According to the latest market study on 'Tokenization Market to 2027 - COVID- Impact and Global Analysis - by Component (Solution and Services), Deployment (Cloud and On-premise), Enterprise Size (SMEs and Large Enterprises), Industry Vertical (BFSI, Retail, IT & Telecom, Healthcare, Government, and Others); and Geography,' the market was valued at US$ 1,159.5 million in 2019 and is projected to reach US$ 6,823.7 million by 2027; it is expected to grow at a CAGR of 25.7% from 2020 to 2027.
North America is estimated to dominate the tokenization market, followed by Europe. The growing payment security concerns and stringent regulatory compliances are some of the major factors anticipated to fuel the demand for tokenization in North America. Moreover, APAC is expected to witness the highest CAGR during the forecast period. The tokenization market in APAC is gaining prominence, as the tokenization solution offers proactive security measures to prevent data breaches. Additionally, the rising awareness among SMEs and large enterprises in the APAC region regarding the benefits of the tokenization process has resulted in increased adoption of tokenization to combat cyber frauds and data thefts.
APAC region comprises key economies, such as China, India, Australia, Hong Kong, and Japan, which are rapidly installing the tokenization solution in various industries. Moreover, the growing IT & telecom sector, particularly in developing economies of the region, is likely to propel the growth of the tokenization market. Additionally, the growing trend of online shopping in the MEA region is expected to boost the adoption of tokenization solutions by retailers.
Impact of COVID-19 on Tokenization Market
The COVID-19 epidemic is changing the functioning of businesses worldwide. The worldwide payment ecosystem has proven strong in the face of the epidemic, as the general population endures to trust payments systems as well as providers. Considering this factor, there were no considerable interruptions of fundamental infrastructure in the payment ecosystem. Nevertheless, the payment industry is not majorly affected by this crisis. The major changes for payment providers attributed to the epidemic comprise a surge in non-performing loans, a decline in revenues, and greater demand on client service teams. Total payment amounts have contracted owing to the decline in consumption as well as trade.
In the short term, this change is expected to push payment providers to make changes in operating model, likely prioritizing greater flexibility, as well as new short-term goals. However, the long-term impacts of the epidemic on global payments are expected to be even greater. Some of the major changes that are anticipated to take place include robust thrust towards cashless society, need for innovative fraud protection tools and solutions, strict environment for payments fintechs, digital innovation, and growth for tokenized mobile wallets.
The Report Segments the Global Tokenization Market as Follows:
By Component
By Deployment
By Enterprise Size
By Industry
By Geography
North America is estimated to dominate the tokenization market, followed by Europe. The growing payment security concerns and stringent regulatory compliances are some of the major factors anticipated to fuel the demand for tokenization in North America. Moreover, APAC is expected to witness the highest CAGR during the forecast period. The tokenization market in APAC is gaining prominence, as the tokenization solution offers proactive security measures to prevent data breaches. Additionally, the rising awareness among SMEs and large enterprises in the APAC region regarding the benefits of the tokenization process has resulted in increased adoption of tokenization to combat cyber frauds and data thefts.
APAC region comprises key economies, such as China, India, Australia, Hong Kong, and Japan, which are rapidly installing the tokenization solution in various industries. Moreover, the growing IT & telecom sector, particularly in developing economies of the region, is likely to propel the growth of the tokenization market. Additionally, the growing trend of online shopping in the MEA region is expected to boost the adoption of tokenization solutions by retailers.
Impact of COVID-19 on Tokenization Market
The COVID-19 epidemic is changing the functioning of businesses worldwide. The worldwide payment ecosystem has proven strong in the face of the epidemic, as the general population endures to trust payments systems as well as providers. Considering this factor, there were no considerable interruptions of fundamental infrastructure in the payment ecosystem. Nevertheless, the payment industry is not majorly affected by this crisis. The major changes for payment providers attributed to the epidemic comprise a surge in non-performing loans, a decline in revenues, and greater demand on client service teams. Total payment amounts have contracted owing to the decline in consumption as well as trade.
In the short term, this change is expected to push payment providers to make changes in operating model, likely prioritizing greater flexibility, as well as new short-term goals. However, the long-term impacts of the epidemic on global payments are expected to be even greater. Some of the major changes that are anticipated to take place include robust thrust towards cashless society, need for innovative fraud protection tools and solutions, strict environment for payments fintechs, digital innovation, and growth for tokenized mobile wallets.
The Report Segments the Global Tokenization Market as Follows:
By Component
- Solution
- Services
By Deployment
- Cloud
- On-Premise
By Enterprise Size
- SMEs
- Large Enterprises
By Industry
- BFSI
- Retail
- IT and Telecom
- Healthcare
- Government
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
- Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
- Middle East and Africa (MEA)
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
- South America (SAM)
- Brazil
- Argentina
- Rest of SAM
Table of Contents
1. Introduction
3. Research Methodology
4. Tokenization Market Landscape
5. Tokenization Market - Key Market Dynamics
6. Tokenization - Global Market Analysis
7. Tokenization Market Analysis - By Application
8. Tokenization Market Analysis - By Component
9. Tokenization Market Analysis - By Deployment
10. Tokenization Market Analysis - By Enterprise Size
11. Tokenization Market Analysis - By Industry Vertical
12. Tokenization Market - Geographic Analysis
13. Impact of COVID-19 Pandemic on Global Tokenization Market
14. Industry Landscape
15. Company Profiles
16. Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Broadcom, Inc.
- CipherCloud, Inc.
- FUTUREX
- Fiserv, Inc.
- Micro Focus International plc
- OpenText Corporation
- Sequent Software Inc.
- TokenEx
- Thales Group
- Visa, Inc.
