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Tokenization Market

Tokenization Market Forecasts to 2028 – Global Analysis By Type (Vaulted, Vaultless), Component (Solutions, Services), Technology, Application, End User, and By Geography

4.3 (25 reviews)
Published: June 2022 ID: SMRC21521
4.3 (25 reviews)
Published: June 2022 ID: SMRC21521

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Tokenization Market is accounted for $2.33 billion in 2021 and is expected to reach $8.85 billion by 2028 growing at a CAGR of 21.0% during the forecast period. Tokenization refers to information security systems, which generate a unique ID to avoid unapproved access to sensitive information. The token has no extrinsic or exploitable meaning or value; it is a piece of data that addresses another, more significant piece of information.

Market Dynamics:

Driver:

Reducing the risk from data breaches


Criminals target organizations that acknowledge credit and debit cards since there's a wealth of intelligence in payment information. Tokenization safeguards organizations from the negative financial impacts of data theft. Even in the case of a breach, significant personal information simply isn't there to steal. Credit card tokenization assists online organizations to improve their data security, from the point of data capture to storage as it eliminates the actual storage of credit card numbers in the POS machines and internal systems.

Restraint:

Increase in complexities


The execution of tokenization creates tokens and stores the actual values of credit/debit cards in token vaults. Because of the increased storage space, the complexities in the management of tokenization are additionally expanding. Because of expanded reliance on web-based channels for payments, these channels have turned into a favorite target for cyber attackers. After the implementation of tokenization, as a feature of an optimized fraud rule set, it is essential to understand and analyze several factors around each transaction to conduct effective real-time screening. 

Opportunity:

Increasing demand for cloud-based tokenization solutions and services


Cloud-based tokenization is the technique of exchanging sensitive information for an irreversible, non-sensitive placeholder called a token and safely storing the original, sensitive information outside of the association's internal systems. It tends to be more reasonable and simpler to integrate than traditional on-premises tokenization. It additionally further diminishes an organization's risk and compliance scope by eliminating sensitive information from its data environments. Moreover, organizations can safeguard the data without sacrificing its utility or the agility of current business processes by utilizing format- and/or length-preserving tokens as placeholders for the original, sensitive data.

Threat:

Lack of skilled workforce


Technology is as effective as the workforce that utilizes it. If workers are not contributing data or pulling the right reports, then the system will not provide real value. By implementing a training program for all representatives, leadership fosters the values and behaviors vital for organizational reliability and helps support talent retention and company growth. Training should review the fundamentals of reliability, detail the relationship between maintenance and operations, and teach how to utilize tokenization tools to help sound security from data breaches and ensure compliance standards. 

The small and medium-sized enterprises (SMEs) segment is expected to be the largest during the forecast period

The small and medium-sized enterprises (SMEs) segment is estimated to have a lucrative growth as these enterprises are significantly adopting tokenization solutions and services for complying with obligations and risks related to frauds. Cybercriminals take advantage of poor security among SMEs by utilizing the automation strategy to attack thousands of applications at a time. The financial constraints faced by SMEs are addressed by tokenization as a service, with the segment rapidly deploying cloud-based tokenization solutions. 

The banking, financial services, and insurance (BFSI) segment is expected to have the highest CAGR during the forecast period

The banking, financial services, and insurance (BFSI) segment is anticipated to witness the fastest CAGR growth during the forecast period as this sector is the target for cybercriminals, as it manages money. To counter this issue, this sector is always on the lookout for advanced payment security products and services to protect its employees, customers, assets, offices, branches, and operations.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to the rapid adoption of tokenization solutions, expanding technological innovations, rising penetration of the web and smartphones, and the growing presence of numerous organizations, witnessing high growth in increased payment advancement, particularly in eCommerce. Consumers in the region utilize different payment methods for online transactions within and outside countries. Thus, Asia Pacific companies are facing an increasing demand for securing payment methods.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period owing to regulations as well as an increase in cyberattacks, especially payment thefts across industries. Customer inclinations for contactless cards and digital-first credit cards, Growing eCommerce, smartphone utilization for online payments, and access to a variety of services are projected to help the growth of tokenization in North America.

