Tokenization Market to Experience Robust Growth at a CAGR of 21.3% during the Forecast Period, Reaching US$ 18.50 Billion by 2032
COVINA, Calif., May 24, 2023 /PRNewswire/ -- According to Prophecy Market Insights "Tokenization Market, By Component, By Application Area, By Deployment Mode, By End-User- Trends, Analysis and Forecast till 2030"
What is Tokenization Market?
Tokenization is the process in which sensitive data such as credit card number is replaced by value called as "token". Tokenization allows to pay securely and enable future transactions without exposing any card details. Financial statements, bank accounts, criminal records, medical records, stock traders, loan application are some examples of Tokenization Market.
Increasing deployment of cloud-based solutions, coupled with high use of contactless payment cards and increasing cyber-attacks in the countries has provided lucrative opportunities in target market growth. Management of sensitive data, coupled with growing e-commerce sector, stringent compliance, and digitization in various sectors such as banking, healthcare, financial are another factor expected to propel growth of the Tokenization Market.
What are the Recent Key Highlights of Tokenization Market?
- In October 2021, Visa launched new India's first CoF (card-on-file) tokenization services in India with new guidelines issued by RBI (Reserve Bank of India). New tokenization services has been launched in partnership Bigbasket, Grofers and MakeMyTrip.
- In October 2021, NPCI (National Payments Corporation of India) launched new "NPCI Tokenization System" (NTS) to support tokenization of RuPay cards to enhance safety of consumers.
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- 2032 Updated Report Introduction, Overview, and In-depth industry analysis.
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- 2023 Updated Regional Analysis with Graphical Representation of Size, Share & Trends.
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Updated Report Includes Top Market Players with their Business Strategy, Sales Volume, and Revenue Analysis.
Who are the Top Key players operating in the Tokenization Market?
- Liaison Technologies
- Futurex Inc
- Paymetric, Inc
- TokenEx, LLC
- Hewlett Packard Enterprise Development LP
- Symantec Corp.
- Gemalto NV
- Fiserv, Inc.
- First Data Corp
- CardConnect Corp.
Base year for estimation
2023 – 2032
Revenue in USD Million & CAGR from 2022 – 2032
Accounted in 2022
US$ 2.74 Billion
Estimated to be in 2032
US$ 18.50 Billion
By Component-Solution, Service, Professional Services, Consulting, Integration Services, Training and Education, Support and Maintenance, and Managed Services.
By Application Area-Payment Security, User Authentication, and Compliance Management.
By Deployment Mode-On-Premises and Cloud.
By Organization Size-Small and Medium-Sized Enterprises and Large Enterprises.
By End-User-Banking, Financial Services, and Insurance, Government, Retail, Healthcare, Telecom and IT, and Others.
North America - U.S., Canada
Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe
Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific
Latin America - Brazil, Mexico, Argentina, Rest of Latin America
Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Revenue forecast, company share, competitive landscape, growth factors, and trends
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What is Prophecy's Analyst View on Tokenization Market?
Adoption of digital technologies and rising adoption of online-based payment solutions has contributed in market growth. Growing interest of cloud computing security in rising ultimatums of credit and debit card fraud and data breaches, public sectors are expected to boost the demand for Tokenization market growth over the forecast period.
What are the primary benefits of implementing tokenization?
- Enhanced Data Security: Tokenization replaces sensitive data, such as credit card numbers or personally identifiable information (PII), with unique tokens.
- Compliance with Data Protection Regulations: Tokenization helps organizations achieve compliance with data protection regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). By replacing sensitive data with tokens, organizations minimize the storage and processing of sensitive information, reducing the scope of compliance requirements.
- Simplified Payment Processing: In the context of payment transactions, tokenization streamlines the payment process by replacing cardholder data with tokens.
- Reduced Risk of Fraud: Tokenization significantly reduces the risk of fraud, as tokens are randomly generated and not mathematically reversible. Even if tokens are intercepted, they hold no value or sensitive information, making them useless for malicious purposes.
- Seamless Customer Experience: Tokenization enables a seamless customer experience by allowing recurring payments and easy transaction processing without the need for customers to re-enter their sensitive data.
