In terms of revenue, the global tokenization market was valued at US$ 1159.5 million in 2019 and is projected to reach US$ 6823.7 million by 2027; it is expected to grow at a CAGR of 25.7% during the forecast period. Tokenization solutions are often used for credit card processing. The payment card industry (PCI) council defines tokenization as a process wherein the primary account number (PAN) is replaced with an alternate/surrogate value known as a token. The key factor attributed to the growth of the global tokenization market is the growing data security concerns among the data-sensitive organizations across the world. The tokenization market is anticipated to witness a noteworthy growth owing to a huge number of financial firms opting for enhanced security in payment processing systems. Additionally, with the rising incidences of credit card fraudulent activities, there is an increase in the demand for payment security.
The tokenization market is segmented into component, enterprise size, deployment, and industry vertical. Based on component, the tokenization market is segmented into solutions and services (managed/outsourced services, professional services). Tokenization solutions involve payment security, customer data management, omnichannel management, compliance & policy management, and encryption. Based on enterprise size, the tokenization market is bifurcated into SMEs and large enterprises. Based on industry vertical, the tokenization market is segmented into BFSI, retail, healthcare, government, IT & telecom, and others.
Broadcom Inc.; CipherCloud; Fiserv, Inc; First Data Corporation; TokenEx; Micro Focus International plc; OpenText Corporation; Visa Inc.; Sequent Software Inc.; and Thales Group are among the key players profiled in the tokenization market report.
Impact of COVID-19 Pandemic on Tokenization Market
The COVID-19 epidemic is changing the functioning of businesses worldwide. The worldwide payments ecosystem has proven strong in the face of the epidemic, as the general population endures to trust payments systems as well as providers. Considering this factor, there were no considerable interruptions of fundamental infrastructure in the payment ecosystem. Nevertheless, the payment industry is far from unaffected to the impacts of the crisis. The major changes for payment providers attributed to the epidemic comprise a surge in non-performing loans, a decline in revenues and greater demand on client service teams. Total payment amounts have contracted owing to the decline in consumption as well as trade.
Overall size of the tokenization market is derived using primary and secondary sources. The research process begins with extensive secondary research using internal and external sources to obtain qualitative and quantitative information related to the tokenization market. It also provides the overview and forecast for the global tokenization market based on all segmentation provided concerning five primary reasons such as North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate and analyze the data. The participants who take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specialized in the tokenization market.