Key players in the market

Some of the key players profiled in the Tokenization Market include Thales, Verifone, TokenEx, AsiaPay, Micro Focus, Futurex, Mastercard, Lookout, HelpSystems, Fiserv, Entrust, CardConnect, Bluefin, MeaWallet and American Express.

Key Developments:

In August 2021, Lookout launched new mobile security offering for small businesses. This development will help the company to diversify the portfolio to offer better solutions for various purposes, which could be a one-stop solution for customers, and helps to attract new customers.

In October 2021, American Express collaborated with Goldman Sachs to deliver cloud-based payment solutions for large corporate clients. American Express would utilize Goldman Sach’s Transaction Banking (TxB) platform to provide multiple payment options, making B2B payments easier and more efficient for large companies.
 
Types Covered:
• Vaulted Tokenization
• Vaultless Tokenization
 
Positioning Systems Covered:
• Outdoor Positioning System
• Indoor Positioning System
 
Tokenization Techniques Covered:
• Gateway-Based
• Application Programming Interface (API)-Based
 
Deployment Modes Covered:
• On-Premises
• Cloud
 
Components Covered:
• Solutions
• Services
 
Organization Sizes Covered:
• Small and Medium-Sized Enterprises (SMEs)
• Large Enterprises
 
Technologies Covered:
• Natural Language Processing (NLP)
• Machine Learning
• Internet Of Things (Iot)
• Cloud Computing
• Blockchain
• Artificial Intelligence
 
Application Areas Covered:
• Customer Data Management
• User Authentication
• Payment Security
• Encryption
• Compliance Management
 
Applications Covered:
• Supermarkets/Hypermarkets
• Pharmacies
• Online
• Convenience Stores

End Users Covered:
• Retail & eCommerce
• Automotive & Transportation
• Manufacturing
• IT & Telecommunications
• Hospitality
• Government and Public Sector
• Energy & Utilities
• Healthcare and Life Sciences
• Commercial
• Banking, Financial Services, and Insurance (BFSI)
• Education
• Aerospace and Defense
• Media and Entertainment

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

 

1 Executive Summary            
              
2 Preface   
          
 2.1 Abstract            
 2.2 Stake Holders           
 2.3 Research Scope            
 2.4 Research Methodology          
  2.4.1 Data Mining          
  2.4.2 Data Analysis          
  2.4.3 Data Validation          
  2.4.4 Research Approach          
 2.5 Research Sources           
  2.5.1 Primary Research Sources          
  2.5.2 Secondary Research Sources         
  2.5.3 Assumptions          
              
3 Market Trend Analysis           
 3.1 Introduction           
 3.2 Drivers            
 3.3 Restraints           
 3.4 Opportunities           
 3.5 Threats            
 3.6 Technology Analysis          
 3.7 Application Analysis          
 3.8 End User Analysis           
 3.9 Emerging Markets           
 3.10 Impact of Covid-19           
              
4 Porters Five Force Analysis           
 4.1 Bargaining power of suppliers          
 4.2 Bargaining power of buyers          
 4.3 Threat of substitutes          
 4.4 Threat of new entrants          
 4.5 Competitive rivalry           
              
5 Global Tokenization Market, By Type           
 5.1 Introduction           
 5.2 Vaulted Tokenization          
 5.3 Vaultless Tokenization          
              
6 Global Tokenization Market, By Positioning System         
 6.1 Introduction           
 6.2 Outdoor Positioning System           
 6.3 Indoor Positioning System          
              
7 Global Tokenization Market, By Tokenization Technique        
 7.1 Introduction           
 7.2 Gateway-Based           
 7.3 Application Programming Interface (API)-Based        
              
8 Global Tokenization Market, By Deployment Mode         
 8.1 Introduction           
 8.2 On-Premises           
 8.3 Cloud            
              
9 Global Tokenization Market, By Component         
 9.1 Introduction           
 9.2 Solutions            
 9.3 Services            
  9.3.1 Managed Services          
   9.3.1.1 Training and Education        
   9.3.1.2 Support and Maintenance        
   9.3.1.3 Integration Services         
   9.3.1.4 Consulting         
  9.3.2 Professional Services         
              