- Cost Savings: By implementing tokenization solutions, organizations can potentially reduce costs associated with data storage, security measures, and compliance efforts. Tokenization eliminates the need to store and secure large volumes of sensitive data, reducing infrastructure and operational costs.
- Flexibility and Scalability: Tokenization solutions can be implemented across various systems, platforms, and industries, making them highly flexible and scalable.
What are the future trends and innovations in the tokenization market?
- Expansion of tokenization beyond payments to areas such as identity management, supply chain management, and IoT devices.
- Increased adoption of blockchain technology, which provides a secure and decentralized framework for tokenization.
- Integration of tokenization with emerging technologies like artificial intelligence (AI) and machine learning (ML) for advanced data protection and fraud detection.
- Development of industry-specific tokenization standards and protocols to ensure interoperability and seamless integration across different sectors.
- Evolution of tokenization techniques to support the tokenization of non-fungible assets, such as digital collectibles and intellectual property rights.
- Enhanced tokenization solutions with multi-factor authentication and biometric technologies for stronger security measures.
- Advancements in tokenization infrastructure, including the use of hardware security modules (HSMs) and trusted execution environments (TEEs), to bolster data protection.
- Growing focus on privacy-enhancing tokenization methods that allow individuals to maintain control over their personal data while benefiting from tokenization benefits.
- Integration of tokenization with decentralized finance (DeFi) platforms, enabling secure and transparent tokenized financial transactions.
- Continued collaboration between industry stakeholders, including technology providers, regulators, and standardization bodies, to establish best practices and guidelines for tokenization implementation.
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What are the Drivers of the Tokenization Market?
- Increasing data breaches and cybersecurity threats
- Stringent data privacy regulations
- Growing digital payments landscape
- Increased adoption of cloud computing
- Demand for seamless user experience
- Expansion of the Internet of Things (IoT)
- Advancements in blockchain technology
- Focus on fraud prevention and risk mitigation
These drivers collectively contribute to the growth and adoption of tokenization solutions in various industries.
What are the Restrains of the Tokenization Market?
- Limited adoption awareness
- Integration complexity
- Cost of implementation
- Compliance and regulatory considerations
- Potential interoperability issues with different tokenization solutions
- Dependence on third-party tokenization service providers
- Limited standardization and interoperability across industries
- Emerging competition from alternative solutions such as encryption and biometrics.
These restraints and challenges may slow down the adoption and growth of tokenization solutions and may require innovative solutions and collaborations among stakeholders to address them effectively.
What are the Opportunities in the Tokenization Market?
- The tokenization market offers significant opportunities for businesses across sectors.
- Increasing demand for data security drives the need for tokenization solutions.
- Compliance with data privacy regulations can be achieved through tokenization.
- E-commerce and mobile payments provide a prime opportunity to enhance transaction security and customer trust.
- The expansion of the Internet of Things (IoT) creates opportunities for secure communication and data exchange using tokenization.
- Adoption of tokenization in the financial services sector improves security in payments and enables new financial products.
- Integration with emerging technologies like blockchain and AI enhances tokenization capabilities.
- Tokenization has cross-industry applications, catering to sectors such as healthcare, retail, and logistics.
- Partnerships and collaborations drive innovation and the development of comprehensive tokenization solutions.
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In conclusion, the tokenization market is driven by increasing data breaches, stringent regulations, digital payments growth, and IoT expansion. However, challenges such as limited awareness, integration complexity, implementation costs, and compliance considerations pose restraints. Despite these challenges, tokenization offers significant potential for data security and streamlined transactions. With industry collaboration and innovation, the tokenization market is poised for growth, enabling businesses to protect sensitive data and build customer trust in the digital landscape.
Key questions answered in this report:
- What is tokenization and how does it work?
- What are the primary drivers and growth prospects of the tokenization market?
- What industries can benefit from tokenization, and what are the specific use cases within those industries?
- What are the key security features and benefits of tokenization compared to other data protection methods?
- How does tokenization support regulatory compliance, such as GDPR and CCPA?
- What are the challenges and considerations organizations should be aware of when implementing tokenization solutions?
- What are the emerging trends and innovations shaping the tokenization market?
- What are the potential risks and vulnerabilities associated with tokenization, and how can they be mitigated?
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