Reports 2013 CTRM Global Market Size | Page 7
6
5-Year Market Outlook
In developing our outlook for the global CTRM markets, we reviewed the current and perspective market by
commodities, geographies and industrial market segments; developing our topside outlook of the market based
upon this more granular review. Overall, we anticipate the total global CTRM market will grow by 4-6%, with our
estimates reflecting a midrange
value of 5%. Within the revenue
components that comprise this
market, we anticipate that
traditional installed software
license sales will grow at modest
rate of 3-4%, while increasing
adoption of SaaS or “Cloud” based
solutions will see growth rates
from 13-15%. Despite this high
growth rate, traditionally installed
solutions will continue to
dominate the market for the
foreseeable future.
Regional Review
$Millions
The “Energy Renaissance” in North America is having a significant impact on prices and volatilities for both natural
gas and power, reducing trading activities across virtually all industry segments and limiting the entrance of new
market participants.
Given that the
Total CTRM Market by Commodity by Geography - 2012
future outlook for
$200
natural gas prices is
$180
flat
to
today’s
$160
$140
market, it is very
$120
unlikely that this
$100
market will see
$80
much in the way of
$60
$40
increased demand
$20
for CTRM solutions
$for natural gas or
North America
South America
Europe
Middle East & Africa
Asia/Pacific
power during the
Natural Gas
Power
Oil and Products
study period. Most
NGLs
Coal
Precious Metals
sales of new licenses
Other Metals and Ores
Ags/Softs
Other (Freight, Emissions, Etc)
for the energy
centric market (including oil, products and coal) in North America will be for replacement of existing vendor
supported systems that have been in production for five or more years, and for expansion licenses due to organic
business growth. Non-energy CTRM license sales do show more promise for growth as we are seeing increasing
adoption of CTRM for managing price and operational risks in the supply chains of agricultural, CPG and metals
intensive industries. We expect growth in these markets will continue, contributing to an overall growth rate in the
North American market on par with the global average of approximately 5%.
© 2013 Commodity Technology Advisory LLC
Houston TX and Prague CZ