10 Global Tokenization Market, By Organization Size         
 10.1 Introduction           
 10.2 Small and Medium-Sized Enterprises (SMEs)        
 10.3 Large Enterprises           
              
11 Global Tokenization Market, By Technology         
 11.1 Introduction           
 11.2 Natural Language Processing (NLP)         
 11.3 Machine Learning           
 11.4 Internet Of Things (Iot)          
 11.5 Cloud Computing           
 11.6 Blockchain           
 11.7 Artificial Intelligence          
              
12 Global Tokenization Market, By Application Area         
 12.1 Introduction           
 12.2 Customer Data Management          
 12.3 User Authentication          
 12.4 Payment Security           
 12.5 Encryption           
 12.6 Compliance Management          
              
13 Global Tokenization Market, By Application         
 13.1 Introduction           
 13.2 Supermarkets/Hypermarkets          
 13.3 Pharmacies            
 13.4 Online            
 13.5 Convenience Stores           
              
14 Global Tokenization Market, By End User         
 14.1 Introduction           
 14.2 Retail & eCommerce          
 14.3 Automotive & Transportation          
 14.4 Manufacturing           
 14.5 IT & Telecommunications          
 14.6 Hospitality           
 14.7 Government and Public Sector          
 14.8 Energy & Utilities           
 14.9 Healthcare and Life Sciences          
 14.10 Commercial            
 14.11 Banking, Financial Services, and Insurance (BFSI)        
 14.12 Education           
 14.13 Aerospace and Defense          
 14.14 Media and Entertainment          
              
15 Global Tokenization Market, By Geography         
 15.1 Introduction           
 15.2 North America           
  15.2.1 US           
  15.2.2 Canada           
  15.2.3 Mexico           
 15.3 Europe            
  15.3.1 Germany           
  15.3.2 UK           
  15.3.3 Italy           
  15.3.4 France           
  15.3.5 Spain           
  15.3.6 Rest of Europe          
 15.4 Asia Pacific           
  15.4.1 Japan           
  15.4.2 China           
  15.4.3 India           
  15.4.4 Australia           
  15.4.5 New Zealand          
  15.4.6 South Korea          
  15.4.7 Rest of Asia Pacific          
 15.5 South America           
  15.5.1 Argentina          
  15.5.2 Brazil           
  15.5.3 Chile           
  15.5.4 Rest of South America         
 15.6 Middle East & Africa          
  15.6.1 Saudi Arabia          
  15.6.2 UAE           
  15.6.3 Qatar           
  15.6.4 South Africa          
  15.6.5 Rest of Middle East & Africa         
              
16 Key Developments            
 16.1 Agreements, Partnerships, Collaborations and Joint Ventures       
 16.2 Acquisitions & Mergers          
 16.3 New Product Launch          
 16.4 Expansions           
 16.5 Other Key Strategies          
              
17 Company Profiling            
 17.1 Thales             
 17.2 Verifone            
 17.3 TokenEx            
 17.4 AsiaPay             
 17.5 Micro Focus           
 17.6 Futurex            
 17.7 Mastercard           
 17.8 Lookout            
 17.9 HelpSystems           
 17.10 Fiserv             
 17.11 Entrust             
 17.12 CardConnect           
 17.13 Bluefin             
 17.14 MeaWallet           
 17.15 American Express           
              
