Published: Dec, 2018

According to a new market report published by Transparency Market Research , the global tokenization market was valued at US$ 1,267.8 Mn in 2016 and is estimated to expand at a compound annual growth rate of 18.6% from 2018 to 2026, reaching US$ 6,901.1 Mn by the end of the forecast period. According to the report, North America was the largest contributor in terms of revenue to the tokenization market in 2016. This is primarily due to strong technological advancement and considerable application of tokenization in banks and financial institutions across the region

global tokenization market

Request a Sample - https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=27287

Need for payment card industry data security standard (PCI-DSS) compliance to secure cardholder data driving the global tokenization market

PCI DSS guidelines state that merchants and companies that process and store credit card data must fulfill precise audit requirements for managing cardholder data and privacy. Tokenization, a method of replacing sensitive data such as credit and debit card numbers with tokens, is one of the audit scope reduction and data protection methods that is recommended/suggested by PCI DSS. Tokenization helps merchants to comply with the global PCI-DSS and assists payment processors to keep cardholders’ data secure. This in turn is expected to drive the tokenization market during the forecast period.

Tokenization Market: Scope of the Report

The global market for tokenization is segmented on the basis of component, solution, enterprise size, end-use, and geographic regions. Based on component, the market has segmented into software, hardware, and services. Hardware component accounts for the largest share in terms of revenue in the global tokenization market. Hardware component used for tokenization are hardware security module (HSM) and other tokenization appliances which are used for interaction with HSM. Hardware devices are generally used in vault-based tokenization where sensitive data is stored within the user’s premises. However, service (tokenization-as-a-service) segment is expected to expand at the highest CAGR of around 19.8% globally during the forecast period. Based on solution, the market has been segmented into payment security, customer data management, compliance & policy management, omni-channel management, and encryption. On the basis of enterprise size, the market has been divided into small & medium enterprise and large enterprise. In terms of end-use, the market has been bifurcated into BFSI, retail & consumer goods, government, education, military & defense, automotive, IT & telecom, energy & utilities, manufacturing, and others (hospitality & transportation).

Based on geography, the global tokenization market has been segregated into North America, Asia Pacific, Europe, South America, and Middle East & Africa. North America led the global tokenization market with a substantial share in 2016, primarily due to rising deployment of tokenization solutions for various applications such as payment security and customer data management across organizations operating in North America, particularly in the U.S. which has given impetus to the tokenization market.

Asia Pacific is anticipated to witness highest growth in terms of adoption of tokenization solutions during the forecast period. This is primarily due to the rising adoption of digital services such as Internet of Things (IoT), cloud, mobility, and Artificial Intelligence, leading to the rising trend of high amount of data from the APAC region.

Global Tokenization Market: Competitive Dynamics

Tokenization solution providers are expanding their product portfolio through mergers and acquisitions, which provide them a larger customer base with an enhanced and comprehensive suite of hardware and software. Companies are also focusing on winning long-term contracts and providing multi-service platforms to their customers. 

The global tokenization market includes different players such as Gemalto NV, Futurex, Thales e-Security, Inc., CipherCloud, Inc., Symantec Corporation, Hewlett Packard Enterprise Development L.P., Protegrity USA, Inc., TokenEx, First Data Corporation, and CyberSource Corporation

The tokenization market has been segmented as below:

Market Segmentation: Global Tokenization Market

By Component

  • Hardware
  • Software
    • Cloud-based
    • On-premise
  • Services
    • Managed/Outsourced
    • Professional

By Solution

  • Payment Security
  • Customer Data Management
  • Compliance & Policy Management
  • Encryption

By Enterprise Size

  • Small & Medium Enterprise
  • Large Enterprise

By End-use

  • BFSI
  • Retail & consumer Goods
  • Government
  • Education
  • Military & Defense
  • Automotive
  • IT & Telecom
  • Energy & Utilities
  • Manufacturing
  • Others (Hospitality & Transportation)

In addition, the report provides analysis of the tokenization market with respect to the following geographic segments:

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • India
    • Japan
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA
  • South America
    • Brazil
    • Rest of South America

About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

Contact

90 State Street, Suite 700

Albany, NY 12207

Tel: +1-518-618-1030

USA - Canada Toll Free: 866-552-3453

Email: sales@transparencymarketresearch.com

Website: https://www.transparencymarketresearch.com

.