Tokenization Market Scope, Size & Global Forecasts to 2027

Tokenization Market Forecast to 2027 - Covid-19 Impact and Global Analysis by Component (Solution and Services), Deployment (Cloud and On-premise), Enterprise Size (SMEs, and Large Enterprises), Industry Vertical (BFSI, Retail, IT & Telecom, Healthcare, Government, and Others), and Geography

Publication Month : Jul 2020

  • Report Code : TIPRE00003042
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 202
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The tokenization market expected to grow from US$ 1378.8 million in 2020 to US$ 6823.7 million by 2027; it is estimated to grow at a CAGR of 25.7% from 2020 to 2027.

Growing trend toward contactless payment solutions is attributing to the growth of the market. Contactless payment using RFID technology or near-field communication (NFC) is a safe mode of payment to purchase products or services using credit, debit, or smartcard. Using a contactless mode of payment is advantageous for both businesses and customers. Although, Europay, MasterCard and Visa (EVM) chip technology is time-consuming, the contactless payment method removes the friction and helps the customer to get a better shopping experience. Compared to other modes of payments, the chip technology used in contactless payments is more secure, which in turn reduces the fraud cases.

NFC technology allows cards and terminals to connect when the card is brought into proximity to the terminal. The advent of EMV enables the same technology to be used for protected contactless payments. Additionally, the use of mobile wallets is witnessing high growth, particularly in developing economies.

The vitality of technology is tested through its capability to integrate with existing technologies. Tokenization smoothly integrates NFC for contactless payment technology. With card details being tokenized, it is expected that innovative NFC mobile apps for payments will be introduced. Thus, providing opportunities to the players operating in the tokenization market

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. The general population endures to trust payments systems as well as providers, and no considerable interruptions of fundamental infrastructure have been reported. Nevertheless, the payment industry is far from resistant to the impacts of the crisis. The major changes for payments 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.

In the short term, this change is expected to push payments providers to make changes in operating model, likely prioritizing greater flexibility, as well as new short-term goals. However, the long-term impacts of the epidemic on global payments are expected to be even greater. Some of the major changes that are anticipated to take place include robust thrust towards cashless society, need for innovative fraud protection tools and solutions, a stricter environment for payments fintechs, digital innovation, as well as growth for tokenized mobile wallets.

Lucrative Regions in Tokenization Market


Lucrative Regions in Tokenization Market
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Market Insights–Tokenization Market

Increased Implementation for Cloud-Based Tokenization Solutions Amongst SMEs

The cloud-based tokenization is highly advantageous, as they safeguard the data from external as well as internal factors. It is decrypted only by the payment processor, which results in decreasing the chances of fraud as well as other security threats. Additionally, it is extremely advantageous for the merchants as they do not have to uses several resources to build secure payment infrastructure. They can be applied to any PII such as usernames, passwords, and patient records. It is anticipated that the installation of cloud-based tokenization solutions will gain immense traction, particularly from SMEs in coming days. The adoption of cloud-based solutions by SMEs across the world is increasing owing to cost-benefits delivered by cloud infrastructure.

Component-Based Insights

Based on component, the tokenization market is segmented into solution and services. The solutions segments held the largest market share in 2019.

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Tokenization Market: Strategic Insights

tokenization-market
Market Size Value inUS$ 1378.8 Million in 2020
Market Size Value byUS$ 6823.7 Million by 2027
Growth rateCAGR of 25.7% from 2020-2027
Forecast Period2020-2027
Base Year2020
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Players operating in the tokenization market are mainly focused on the development of advanced and efficient products.

  • In 2020, TDC, Futurex launched the Post-Quantum Hybrid certificate authority solution, which incorporates certificate lifecycle management in a FIPS 140-2 Level 3-validated hardware security module (HSM). This module is a secure solution for businesses. Whether it is public key infrastructure and vaultless tokenization, the company’s KMES brings full-spectrum key management into a single device.
  • In 2019, Thales added new competencies for its Vormetric Application Crypto Suite. The added capabilities enable enterprises to easily implement application-layer data protection. Through the Vormetric Application Crypto Suite, clients are capable to streamline the effort to add tokenization, encryption, masking, and other cryptographic functions to their applications.

The tokenization market has been segmented as follows:


Tokenization Market – by Component

  • Solution
  • Services

Tokenization Market – by Deployment

  • Cloud
  • On-Premises

Tokenization Market – by Enterprise Size                                              

  • SMEs
  • Large Enterprises

Tokenization Market – by Industry Vertical                                           

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

Tokenization Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • Russia
    • U.K
    • Rest of Europe
  • Asia Pacific (APAC)

    • Japan
    • China
    • Australia
    • India
    • Rest of APAC
  • Middle East and Africa (MEA)

    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM

Tokenization Market – Company Profiles

  • Broadcom, Inc
  • CipherCloud, Inc.
  • FUTUREX
  • Fiserv, Inc.
  • Micro Focus International plc
  • OpenText Corporation
  • Sequent Software Inc
  • TokenEx
  • Thales Group
  • Visa, Inc.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Component , Deployment , Enterprise Size , Industry Vertical , and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

The List of companies - Global Tokenization Market

  1. Broadcom, Inc.
  2. CipherCloud, Inc.
  3. FUTUREX
  4. Fiserv, Inc.
  5. Micro Focus International plc
  6. OpenText Corporation
  7. Sequent Software Inc.
  8. TokenEx
  9. Thales Group
  10. Visa, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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