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Tokenization Market

Market Insights on Tokenization covering sales outlook, demand forecast & up-to-date key trends

Tokenization Market : Global Industry Analysis 2016 - 2020 and Opportunity Assessment 2021 - 2031

Tokenization Market Overview

Tokenization market is set to witness steady growth during 2021-2031. One of the major growth drivers for the tokenization happen to be increasing need to adhere to compliances and regulations.

Additionally, the mounting need to preserve fraud prevention levels due to increased financial crimes is further responsible for driving the market growth.

Moreover, increasing demand for contactless payments from customers coupled with growing need for cloud-based tokenization solutions and services are anticipated to offer rewarding prospects for the major players operating in the market.

What is Driving Demand for Tokenization?

Tokenization makes use of a token to protect the data, whereas encryption utilizes a key. Tokenization switches the sensitive data for a non-sensitive token and stores the original data securely.

Owing to this, there has been rise in demand for implementation of tokenization techniques over the forecast period. Moreover, increasing inclination of consumers towards contactless payment solutions is one of the major factors responsible for driving the growth of tokenization market across the globe.

Furthermore, stringent rules and regulations enforced the governments is further driving the market growth. The rising need for enterprises to adhere to the stringent regulations happens to be one of the major factors boosting the demand for tokenization across different industry verticals.

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BFSI is Expected to Hold the Largest Share of the Tokenization Market by Vertical

On the basis of vertical, the sensor market has been bifurcated in to BFSI, healthcare, IT and telecom, government, retail and eCommerce, energy and utilities, and others.

Out of which, the BFSI industry vertical is expected to hold the largest share of the global market. Tokenization solutions have gained immense popularity and a higher rate of adoption in the BFSI vertical, as it deals with money. The vertical displays a large number of financial transactions, which become an attractive target for cybercriminals. Increasing fraudulent activities emerging in the BFSI vertical is another major factor driving the demand for tokenization.

US and Canada Tokenization Demand Outlook

U.S. happens to be one of the largest markets for tokenization across the globe. The growth in U.S. is attributed to the presence of established players such as Fiserv, Mastercard, Visa, Micro Focus, and American Express, among others in the region. Moreover, US happens to be a highly regulated region with the presence of regulations such as CCPA.

Changing customer preferences towards the adoption of digital first credit cards and contactless cards are also projected to boost the growth of tokenization in the North America region.

Increasing implementation of cloud-based tokenization solutions and services is another major factor driving the market growth across the globe. The other factors stimulating the market growth in the region include the rising demand for eCommerce and increasing use of smartphones for online payments, among others.

Nikhil Kaitwade
Principal Consultant
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Europe Demand Outlook for Tokenization

Contactless payments are helping end users as well as organizations move further away from wire transfer services, which happens to be one of the most exploited medium for cyber attackers.

Contactless payments are typically gaining more traction in the Europe region. According to a report published by Gemalto, 90% of the business frontrunners in Europe are already investing in the contactless payment solutions. Intensifying data breaches and financial frauds happen to be one of the major factors driving the demand for tokenization in the Europe region.

Who are the Key Manufacturers and Suppliers of Tokenization?

Some of the leading providers of tokenization include

  • Fiserv
  • Mastercard
  • Visa
  • Micro Focus
  • American Express
  • HelpSystems
  • MeaWallet
  • Thales TCT
  • CipherCloud
  • Futurex
  • TokenEx
  • nCipher
  • VeriFone
  • Bluefin Payment Systems
  • Marqeta, Paragon Payment Solutions
  • IntegraPay
  • AsiaPay
  • Liaison Technologies
  • Ingenico Payments
  • Sygnum
  • HST
  • cardlink
  • Sequent Software
  • Shift4Payments, among others.

The major companies operating in the market are focused on new product launches and business expansion strategies in order to enhance their product portfolio and expand their presence in the market.

For instance, In July 2020, BOB Financial Solutions Limited, a subsidiary of Bank of Baroda, has chosen Fiserv in order to enable digital transformation in its processes. The company aims to digitize their processing cycle and the process of card issuance and further support the launch of numerous new and high-tech products launched by the bank.

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.

The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

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Key Segments

By Component:

  • Solutions
  • Services
    • Professional Services
    • Managed Services

By Application:

  • Payment Security
  • User Authentication
  • Compliance Management

By Tokenization Technique:

  • API-Based
  • Gateway-Based

By Deployment:

  • Cloud
  • On-premise

By Organization Size:

  • SMEs
  • Large Enterprises

By Vertical:

  • BFSI
  • Healthcare
  • IT and Telecom
  • Government
  • Retail
  • Energy and Utilities
  • Others

By Region:

  • North America
    • US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • UK
    • France
    • Germany
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • East Asia
    • China
    • Japan
    • South Korea
  • South Asia & Pacific
    • India
    • Thailand
    • Indonesia
    • Malaysia
    • Australia & New Zealand
    • Rest of South Asia & Pacific
  • Middle East & Africa
    • GCC Countries
    • Turkey
    • South Africa
    • Rest of Middle East and Africa 
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Nikhil Kaitwade
Principal Consultant
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