The global tokenization market is expected to grow with the CAGR of approximately 22.6% during the forecast period (2016-2023). The factors that are driving the market growth are increasing awareness regarding cloud-based solutions, increasing threat of security breaches, increasing adoption of contactless payment solutions such as credit card/debit card and application of tokenization across various verticals such as healthcare & BFSI. In healthcare sector, the threat of ransomware is constantly rising which creates problems for the healthcare industry. The healthcare organizations receive and store large amounts of PII (personally identifiable information) and payment card information (PCI) for patients for billing purpose. Much of the PCI and PII data remains unprotected and sometimes not even encrypted; shifting in the ERP database systems and also being transmitted among clinics, labs, hospitals and private practices.
The cybercriminal attacks in healthcare sector for hacking billing activities and patient information are rapidly increasing and currently it is the major cause of data breach. With the use of cloud tokenization platform, none valuable payment, PII or PHI data is accepted, stored, and transmitted by the organization’s IT systems. It converts the whole payment process into token numbers which is not useful for cybercrimes. Thus, tokenization has a major role in healthcare sector and likewise, this technology plays also major role in various major sectors such as BFSI, retail to maintain transaction security which as a result leads tokenization market. However, vulnerability from EMV (Europay, MasterCard? and Visa?) standards, lack of common standards for tokenization is acting as major restraining factors for the market growth. Increasing demand for payment security in e-commerce industry and growth of tokenization-as-a-service model is expected to create good opportunity for the market growth. The market is facing certain challenges such as budgetary constraints and lack of skilled professionals.
Geographically, North America is leading the tokenization market, in terms of revenue as increasing cyber threat in the region. The presence of major players such as Hewlett-Packard Enterprise, IBM Corporation, Oracle Corporation, Symantec Corporation, 3Delta Systems, Inc. and Others are creating opportunity for large innovations in tokenization market.
The global tokenization market is further categorized into application, organization size, deployment type, component and vertical. The application segment is further sub-segmented into User Authentication, Payment Security and Compliance Management. The organization size is further sub-segmented into Large enterprises and Small & medium enterprises. The deployment type is further sub-segmented into On-premises and Cloud-based. The component is further sub-segmented into Solutions and Services. The vertical is further sub-segmented into Retail, Government, Education, Energy & Utilities, BFSI, Healthcare, IT & Telecom, Automotive and Other verticals.