technological Advancements- The ongoing technological advancements and innovations significantly stimulate the growth of the global ETRM market. Digital technologies like cloud computing, artificial intelligence, big data analytics, machine learning, and blockchain technology have revolutionized the trade within energy companies while managing risk and optimizing their operations. These advanced technologies facilitate real-time data analysis, which assists traders in making informed decisions that help identify profitable opportunities and mitigate risks better. Mobile devices becoming increasingly common alongside internet connectivity has facilitated remote access to trading platforms, enabling decision support tools and enhancing efficiency & flexibility for energy trading operations. This factor is anticipated to provide lucrative growth opportunities in the upcoming years.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region emerged as the most prominent global energy trading and risk management (ETRM) market, with a 40.0% market revenue share in 2023. Technological innovation and digital transformation fuel regional market growth and development. Energy companies utilize advanced analytics, artificial intelligence, blockchain and other technologies to optimize trading strategies while automating processes and improving decision-making capabilities. By adopting advanced solutions that provide real-time data analytics, the trading companies within the region obtain effective results while mitigating the risks. In addition, North America's status as a prominent global finance centre and technology hub plays a significant role in advancing and widespread implementation of innovative ETRM solutions. The region is a hub of software vendors and service providers that cater to the diverse needs of energy companies, financial institutions, and trading companies across the region. The regional market players also engage in various market strategies such as product innovation, product differentiation, mergers, acquisitions, partnerships, and strategic alliances to maintain their competitive edge.

  • In September 2023: SAP S/4HANA for Energy, the company's most recent ETRM solution, was officially launched. It is integrated with expanded cloud capabilities and AI-powered analytics for better risk management. 

North America Region Energy Trading and Risk Management (ETRM) Market Share in 2023 - 40.0%

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Type Segment Analysis

The type segment includes software and services. The software segment dominated, with a market share of around 60% in 2023. The global ETRM industry leans heavily on software solutions to carry out essential operations in energy trading, risk management, and daily functions within various commodity markets. An extensive offering of modules and applications falls under ETRM software capabilities, which support different areas such as trade capturing or valuation analytics. These diverse tools come with options that offer accessibility through cloud-based technology or on-premises deployment, providing scalability and flexibility and allowing comprehensive access regardless of a company's size or complexity level.

Application Segment Analysis

The application segment includes power, natural gas, oil and products and others. The power segment dominated, with a market share of around 43% in 2023 The power sector accounts for a significant share of the ETRM market due to electricity's increasing prominence as a primary energy source across industries, businesses, and households globally. This domain operates in an environment characterized by fluctuating supply-demand dynamics influenced by grid congestion, renewable energy penetration rate changes based on weather conditions and regulatory alterations. Power trading solutions offered under ETRM encompass various functionalities such as bidirectional trading options, optimizing generation capacity allocation, forecasting, demand planning, and managing grids, enabling participating players to optimize their investment portfolios, safeguard against fleeting price trends, and risk management.

Some of the Key Market Players:
  • Brady Technologies
  • Enuit LLC
  • SAP
  • EKA Software Solutions
  • Publicis Sapient
  • Fendahl International
  • Fidelity National Information Services Inc.
  • CommodityPro
  • nGenue LLC
  • Open Access Technology International Inc.
  • ION Group
  • Enverus Inc.

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 1.47 Billion
Market size value in 2033 USD 2.26 Billion
CAGR (2024 to 2033) 4.4%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Type, Application

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global energy trading and risk management (ETRM) market was valued at USD 1.47 billion in 2023 to USD 2.26 billion by 2033.

The global energy trading and risk management (ETRM) market is growing at a CAGR of 4.4% during the forecast period 2024-2033.

North America region became the largest market for energy trading and risk management (ETRM).

The growing globalization and liberalization of energy sector is driving the market's growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global energy trading and risk management (ETRM) market based on below-mentioned segments:

Global Energy Trading and Risk Management (ETRM) Market by Application:

  • Power
  • Natural Gas
  • Oil and Products
  • Others

Global Energy Trading and Risk Management (ETRM) Market by Type:

  • Software
  • Services

Global Energy Trading and Risk Management (ETRM) Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


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Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

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The supply side for a domain specific market is analysed by:

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  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

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  • Examining the industry indicators prevailing in the market. 

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