Reports 2013 CTRM Global Market Size | Page 11

10

Market by Commodity

$Millions

Both natural gas and power-centric CTRM markets are primarily focused in North America and Europe, where active
trading of the commodities is fairly widespread. Within the last couple of years, there have been sales of power and
gas capable systems in the Asia-Pacific region, primarily to utilities and producers; however these sales have been
the exception for
these
types
of
Total CTRM Market by Commodity
systems. Given that
Inc. Vendor Revs, 3rd Party Implementation and Unaddressed
the North American
Market
natural gas prices are
$500
anticipated to remain
$450
low
for
the
$400
$350
foreseeable future and
$300
that
power
$250
(increasingly fueled by
$200
natural gas) prices are
$150
also
expected
to
$100
$50
remain
low,
the
$outlook for growth in
Natural
Power
Oil and
NGLs
Coal
Precious
Other
Ags/Softs
Other
Gas
Products
Metals Metals and
(Freight,
CTRM for these two
Ores
Emissions,
commodities is for
Etc)
growth to be less than
2012
2013
2014
2015
2016
2017
2018
3% over the next 5
years.
Oil and oil products are widely traded around the globe and the overall demand and supply balance continues to be
relatively tight, yielding prices consistently above $100/bbl amid moderate volatility. These conditions, combined
with increasing demand for products in Asia-Pacific continue to support active trading in the commodity and support
a continuing market outlook for growth of slightly more than 5% for CTRM technology serving that commodity
segment.
CTRM for NGL trading, which is almost entirely centric to the North American market, has seen an strong increase
in the last three to four years as massive increases in natural gas product has led to a boom in infrastructure
development and strong growth in the midstream of the market. With the development of new gas processing plants
and strong growth by producers holding liquids rich gas assets, the demand for NGL capable systems has increased
significantly during the last couple of year. However, as infrastructure been developed in the new producing regions,
and natural gas prices are anticipated to remain low, the outlook for continued growth in NGLs is limited and we
believe beyond 2013, the market will see less than a 5% increase year over year.
Coal producers and traders are feeling the effects of a declining market for coal for power generation, particularly
in the US and Europe where environmental regulations are accelerating the closing of coal fired facilities and are
effectively killing new construction. Though large coal fired projects continue to be developed in China and other
areas of Asia Pacific, the global demand for steam coal is declining. Given these conditions we anticipate that there
will be no increase in demand for coal centric CTRM products for some time.
CTRM for precious metals is a highly variable market from year to year, driven primarily by both the price and
volatility of the gold markets. With higher prices and increasing volatility of gold, we would expect to see strong

© 2013 Commodity Technology Advisory LLC

Houston TX and Prague CZ