Tokenization Market Size, Industry & Landscape Outlook, Revenue Growth Analysis to 2027

The Global Tokenization Market is expected to grow at 24.14% CAGR between 2017-2023, and it is expected to grow at $2341.38 Billion by 2023. The need to keep crucial data safe is the reason behind the growing demand for the tokenization market.

The global Tokenization market is witnessing rapid traction. The market growth attributes to the increasing demand for secured payment security approaches to control rising online fraudulent cases. Rising preference for online shopping has led to the wide penetration of Internet usages and growing eCommerce business that allows online shopping sitting at the convenience of home. 

This invariably allows equal opportunities for cybercriminals to conveniently breach codes of payment gates, making the systems vulnerable to their tricks. Technological advancements prove to be a two-edged sword allowing criminals to find new ways to crack the codes to replace authorized merchants' codes with dummies, gaining access to consumers' data and bank accounts.

Moreover, the fastest-growing deployment of Tokenization in increasing numbers of organizations to obtain enhanced speed management capabilities to provide 24/7 purchasing services escalate the market demand. In its recently published analysis, Market Research Future (MRFR) asserts that the global Tokenization market is expected to perceive accruals of USD 2341.38 BN by 2023, growing approximately at 24.14% CAGR throughout the forecast period (2017 to 2023).

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Additionally, the advantages of Tokenization that offer organizations the data security on the customer's demand and helps with DSS regulatory compliances influence market growth. Growing eCommerce mCommerce industries, coupled with the online payment services offered by various service providers like utilities, gas, telecom, etc., are creating more opportunities for Tokenization fueling market growth. Improvement in outsourcing payment solution has grabbed the organization's attention towards the Tokenization. 

Rising security concerns in banking activities are one of the key market growth propellers. Wide penetration of smartphones contributes to the tokenization market growth to an extent. Furthermore, the proliferation of Bring Your Own Device (BYOD) and Choose Your Own Device (CYOD) trends push the market growth, introducing many security threats associated with payment and data theft. Based on component, integration services is the largest segment in the global Tokenization market. 

Tokenization Market Segmentation

The report is segmented into six dynamics; 

By Component :    Solutions (indoor positioning system, outdoor positioning system, others) and Services (Professional, Integration, Managed, Consulting, Support Maintenance, and Training Education, and other services). 

By Application AreaPayment Security, Compliance Management, User Authentication, and others. 

By Deployment : On-Cloud and On-Premises. 

By Organization SizeSmall Medium-sized Enterprises (SMEs) and Large Enterprises. 

By End-User BFSI, IT Telecom, Healthcare, Government Defense, Industrial, Commercial, Retail, Automotive, and others. 

By Regions :  North America, Europe, APAC, and Rest of the World.

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COVID-19 Analysis:

Covid-19 had a positive impact on the Global Tokenization Market, and the Global Tokenization Market Size is expected to grow from $1.9 billion in 2020 to $4.8 billion by 2025 post-covid. After the covid outbreak, the volume of online payment has increased drastically as people stay indoors and they use online payments for shopping. The increasing number of online payments has led to fraud activities, phishing, counter attacks. As many business organizations are dependent on online payment services, the attackers are attracted to steal sensitive and valuable money-related data. Online shopping has become more popular, and with it, the need for payment security has become important. 

Tokenization won’t allow stealing personal data, so it has become a big weapon for all business organizations. People are starting to use tokenization to make their data more secure. So, the Global Tokenization Market is on the rise. COVID-19 created a good impact on the Global Tokenization Market.

Global Tokenization Market – Regional Analysis 

North America dominates the global tokenization market. The largest market share attributes to the growing adoption of advanced technologies in the payment security industry. Besides, the rising demand for secured processes to accept payment securely from online applications drives the market's growth. Moreover, the proliferation of payment security that reduces the security risk posed by payment data in the systems boost the growth of the regional market. 

Europe stands second in the global tokenization market. This market is gaining momentum as businesses in the region are constantly monitoring new developments, shaping their PCI DSS technology. Additionally, the market is driven by the increasing penetration of the Internet and payment security needs. 

The Asia Pacific tokenization market is also showing positive growth.  Factors such as the rising preference for mobile payments and fraudulent cases of online payments influence the regional market's growth. China, Japan, and India hold a notable share in the regional market as the companies in these countries have found Tokenization to be a cheaper, easier to use, and more secure solution than end-to-end encryption payment processes. 

Global Tokenization Market – Competitive Analysis 

The tokenization market appears to be competitive due to the presence of several well-established players. These players initiate strategic moves such as mergers acquisitions, collaboration, innovation, and brand reinforcement to gain a larger competitive share. The market would witness intensified competition with innovations and an increase in RD investments and MA. 

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Major Players:

Players leading the global tokenization market are Gemalto NV (Netherlands), Symantec Corporation (US), CardConnect Corp. (US), CyberSource Corporation (US), Thales e-Security, Inc. (US), 3Delta Systems, Inc.(US), Hewlett-Packard Enterprises (US), CipherCloud (US), Liaison Technologies, Inc.(US), Fiserv, Inc. (US), Futurex (US), Paymetric, Inc. (US), TokenEx LLC (US), First Data Corporation (US), and Protegrity USA, Inc. (US) among others. 

Industry/ Innovation/ Related News:

December 09, 2020 ---- an American multinational financial service company, Mastercard Incorporated, announced its partnership with MatchMove (Singapore), a leading 'banking-as-a-service provider, and Tappy Technologies (the US), a world-leading wearable payment integrator to push Tokenization. The trio has introduced Tokenization into a small, flexible chip that can be attached to a range of battery-less wearables and accessories like watch straps or keyrings, turning them into secure contactless payments devices.

This contactless-enabled wearable device works exactly like any contactless card or digital wallet where the user taps the wearable at any contactless accepted terminal. MatchMove cardholders can now add their MatchMove Mastercard® to this payment chip by simply placing the wearable or the accessory on a Bluetooth-connected device developed by Tappy Technologies.

About Market Research Future:

At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research Consulting Services.


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Animesh Rao

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