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Tokenization - Global Market Trajectory & Analytics

  • ID: 4806346
  • Report
  • February 2022
  • Region: Global
  • 455 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • American Express Company
  • Fiserv, Inc.
  • HST Campinas, SP
  • Mastercard Inc.
  • Sequent Software Inc.
  • Thales TCT

Global Tokenization Market to Reach US$4.3 Billion by the Year 2026


The concept of tokenization focuses on converting the critical information into non-critical data, commonly termed as tokens, which can be used in internal systems or databases without exposing the information to the public. Tokenization protects sensitive information by replacing it with non-significant value holding the same format and length as the original one. Tokenization holds high relevance for organizations with critical information in internal systems, such as credit card data, social security numbers and medical information that demands enhanced protection and security levels. Growth in the global market is set to be driven by increasing focus on fraud prevention and payment security measures in the wake on COVID-19-induced accelerated shift towards online and contactless payments. The market is gaining from rising incident of credit card frauds and the pressing need for robust payment security that covers different components like tokenization-as-a-service and contactless payments. The market growth is also fueled by the need to comply with stringent regulations, improve fraud prevention and deliver enhanced experience to customers. Tokenization is poised to receive a major demand stimulus from increasing uptake of contactless payments as well as rising investments in cloud-based tokenization options.

Amid the COVID-19 crisis, the global market for Tokenization estimated at US$1.6 Billion in the year 2020, is projected to reach a revised size of US$4.3 Billion by 2026, growing at a CAGR of 18.4% over the analysis period. Solutions, one of the segments analyzed in the report, is projected to grow at a 19.6% CAGR to reach US$3.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Services segment is readjusted to a revised 16% CAGR for the next 7-year period. This segment currently accounts for a 35.4% share of the global Tokenization market. The Solutions segment`s growth is favored by increasing deployment of tokenization solutions across SMEs as an effective approach to mitigate the risk of identity theft and payment frauds. Companies operating in the industry are increasingly opting for tokenization solutions to comply with PCI DSS regulations.



The U.S. Market is Estimated at $697.9 Million in 2021, While China is Forecast to Reach $476.3 Million by 2026


The Tokenization market in the U.S. is estimated at US$697.9 Million in the year 2021. The country currently accounts for a 38.22% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$476.3 Million in the year 2026 trailing a CAGR of 23.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 15.4% and 17.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.5% CAGR while Rest of European market (as defined in the study) will reach US$586.8 Million by the end of the analysis period. North America dominates market share on account of stringent regulations like CCPA coupled with rising incident of cyber-attacks, mainly related to payment frauds. Factors such as digital first credit cards and increasing uptake of contactless cards are creating strong demand for tokenization services and solutions. The regional market is also gaining from notable expansion of e-commerce along with extensive use of smartphones to make online payments and access several options like government services, online gaming and digital information. Growth in Asia-Pacific region is attributed to government efforts to deal with financial frauds as well as implementation of stringent regulations to improve cyber-security.

Select Competitors (Total 190 Featured) -

  • American Express Company
  • AsiaPay Limited
  • Bluefin Payment Systems LLC
  • Cardlink
  • Fiserv, Inc.
  • Futurex LP
  • HelpSystems, LLC
  • HST Campinas, SP
  • IntegraPay
  • Marqeta, Inc.
  • Mastercard Inc.
  • MeaWallet AS
  • Micro Focus International plc
  • Paragon Payment Solutions
  • Sequent Software Inc.
  • Shift4 Payments, LLC
  • Sygnum Bank AG
  • Thales TCT
  • TokenEx, LLC
  • VeriFone, Inc.
  • Visa Inc.
Frequently Asked Questions about the Global Market for Tokenization

What is the estimated value of the Global Market for Tokenization?

The Global Market for Tokenization was estimated to be valued at $1.6 Billion in 2020.

What is the growth rate of the Global Market for Tokenization?

The growth rate of the Global Market for Tokenization is 17.9%, with an estimated value of $4.3 Billion by 2026.

What is the forecasted size of the Global Market for Tokenization?

The Global Market for Tokenization is estimated to be worth $4.3 Billion by 2026.

Who are the key companies in the Global Market for Tokenization?

Key companies in the Global Market for Tokenization include American Express Company, AsiaPay Limited, Bluefin Payment Systems LLC, Cardlink, Fiserv, Inc., Futurex LP, HelpSystems, LLC, HST Campinas, SP and Marqeta, Inc..
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • American Express Company
  • Fiserv, Inc.
  • HST Campinas, SP
  • Mastercard Inc.
  • Sequent Software Inc.
  • Thales TCT