List of Tables             
1 Global Tokenization Market Outlook, By Region (2020-2028) ($MN)       
2 Global Tokenization Market Outlook, By Type (2020-2028) ($MN)       
3 Global Tokenization Market Outlook, By Vaulted Tokenization (2020-2028) ($MN)      
4 Global Tokenization Market Outlook, By Vaultless Tokenization (2020-2028) ($MN)      
5 Global Tokenization Market Outlook, By Positioning System (2020-2028) ($MN)      
6 Global Tokenization Market Outlook, By Outdoor Positioning System (2020-2028) ($MN)     
7 Global Tokenization Market Outlook, By Indoor Positioning System (2020-2028) ($MN)     
8 Global Tokenization Market Outlook, By Tokenization Technique (2020-2028) ($MN)     
9 Global Tokenization Market Outlook, By Gateway-Based (2020-2028) ($MN)      
10 Global Tokenization Market Outlook, By Application Programming Interface (API)-Based (2020-2028) ($MN)   
11 Global Tokenization Market Outlook, By Deployment Mode (2020-2028) ($MN)      
12 Global Tokenization Market Outlook, By On-Premises (2020-2028) ($MN)      
13 Global Tokenization Market Outlook, By Cloud (2020-2028) ($MN)       
14 Global Tokenization Market Outlook, By Component (2020-2028) ($MN)       
15 Global Tokenization Market Outlook, By Solutions (2020-2028) ($MN)       
16 Global Tokenization Market Outlook, By Services (2020-2028) ($MN)        
17 Global Tokenization Market Outlook, By Managed Services (2020-2028) ($MN)      
18 Global Tokenization Market Outlook, By Professional Services (2020-2028) ($MN)      
19 Global Tokenization Market Outlook, By Organization Size (2020-2028) ($MN)       
20 Global Tokenization Market Outlook, By Small and Medium-Sized Enterprises (SMEs) (2020-2028) ($MN)    
21 Global Tokenization Market Outlook, By Large Enterprises (2020-2028) ($MN)      
22 Global Tokenization Market Outlook, By Technology (2020-2028) ($MN)       
23 Global Tokenization Market Outlook, By Natural Language Processing (NLP) (2020-2028) ($MN)    
24 Global Tokenization Market Outlook, By Machine Learning (2020-2028) ($MN)      
25 Global Tokenization Market Outlook, By Internet Of Things (Iot) (2020-2028) ($MN)      
26 Global Tokenization Market Outlook, By Cloud Computing (2020-2028) ($MN)      
27 Global Tokenization Market Outlook, By Blockchain (2020-2028) ($MN)       
28 Global Tokenization Market Outlook, By Artificial Intelligence (2020-2028) ($MN)      
29 Global Tokenization Market Outlook, By Application Area (2020-2028) ($MN)      
30 Global Tokenization Market Outlook, By Customer Data Management (2020-2028) ($MN)     
31 Global Tokenization Market Outlook, By User Authentication (2020-2028) ($MN)      
32 Global Tokenization Market Outlook, By Payment Security (2020-2028) ($MN)      
33 Global Tokenization Market Outlook, By Encryption (2020-2028) ($MN)       
34 Global Tokenization Market Outlook, By Compliance Management (2020-2028) ($MN)     
35 Global Tokenization Market Outlook, By Application (2020-2028) ($MN)       
36 Global Tokenization Market Outlook, By Supermarkets/Hypermarkets (2020-2028) ($MN)     
37 Global Tokenization Market Outlook, By Pharmacies (2020-2028) ($MN)       
38 Global Tokenization Market Outlook, By Online (2020-2028) ($MN)       
39 Global Tokenization Market Outlook, By Convenience Stores (2020-2028) ($MN)      
40 Global Tokenization Market Outlook, By End User (2020-2028) ($MN)       
41 Global Tokenization Market Outlook, By Retail & eCommerce (2020-2028) ($MN)      
42 Global Tokenization Market Outlook, By Automotive & Transportation (2020-2028) ($MN)     
43 Global Tokenization Market Outlook, By Manufacturing (2020-2028) ($MN)      
44 Global Tokenization Market Outlook, By IT & Telecommunications (2020-2028) ($MN)     
45 Global Tokenization Market Outlook, By Hospitality (2020-2028) ($MN)       
46 Global Tokenization Market Outlook, By Government and Public Sector (2020-2028) ($MN)     
47 Global Tokenization Market Outlook, By Energy & Utilities (2020-2028) ($MN)      
48 Global Tokenization Market Outlook, By Healthcare and Life Sciences (2020-2028) ($MN)     
49 Global Tokenization Market Outlook, By Commercial (2020-2028) ($MN)       
50 Global Tokenization Market Outlook, By Banking, Financial Services, and Insurance (BFSI) (2020-2028) ($MN)   
51 Global Tokenization Market Outlook, By Education (2020-2028) ($MN)       
52 Global Tokenization Market Outlook, By Aerospace and Defense (2020-2028) ($MN)     
53 Global Tokenization Market Outlook, By Media and Entertainment (2020-2028) ($MN)     
              
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
              
              

 

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