Tokenization Market Size, Share, Companies & Trends Analysis Report By Component (Solution, Service), By Application (Compliance Management, User Authentication, Payment Security), By Vertical ({Banking, Financial Services, and Insurance}, Retail, Healthcare, Automotive, Others) Based on Region, And Segment Forecasts, 2022 - 2028

  • Report ID: BMRC 1731 | Number of pages: 190 | Published Date: Feb 2022

    Published | Category: Technology And Media | Delivery Timeline: 48 hrs

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To know the impact of COVID-19 On Tokenization Market Size, Share, Companies & Trends Analysis Report By Component (Solution, Service), By Application (Compliance Management, User Authentication, Payment Security), By Vertical ({Banking, Financial Services, and Insurance}, Retail, Healthcare, Automotive, Others) Based on Region, And Segment Forecasts, 2022 - 2028 Market

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Market Size Forecast Scenarios (Optimistic, Baseline and Pessimistic) 2021-2027

The global Tokenization Market is valued at USD 1824.7 Million in 2020 and is expected to reach USD 6312.8 Million by 2027 with a CAGR of 19.4% over the forecast period.

Global Tokenization Market: Global Size, Trends, Competitive, Historical & Forecast Analysis to 2021-2027, Rising cases of credit card fraud, increased preference of customers towards contactless payments, and rising use of digital payments are some of the major factors driving the growth of the global Tokenization market.

Scope of Global Tokenization Market Report:

Tokenization is the process of transforming sensitive data into non-sensitive data known as “tokens” that can be developed in a database or internal system without revealing it to the public. Tokenization is often wont to safeguard sensitive data by replacing it with an irrelevant value of a similar length and format because of the original. The tokens are subsequently transported to an organization’s internal systems to be used, while the first data is kept safe during a token vault. Tokenized data, unlike encrypted data, is unbreakable and irrevocable.

The purpose of tokenization is to swap out sensitive data typically payment card or checking account numbers with a randomized digit within the same format but with no intrinsic value of its personal.This varies from encryption, where a number is mathematically altered, but its original pattern is still stored within the new code known as format-preserving encryption. Tokenization confiscates valuable data from user’s environment and replaces it with these tokens. Furthermost organizations have sensitive data in their systems, whether it’s credit card information, medical information, Social Security statistics, or anything else that requires security and safety.

During the COVID-19 pandemic has shown a positive impact on the growth of the tokenization market owing to its increased demand in after the outbreak of COVID-19, the volume of online payments has surged drastically owing to the social distancing and increased dependency on online payments for shopping.

Tokenization Companies:

Global tokenization market reports cover prominent players like Visa, Thales e-Security, Symantec, Micro Focus, Fiserv, Gemalto, First Data, Worldpay, Dell Technologies, and CipherCloud, and others.

Tokenization Market

Global Tokenization Market Segmentation:

The global tokenization market is segmented on the basis of component, application, vertical and regional & country level. On the basis of component, the tokenization market is classified as, solution and service. On the basis of application, the market is classified as compliance management, user authentication and payment security. On the basis of vertical, the market is classified as banking, financial services, insurance, retail, healthcare, automotive and others.

By Component:

  • Solution
  • Service

By Application:

  • Compliance Management
  • User Authentication
  • Payment Security

By Vertical:

  • Banking, Financial Services, and Insurance
  • Retail
  • Healthcare
  • Automotive
  • Others

News: NPCI Launched NTS Platform for Tokenization of RuPay Cards

On October 20th, 2021; National Payments Corporation of India (NPCI) announced the launch of the NPCI Tokenization System (NTS) that will support tokenization of cards as an alternative to storing card details with merchants. The NPCI Tokenization System will support the tokenization of RuPay cards to further enhance the safety of customers and provide a seamless shopping experience.

Rising Prevalence of Credit Card Fraud, Increased Preference of Customers towards Contactless Payments and Increasing Adoption of Digital Payment are Driving the Market Growth

One of the major factors driving the growth of global tokenization market is rising cases of credit card fraud. For instance; according to the Cyber Crime & Security; in 2019, the state of Maharashtra in India had the highest number of credit and debit card frauds, with approximately 159 cases registered with the authorities. The country recorded over 365 cases of credit and debit card frauds that year. This category of crime came under the purview of Sections 420 of the Indian Penal Code. There were 650,572 cases of identity theft in the U.S. in 2019. Of those, 41 percent, or just over 270,000, were credit card fraud.