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Tokenization – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • 2020 Marked as a Year of Disruption & Transformation
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed in 2021?
  • Shift towards Digital Technologies Enhances Prospects for Security Technologies & Solutions
  • Global Cybersecurity Market Growth Outlook (In %) for Years 2019 through 2025
  • Heightened Threat of Data Breaches During Pandemic Supports Tokenization Market
  • Threat to Security and Privacy: Increase in Cyberattacks and Hacking amidst COVID-19 Pandemic
  • Pandemic Propels Payment System Ecosystem to Entirely New Levels with Tokenization & Other Approaches
  • An Introduction to Tokenization
  • Objective of Tokenization
  • PCI DSS and Tokenization
  • Focus on Fraud Prevention & Payment Security Gives Extraordinary Thrust to Global Tokenization Market
  • Surge in Online Payments & Contactless Payments Accelerate Market Growth
  • Solution Segment & BFSI Vertical Sweep Tokenization Market with Majority Stake
  • SMEs Segment to Exhibit Rapid Growth
  • Developed Regions Lead the Global Tokenization Market
  • World Brands
  • Recent Market Activity

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Digital Transformation of Businesses and the Imperative Need to Ensure Security of Sensitive Data to Spur Tokenization Market
  • Global Digital Data Created (In Zettabytes) for the Years 2015, 2020, 2025, and 2030
  • Digital Transformation Accelerates Demand for Tools to Safeguard Sensitive Data: Global Digital Transformation Spending (in US$ Billion) for 2017-2023
  • Data Tokenization: Unlocking the Potential of Data-Based Economy
  • Encryption Vs Tokenization: A Comparative Review
  • Use Cases of Tokenization and Encryption
  • BFSI: The Major End-Use Vertical for Tokenization Solutions
  • Surge in Digital Transactions to Boost Need for Tokenization
  • Top Countries in Digital Transactions Worldwide: Breakdown of Real-time Transaction Volume by Country for 2020
  • Rising Customer Inclination towards Contactless Payments Amidst the Pandemic Boosts Market Growth
  • Global Contactless Payments Market Size (in US$ Billion) for the Years 2020, 2022, 2024 and 2026
  • Is COVID-19 Scenario Making Payment Space to Bid Adieu to Cash Payments?
  • Steep Rise in Fraud Attacks amid COVID-19 Predicament Marks Opportunity for Tokenization Market
  • Financial Losses in the US Due to Internet Crime in US$ Million: 2012-2020
  • Cumulative Global Online Fraud (In US$ Billion) by Region during 2020 to 2024
  • With Mobile Wallets Going Mainstream, Tokenization Comes into Play to Ensure Security of Transactions
  • Common Reasons for Use of Digital Wallets: % Share of Users by Reason Cited for 2020
  • Digital Wallet Adoption by Generation: % of People Using Digital Wallets in 2020
  • Retail and E-Commerce Market to Record High Adoption of Tokenization Solutions
  • Global B2C E-Commerce Sales in US$ Trillion for the Years 2019, 2021, 2023 & 2025
  • Retail M-Commerce Sales as % of Retail E-commerce Sales Worldwide for the Years 2016, 2018, 2020 & 2022
  • Advantages of Tokenization for the Rising E-commerce Space
  • Pandemic Fast Forwards eCommerce Growth
  • Global e-Commerce Market Growth Outlook (In %) For Years 2019 Through 2025
  • Data Tokenization Becomes Important for Government Agencies
  • Tokenization Becomes Relevant Amidst Digitization of Infrastructure in Energy & Utilities
  • Compliance with Strict Regulatory Guidelines Drives Enterprises to Adopt Tokenization Solutions
  • Growing Proliferation of Cloud-based Solutions & Services Presents Market Opportunity
  • SMEs Witness High Adoption of Tokenization Solutions
  • Global Tokenization Market Breakdown of Revenues (in %) by Organization Type for 2020
  • Growing Importance of Tokenization in Natural Language Processing (NLP)
  • Tokenization Emerges a Key Strategy to Improve Customer Experience and Enhance Revenue Generation
  • Protection of Sensitive Application Data in DevOps Enhances Need for Tokenization
  • Global DevOps Market by Geographic Region (in US$ Thousand) for 2020 and 2027
  • Challenges Facing Tokenization Market

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)

CANADA

JAPAN

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)

CHINA

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)

EUROPE

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)

FRANCE

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

UNITED KINGDOM

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)

REST OF EUROPE

ASIA-PACIFIC

  • Tokenization Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)

REST OF WORLD

IV. COMPETITION

  • Total Companies Profiled: 190
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • American Express Company
  • AsiaPay Limited
  • Bluefin Payment Systems LLC
  • Cardlink
  • Fiserv, Inc.
  • Futurex LP
  • HelpSystems, LLC
  • HST Campinas, SP
  • IntegraPay
  • Marqeta, Inc.
  • Mastercard Inc.
  • MeaWallet AS
  • Micro Focus International plc
  • Paragon Payment Solutions
  • Sequent Software Inc.
  • Shift4 Payments, LLC
  • Sygnum Bank AG
  • Thales TCT
  • TokenEx, LLC
  • VeriFone, Inc.
  • Visa Inc.
Note: Product cover images may vary from those shown