Product Code: RP-ID-10059588 |
Published Date: 21 Mar 2025 |
Region: Global |
Category: ICT & Telecom |
Report ID: 10059588
Market Overview:
Tokenization Market Analysis by Organization Size (Small & Medium Enterprises, and Large Enterprises); by Vertical (BFSI, Healthcare, IT & Telecommunication, Energy & Utilities, Retail & E-Commerce, and Others); by Application (Payment Security, and User Authentication); and by Deployment Mode (On-Premise, and Cloud)-Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Tokenization Market Scope Report
|
Base Year |
2022 |
|
Forecast Year |
2023-2033 |
|
CAGR |
~20% |
|
Base Year Market Size (2022) |
~ USD 2.0 Billion |
|
Forecast Year Market Size (2033) |
~ USD XX.X Billion |
Global Tokenization Market Highlights Over 2023 - 2033
The global tokenization market is estimated to garner a significant revenue by the end of 2033 by growing at a CAGR of ~20% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 2.0 Billion in the year 2022. The growth of the market can be attributed to the rising number of financial frauds. For instance, the number of bank fraud cases accounted for more than 8,500 in the year 2020 across India.
GET A SAMPLE COPY OF THIS REPORT
Tokenization refers to the process of exchanging sensitive data for non-sensitive data known as "tokens" that can be used in a database or internal system without bringing it under the scope of the database or internal system. It is more than just a security technology as it helps in creating smooth payment experiences and satisfied customers. Moreover, rising digital payments is expected to boost the growth of the global tokenization market. Moreover, tokenization is used in the banking system to replace credit, debit, and prepaid card details with a unique set of characters for safe transactions. Therefore, rising digital payments are anticipated to boost the growth of the global tokenization market. As per the World Bank, the share in developing economies grew from 35 per cent in 2014 to 57 per cent in 2021 for digital payments across the globe.
Global Tokenization Market: Growth Drivers and Challenges
Growth Drivers
-
Growing Need for Reduction of Data Breaches– Tokenization is used to protect organizations from the financial impacts of data theft, and reduce the actual storage cards numbers in the payment accepting machine. Hence, it is projected to drive the growth of the global tokenization market. In the United States, there was more than 1,200 data breaches in the year 2018.
-
Increasing Smartphone Users– There are more than 6 Billions number of smartphone users in the year 2020.
-
Surging Adoption of Internet – According to the World Bank, the individuals using internet has increased from 29 per cent in 2010 to 60 per cent in 2020.
-
Rising Security Concerns Related to the Digitalization of Sensitive Data– More than 55 per cent of organizations around the world are prioritizing digital transformation in the year 2021.
Challenges
-
Complexity in the Implementation of Tokenization
-
Lack of Awareness Among People
-
Lack of Skilled Workers in Adoption Process
The global tokenization market is segmented and analyzed for demand and supply by vertical into BFSI, healthcare, IT & telecommunication, energy & utilities, retail & e-commerce, and others. Out of these, the retail & e-commerce segment is anticipated to hold the largest share over the forecast period owing to the increasing volume of transactions for online shopping. For instance, there are more than 2 Billion online shoppers around the globe in the year 2022.
Global Tokenization Market Regional Synopsis
Regionally, the global tokenization market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 on the back of growing adoption of tokenization solutions, and increasing penetration of smartphone and internet users. For instance, the percentage of the population using internet has increased from 1 per cent in 2000 to 43 per cent in 2020.
Market Segmentation
Our in-depth analysis of the global tokenization market includes the following segments:
|
By Organization Size |
|
|
By Vertical |
|
|
By Application |
|
|
By Deployment Mode |
|
Key Companies Dominating the Global Tokenization Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global tokenization market that are included in our report are Micro Focus, Fiserv, Inc., Visa Inc., Mastercard International Incorporated, American Express Company, Thales, CardConnect, FIS, Futurex, Lookout, Inc., and others.
Global Tokenization Market: Latest Developments
-
April, 2022: Fiserv, Inc., announced the complete acquisition of Finxact in order to accelerate the ability for fintechs and financial institutions for delivering differentiated digital banking experiences to their customers.
-
September, 2021: Mastercard International Incorporated announced the acquisition of Aiia in order to expand its open bank reach.
Key Reasons to Buy Our Report
-
The report covers detailed analysis comprising market share attained by each market segment and its sub-segments.
-
It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis and challenges that impact the market growth.
-
The report includes detailed company profiles of the major players dominating the market.
-
We use effective research methodologies to calculate the market numbers and provide value-added assessment for overall growth.
-
We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal.
- Micro Focus
- Fiserv Inc.
- Visa Inc.
- Mastercard International Incorporated
- American Express Company
- Thales
- CardConnect
- FIS
- Futurex
- Lookout Inc.
Related Reports
Proof of Quality & Reliability
