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Tokenization Market 2020 Global Leaders Analysis - CipherCloud, Liaison Technologies, Fiserv, Symantec, Gemalto NV, CardConnect, CyberSource, Protegrity USA
Market Research Future published a research report on "Global Tokenization Market Research Report- Forecast 2023" - Market Analysis, Scope, Stake, Progress, Trends and Forecast to 2023.Market Synopsis:
Tokenization is the new buzz word in the payment system at the moment. It is the process of adding an extra level of security to sensitive payment data - typically payment card or bank account numbers, with an algorithmically generated number called a token in the same format. Unlike encryption, tokenization is undecipherable. Tokenization provides high-level security to enterprises as they cannot be decrypted. There is no mathematical relationship between the token and its original number. Moreover, a token is used for one time only and are not retained. Tokenization has become a popular method of bolstering the security of payment transactions, and the global tokenization market is expected to expand at a stellar CAGR of 24.14% over the forecast period of 2017-2023, affirms Market Research Future (MRFR) in an in-depth study.
The requirement to comply with the set of data security standards set by the payment card industry also a key factor in motivating the growth of the global tokenization market. Adoption of tokenization solutions ensuring compliance with the PCI-DSS regulations and help reduce compliance burden due to which tokenization solutions are progressively being adopted by enterprises.
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The towering occurrence of cyber-attacks, cybersecurity regulations and pressing need to secure payment systems against connected device vulnerabilities have encouraged financial firms to opt for payment secu8rity solutions which induce high demand within the global tokenization market.
Rising deployment of tokenization by SMEs due to increasing stringency of regulatory norms relating to payment frauds is likely to augment the growth of the global tokenization market further. SMEs cater to a broader population base and so are increasingly leveraging tokenization solutions which will bring tokenization to mainstream and accelerate the growth of the market.
On the other hand, the market growth might be undermined by a lack of knowledge among end users and high costs associated with tokenization solutions. In addition, the cost of hardware and software represent a significant cost to enterprises which hinders adoption of tokenization solutions among end users.
In light of the above factors, the global Tokenization Market is estimated to reach USD 2341.38 Bn by the end of 2023.
Key Players
The prominent players in the tokenization market are -Symantec Corporation (US), Gemalto NV (Netherlands), CardConnect Corp. (US), Thales e-Security, Inc. (US), CyberSource Corporation (US), 3Delta Systems, Inc.(US), CipherCloud (US), Hewlett-Packard Enterprises (US), Liaison Technologies, Inc.(US), Futurex (US), Fiserv, Inc. (US), Paymetric, Inc. (US), First Data Corporation (US), and TokenEx LLC (US), Protegrity USA, Inc. (US) among others
Market Segmentation
The global tokenization market has been segmented based on component, application area, deployment, organization size, and end user.
o By component, the global tokenization market has been segmented into professional services, integration services, solution managed services, service, consulting, support and maintenance, training and education, and others.
o By application area, the global tokenization market has been segmented into payment security, compliance management, user authentication, and others.
o By deployment, the global tokenization market has been segmented into indoor positioning system, outdoor positioning system, and others.
o By organization size, the global tokenization market has been segmented into Small and Medium-sized Enterprises (SMEs) and Large Enterprises.
o By end user, the global tokenization market has been segmented into BFSI, telecom and IT, healthcare, government & defense, industrial, commercial, retail, automotive and others.
Regional Analysis
By region, the global tokenization market has been segmented into North America, Asia Pacific (APAC), Europe, and the Rest of the World (RoW).
North America has commanded the pole position in the global tokenization market. The region is a frontrunner in the adoption of the latest technologies which coupled with the elevated level of awareness regarding cryptocurrency among end users has favored the growth of the tokenization market in the region.
Europe is the second largest market for tokenization driven by increasing incidence rate of cyber-attacks which is inducing greater demand within the tokenization market.
APAC market is expected to showcase substantial growth over the forecast period. Towering cybersecurity breaches, growing awareness among end users and an increase in the number of SMEs in the region generate considerable demand for tokenization solutions. China, India, and Japan are the key contributors to the APAC tokenization market.
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Industry Update
In February 2019, Securrency. Inc., a company dealing in financial technology products, and Vertalo, a digital asset management platform have announced a partnership to tokenize over USD 260 million in real estate assets. The partnership is claimed to have created the world's asset tokenization project to date.
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