Reports ComTech Forecasts 2015 Global CTRM Market at $1.68 | Page 8

2015–2020 CTRM Market Outlook

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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 granular review.

In line with previous years estimates, we anticipate the
total global CTRM market will grow by 4-6%, with our estimates
Figure 4 | Total CTRM Market value

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
3.5-4.5%, while increasing adoption of SaaS or “cloud” based
solutions will see growth rates from 15-17%, a slight increase
over our previous estimates for the market. Nonetheless, while
cloud solutions will continue to increase in number of systems
deployed, particularly in the low and mid tiers of the market, traditionally installed solutions will continue to dominate in terms
of revenues generated for the foreseeable future. However, with a continuing
push by vendors to migrate existing clients and/or sell new clients on either
cloud implementations or a lease/rental type licensing agreement (in part to
ensure a predictable revenue stream
for those vendors), the lines between
license revenues vs. SaaS/Hosted/
Cloud revenues will blur in the future.

REGIONAL REVIEW
High levels of natural gas production in North America
have had 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 future outlook for natural gas prices
is flat to today’s market, it is very unlikely that this
market will see much in the way of increased demand
for CTRM solutions for natural gas or power during
the study period.

Most sales of new licenses 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%.
Europe is continuing to face difficulties in its banking markets
and much of the continent has been battling economic recession since the global financial crisis of 2008. While there are
indications that there may be an economic recovery in the offing, a number of factors (including continuing debt issues in
several countries, insufficient capital for trade finance, delayed
opening of the liberalized energy markets, and a regulatory environment that is still unsettled) are creating headwinds that

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