Reports ComTech Forecasts 2015 Global CTRM Market at $1.68 | Page 12

2015–2020 CTRM Market Outlook

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ever, we believe this pause will be temporary as the market finds
equilibrium and demand for oil and oil products systems will again
show solid growth of 5–6% per year.

CTRM for NGL trading, which is almost entirely centric to
the North American market, has seen a strong increase in the last
five years as massive increases in natural gas and oil production
led to a boom in infrastructure development and strong growth
in the midstream of the market. However, with falling oil and gas
prices, we do anticipate a slowing of the market for NGL capable
systems as current infrastructure development projects complete
and the industry slows to match the slowdown in drilling. As such,
the outlook for continued growth in NGLs is limited and we believe
beyond 2015, the market will see year over year increase of about
3–4%.

Coal producers and traders are continuing to suffer 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
continue to 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. Precious metals prices have continued to fall over the

last two years and demand for new trading systems has been low.
Further, as gold prices are driven by a number of influences outside of physical supply and demand, it is difficult to forecast future
performance of this market. In all, and based on past performance,
ComTech believes that this commodity segment will produce a
slight increase in demand (less than 5%) through 2020.

As previously noted, demand for industrial metals has softened over the last 3 years. We are, however, forecasting growth in
CTRM for metals and ores to increase by about 5% per year as that
market continues to adopt vendor supplied solutions in a maturing
market.

Despite recent low commodity prices, continuing demand
for agricultural products and high levels of price volatility will keep
demand for ag and soft centric systems relatively strong. Additionally, increasing adoption of CTRM products by agricultural and CPG
market players will drive additional growth for technology in those
markets. We anticipate that sales of CTRM capable systems will
remain high as agricultural centric market participants continue to
adopt to these systems to better manage price, currency, credit and
operational risk associated with their long, global supply chains.
However, it is important to note that the ags and softs market is
more sensitive to price and that average license values in certain
geographies and segments of this market can be as much as 2535% lower than for other commodities. In all, we anticipate growth
in this commodity segment will average as high as 9% per year over
the next 5 years.

© Commodity Technology Advisory LLC, 2015, All Rights Reserved.