The growing concern over increased credit and debit card frauds is driving the tokenization market
The tokenization market size is expected to grow from USD 823.0 million in 2017 to USD 2,258.6 million by 2022, at a Compound Annual Growth Rate (CAGR) of 22.4%. Payment security and compliance management are among the application areas contributing to the growth of the tokenization market.
Payment security application area is expected to have the largest market size in the tokenization market
The payment security application area is projected to contribute the largest market share during the forecast period. Due to increased complexities in the payment transactions across the globe and the challenges of managing the sensitive information of users, payment security has become a major point of concern for organizations.
Cloud deployment is expected to have the largest market size in the tokenization market
Cloud deployment is the fastest-growing deployment mode in the tokenization market and is expected to hold the larger market size from 2017 to 2022. SMEs, in particular, have implemented cloud deployment as it enables them to focus on their core competencies, rather than investing their capital on payment infrastructure. Organizations can avoid costs related to hardware, software, storage, and technical staff by using cloud-based solutions. Security of the consumer's sensitive data is the biggest priority as it is the primary target of the attackers. The cloud-based platform offers a unified way in the form of SaaS-based tokenization services to secure the payment data and help organizations comply with PCI DSS and HIPAA, which is beneficial for organizations that have strict budgets for security investments.
North America is expected to have the largest market size in the tokenization market
Due to the presence of a large number of tokenization vendors, North America is expected to have the largest market size in the tokenization market; whereas, Asia-Pacific (APAC) is expected to be the fastest-growing region during the forecast period. Factors, such as increasing Internet usage, compliance regulation, and increased need for payment security in growing eCommerce are major factors for the adoption of tokenization solutions. Furthermore, the market in developing regions, such as the Middle East and Africa (MEA) and Latin America is expected to grow due to the increasing usage of mobility, cloud computing, expanding retail and banking sector, and government regulatory compliances.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people. The break-up of the profile of primary participants is as follows:
• By Company: Tier 1 – 38 %, Tier 2 – 42%, and Tier 3 – 20%
• By Designation: C level – 55% and Director level – 45%
• By Region: North America – 52%, Europe – 26%, APAC – 16%, and RoW – 6%
The various key tokenization vendors profiled in the report are Hewlett-Packard Enterprises (US), Symantec Corporation (US), Gemalto NV (the Netherlands), Fiserv, Inc. (US), First Data Corporation (US), CardConnect Corp. (US), Thales e-Security (US), 3Delta Systems (US), CipherCloud (US), CyberSource (US), Liaison Technologies (US), Protegrity USA, Inc. (US), Futurex (US), Paymetric, Inc. (US), and TokenEx LLC (US).
The research covers the tokenization market on the basis of different segments such as solutions, services, application areas, deployment modes, organization sizes, and verticals in the geographies of North America, Europe, APAC, MEA, and Latin America. Aditionally, it includes the factors that are driving the tokenization market along with the growth opportunities in this market. It also includes the restraining factors and challenges in the growth of tokenization market. Moreover, the report includes the detailed company profiles of the key players offering tokenization solution and services.
The report will help the market leaders/new entrants in this market in the following ways:
1. This report segments the tokenization market comprehensively and provides the closest approximations of the revenue numbers for the overall market and the subsegments across different regions.
2. The report helps stakeholders understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.
3. This report helps stakeholders to understand the competitors better and gain more insights to improve their positions in the business. The competitive landscape section includes competitor ecosystem, new product developments, partnerships, and mergers and acquisitions.