Reports ComTech Forecasts 2015 Global CTRM Market at $1.68 | Page 10

2015–2020 CTRM Market Outlook

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Figure 6 | Total CTRM Market value by Industry Segment by Year

technology solutions, including replacement systems and
expansion of existing solutions. With declining prices and increased volatility in oil and oil products, we expect that market
will continue to attract investment, including new traders, and
this market will continue to drive additional growth for CTRM
products, particularly in the Asia-Pacific region. Smaller oil
trading companies have also been active buyers of CTRM solutions over the last couple of years, particularly cloud deployed
solutions, and we do expect this trend to continue.

As previously mentioned, with low oil and gas prices in
North America, regional scale oil and gas producers have
mothballed CTRM acquisition/replacement projects and we
expect lower activity in this market for the near term. Though
global producers have also been impacted by lower oil prices,
we do anticipate their scale will allow them to continue to invest in systems, though potentially at a reduced pace as compared to previous years. While the sudden decline in oil and
liquids prices have affected many midstream operators, we
do see continued spend in that market in North America as
many new system purchases are intended to support facility
development. Given the long lead time necessary for design
and construction, these projects will continue for some time
despite the near term impact of lower liquids prices. However,

should drilling continue to slump for an extended period, we
would expect a lower spend in this segment until some recovery in oil or gas prices begins to stimulate new drilling activity.
Utilities, including both power and natural gas, will continue to
invest in upgrading and maintaining their trading/marketing
capabilities, though the rate of growth for those expenditures
is expected to be lower than the overall market.

Several large agricultural and CPG companies committed to very large CTRM deals (with licenses value of more than
$10 million) in the period from 2008 to 2012; however, ComTech has previously noted that we believe these size of deals
are an exception and we do not believe deals of this scale will
become the norm in this market. In fact, since 2012, we are
unaware of any single deal resulting in a license sale of greater
than $5 million. Without the impact of these mega-deals, the
total value of new licenses actually declined from $235 million in 2012 to $210 million in 2014. We do believe the 2014
results provide a more reliable baseline for forecasting and do
not expect to see any additional exceptionally large deals to be
signed in the foreseeable future.

The global metals markets began slowing in 2012 as demand declined due to lower global economic growth. Despite
earlier predictions of a near term recovery, the market for met-

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