In addition, increased preference of customers towards contactless payments is also supplementing the market growth. According to UK Finance; in 2020 the number of contactless payments made in the UK increased by 12% to 9.6bn payments. 83 percent of people in the UK now use contactless, Supermarkets were the most popular place to use contactless payments in 2020, accounting for 41 percent of contactless payments. According to a survey that took place in mid-March, around 30% of the respondents have started to use contactless payments since the pandemic began. And 70% of those users are likely to continue using contactless payments post-COVID-19.

Furthermore, the increasing adoption of digital payments is also supporting market growth. According to the digital payment ecosystem, the total volumes of digital payments have also increased from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21 due to sustained efforts towards digitalization. According to Razorpay, digital payment transactions have grown up to 76% for the past 12 months with several first-time digital payment users.

However, a lack of knowledge and understanding about tokens and ambiguity between encryption and tokenization among end-users may hamper the growth of the global tokenization market. In spite of that, rising technological advancement in the rising demand for cloud-based tokenization solutions and services may provide lucrative opportunities for the further growth of the market.

North America is Expected to Dominate the Global Tokenization Market

North America is expected to dominate the growth of the global tokenization market due to the growing surge in cyber-attacks, changing customer preferences toward the adoption of contactless cards and digital-first credit cards in this region. In 2020, the FBI received 15,421 internet crime complaints related to tech support fraud.

The Asia Pacific is expected to witness the fastest growth in the global tokenization market due to the increasing adoption of tokenization solutions, rising use of smartphones for online shopping, and the rapid adoption of online transactions inviting a number of increased cyber threats. In 2020, about 1.35 billion mobile phones were sold, with Samsung dominating yearly sales at over 253 million units sold.

  Details
Historical data 2015 - 2020
Forecast Period 2021 - 2027
Market Size in 2020: USD 1824.7 Million 
Base year considered 2020
Forecast Period CAGR %:

19.4% 

Market Size Expected in 2027: USD 6312.8 Million 
Tables, Charts & Figures: 175
Pages 200
Tokenization Companies Visa, Thales e-Security, Symantec, Micro Focus, Fiserv, Gemalto, First Data, Worldpay, Dell Technologies, and CipherCloud, and others.
Segments Covered By Component, By Vertical, By Application
Regional Analysis North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa

Key Benefits of Global Tokenization Industry Report

  • Global Tokenization Industry report covers in-depth historical and forecast analysis.
  • Global Tokenization Industry research report provides detailed information about Market Introduction, Market Summary, Global market Revenue (Revenue USD), Market Drivers, Market Restraints, Market opportunities, tokenization services, Tokenization Companies, tokenization technology, Competitive Analysis, Regional and Country Level.
  • Global Tokenization Industry report helps to identify opportunities in the marketplace.
  • Global Tokenization Industry report covers extensive analysis of emerging trends, Types of Tokens, and competitive landscape.

On Special Requirement Tokenization Industry Report is also available for below Regions and Country:

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Switzerland
  • Belgium
  • Rest of Europe

Asia-Pacific

  • South Korea
  • Japan
  • China
  • India
  • Australia
  • Philippines
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

Latin America

  • Mexico
  • Colombia
  • Brazil
  • Argentina
  • Peru
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Types of Tokens

  • High-value tokens (HVTs)
  • Low-value tokens (LVTs) 

For need more Info on Types of Tokens Contact


Frequently Asked Questions (FAQ) :
Tokenization is the process of transforming sensitive data into non-sensitive data known as “tokens” that can be developed in a database or internal system without revealing it to the public. Tokenization is often wont to safeguard sensitive data by replacing it with an irrelevant value of a similar length and format because of the original.
The Global Tokenization Market is expected to reach USD 6312.8 Million by 2027 with a CAGR of 19.4% over the forecast period.
Rising cases of credit card fraud, increased preference of customers towards contactless payments, and rising use of digital payments are some of the major factors driving the growth of the global Tokenization market.
Global tokenization market reports cover prominent players like Visa, Thales e-Security, Symantec, Micro Focus, Fiserv, Gemalto, First Data, Worldpay, Dell Technologies, and CipherCloud, and others.
North America is Expected to Dominate the Global Tokenization Market



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Tokenization Market Size, Share, Trends, Growth And Industry Analysis By 2027

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Tokenization Market Size, Share, Companies & Trends Analysis Report By Component (Solution, Service), By Application (Compliance Management, User Authentication, Payment Security), By Vertical ({Banking, Financial Services, and Insurance}, Retail, Healthcare, Automotive, Others) Based on Region, And Segment Forecasts, 2022 - 2028

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