Global Tokenization Market Report 2021-2026 - Pandemic Propels Payment System Ecosystem to Entirely New Levels with Tokenization & Other Approaches

DUBLIN, Jan. 18, 2022 /PRNewswire/ -- The "Tokenization - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Tokenization Market to Reach US$4.3 Billion by the Year 2026

Amid the COVID-19 crisis, the global market for Tokenization estimated at US$1.6 Billion in the year 2020, is projected to reach a revised size of US$4.3 Billion by 2026, growing at a CAGR of 18.4% over the analysis period.

Solutions, one of the segments analyzed in the report, is projected to grow at a 19.6% CAGR to reach US$3.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Services segment is readjusted to a revised 16% CAGR for the next 7-year period.

This segment currently accounts for a 35.4% share of the global Tokenization market. The Solutions segment's growth is favored by increasing deployment of tokenization solutions across SMEs as an effective approach to mitigate the risk of identity theft and payment frauds. Companies operating in the industry are increasingly opting for tokenization solutions to comply with PCI DSS regulations.

Growth in the global market is set to be driven by increasing focus on fraud prevention and payment security measures in the wake on COVID-19-induced accelerated shift towards online and contactless payments. The market is gaining from rising incident of credit card frauds and the pressing need for robust payment security that covers different components like tokenization-as-a-service and contactless payments.

The market growth is also fueled by the need to comply with stringent regulations, improve fraud prevention and deliver enhanced experience to customers. Tokenization is poised to receive a major demand stimulus from increasing uptake of contactless payments as well as rising investments in cloud-based tokenization options.

The U.S. Market is Estimated at $697.9 Million in 2021, While China is Forecast to Reach $476.3 Million by 2026

The Tokenization market in the U.S. is estimated at US$697.9 Million in the year 2021. The country currently accounts for a 38.22% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$476.3 Million in the year 2026 trailing a CAGR of 23.7% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 15.4% and 17.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.5% CAGR while Rest of European market (as defined in the study) will reach US$586.8 Million by the end of the analysis period.

North America dominates market share on account of stringent regulations like CCPA coupled with rising incident of cyber-attacks, mainly related to payment frauds. Factors such as digital first credit cards and increasing uptake of contactless cards are creating strong demand for tokenization services and solutions.

The regional market is also gaining from notable expansion of e-commerce along with extensive use of smartphones to make online payments and access several options like government services, online gaming and digital information. Growth in Asia-Pacific region is attributed to government efforts to deal with financial frauds as well as implementation of stringent regulations to improve cyber-security.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

• Impact of COVID-19 Pandemic and Looming Global Recession
• 2020 Marked as a Year of Disruption & Transformation
• As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed in 2021?
• Shift towards Digital Technologies Enhances Prospects for Security Technologies & Solutions
• Heightened Threat of Data Breaches During Pandemic Supports Tokenization Market
• Pandemic Propels Payment System Ecosystem to Entirely New Levels with Tokenization & Other Approaches
• An Introduction to Tokenization
• Objective of Tokenization
• PCI DSS and Tokenization
• Focus on Fraud Prevention & Payment Security Gives Extraordinary Thrust to Global Tokenization Market
• Surge in Online Payments & Contactless Payments Accelerate Market Growth
• Solution Segment & BFSI Vertical Sweep Tokenization Market with Majority Stake
• SMEs Segment to Exhibit Rapid Growth
• Developed Regions Lead the Global Tokenization Market
• World Brands
• Recent Market Activity

2. FOCUS ON SELECT PLAYERS (Total 190 Featured)

• American Express Company
• AsiaPay Limited
• Bluefin Payment Systems LLC
• Cardlink
• Fiserv, Inc.
• Futurex LP
• HelpSystems, LLC
• HST Campinas, SP
• IntegraPay
• Marqeta, Inc.
• Mastercard Inc.
• MeaWallet AS
• Micro Focus International plc
• Paragon Payment Solutions
• Sequent Software Inc.
• Shift4 Payments, LLC
• Sygnum Bank AG
• Thales TCT
• TokenEx, LLC
• VeriFone, Inc.
• Visa Inc.

3. MARKET TRENDS & DRIVERS

• Digital Transformation of Businesses and the Imperative Need to Ensure Security of Sensitive Data to Spur Tokenization Market
• Data Tokenization: Unlocking the Potential of Data-Based Economy
• Encryption Vs Tokenization: A Comparative Review
• Use Cases of Tokenization and Encryption
• BFSI: The Major End-Use Vertical for Tokenization Solutions
• Surge in Digital Transactions to Boost Need for Tokenization
• Rising Customer Inclination towards Contactless Payments Amidst the Pandemic Boosts Market Growth
• Is COVID-19 Scenario Making Payment Space to Bid Adieu to Cash Payments?
• Steep Rise in Fraud Attacks amid COVID-19 Predicament Marks Opportunity for Tokenization Market
• With Mobile Wallets Going Mainstream, Tokenization Comes into Play to Ensure Security of Transactions
• Retail and E-Commerce Market to Record High Adoption of Tokenization Solutions
• Advantages of Tokenization for the Rising E-commerce Space
• Pandemic Fast Forwards eCommerce Growth
• Data Tokenization Becomes Important for Government Agencies
• Tokenization Becomes Relevant Amidst Digitization of Infrastructure in Energy & Utilities
• Compliance with Strict Regulatory Guidelines Drives Enterprises to Adopt Tokenization Solutions
• Growing Proliferation of Cloud-based Solutions & Services Presents Market Opportunity
• SMEs Witness High Adoption of Tokenization Solutions
• Growing Importance of Tokenization in Natural Language Processing (NLP)
• Tokenization Emerges a Key Strategy to Improve Customer Experience and Enhance Revenue Generation
• Protection of Sensitive Application Data in DevOps Enhances Need for Tokenization
• Challenges Facing Tokenization Market

4. GLOBAL MARKET PERSPECTIVE

III. REGIONAL MARKET ANALYSIS

IV. COMPETITION

For more information about this report visit https://www.researchandmarkets.com/r/6eb4f0

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