Reports 2013 CTRM Global Market Size | Page 5

4 Market by Geography Geographically, North America continues to be the largest market region for CTRM software solutions, with a mature commodity trading market, particularly in power, natural gas, oil, coal, agricultural products and metals. While there continues to be a number of companies that maintain non-vendor systems, a large majority of the market for CTRM technology in North America is serviced by vendor-supplied and supported solutions. Europe has also a mature market in commodity trading, though less than North America in terms of natural gas and power. Western Europe, particularly the UK and Germany have established liquid markets for gas and power trading and are relatively penetrated by commercial CTRM solutions. Eastern Europe is a rapidly emerging energy trading market, though without full and consistent liberalization across the continent, the markets in individual countries are relatively isolated in terms of trading activities and business practices. Given the relatively small size of these markets, this localization has limited the adoption of vendor-supported CTRM applications as few vendors have been willing or able to make the necessary investments in developing capabilities to address the unique local requirements in each country; therefore, bespoke or internally developed CTRM is more common in the region. Elsewhere in Europe, established global trading centers in other commodities, particularly in the UK, Switzerland, and the Netherlands have a long history in trading agricultural products, softs, and oil; and penetration 2012 CTRM Market Share by Geography by commercially supported CTRM systems is relatively high. 4% 14% The Asia-Pacific region, driven by high demand for 45% commodities to meet rapidly expanding economies has become an increasingly active market for CTRM vendors, particularly those for managing oil and oil 34% products, agriculturals, softs and industrial metals and ores. Within the last several years, CTRM 3% vendors have found success selling products into North America South America Europe Middle East & Africa the Singapore and Hong Kong markets, with Asia/Pacific national oil companies and large metals and agricultural trading companies being particularly active buyers of vendor systems. However, given cultural and language differences outside of the major trading centers in the region, western-oriented CTRM vendors have had difficulties selling th