The overall tokenization market worldwide was valued at US$ 880.9 Mn in 2018 and is set to grow with a CAGR of 18.9% during the forecast period.
Market Insights
Robust need of protecting crucial data information from disclosure, is the major growth driving factor for tokenization market. Replacing data with unique identification symbols which hold all the necessary information for the data is called as tokenization. To protect sensitive data information from fraud, the tokenization system has been used nowadays. Tokenization has various benefits such as gives protection from hackers and thieves, reduced PCI scope, provide online protection, and internal protection among others. Increase of data breach and cyber-attacks worldwide are the other major drivers for the increased demand of tokenization. On account of wide application of tokenization in financial sector, the market is showing huge demand. Therefore, we expect that the tokenization market will show robust growth throughout the forecast period.
Based on application, the tokenization market is led by BFSI (banking, financial services and insurance) segment in 2018. The BFSI segment has around 25% of the revenue share in the same year. While payment at various shopping stores, tokenization exempts merchants to keep client’s data in their systems. Growing cash less transactions worldwide is the major growth factor for the segment. According to World Payments Report (WPR), the cash less transactions volumes are valued at US$ 482.6 Bn in 2016 and growing with around 10% annually. Further, for the security of client’s privileged information banks, financial services and insurance companies are adopting tokenization. As a result, we expect that the BFSI segment will show substantial growth during the forecast period.
Based on the geography, North America was the largest region in 2018 for tokenization market backed by Europe and Asia Pacific. North America has over 35% value contribution in the same year. North America has highest share owing to early adoption and penetration of tokenization system. In North America tokenization is widely being used in various industries such as BFSI, retail, defense, healthcare and others. Strict government regulatory compliance and growth in payment security concerns in the region, are the other major growth factors. Therefore, we expect that the North America will show stagnant growth during throughout the forecast period from 2019-2027.
BFSI will led the Market
The BFSI (banking, financial services and insurance) segment leads the tokenization market by application in 2018. In the same year, the BFSI segment accounts for nearly 25% of the revenue share. The global banking and capital market industry have US$ 123.7 Tn worth of assets in 2017. To prevent client’s data from disclosure, to prevent credit card fraud, and other deceptions the tokenization system is widely adopted by banks, financial services organizations and insurance companies. As a result, we are expecting significant growth in the BFSI segment during the forecast period.
Asia Pacific will be the Fastest Growing
North America leads the tokenization market in 2018 followed by Europe and Asia Pacific. North America has 1/3rd of the revenue share in the same year. Technological advancements and adoption of tokenization are the major growth factors for the market. We expect that Asia Pacific will be the fastest growing region in the tokenization market during the forecast period. Growth of BFSI industry and rising cash less transactions in the region are the major factors for the growth of Asia Pacific. Consequently, we expect that the Asia Pacific region will be the fastest growing region in the tokenization market throughout the forecast period.
Some of the prominent players operating in the tokenization market First Data Corporation, Gemalto, Fiserv, Inc., Micro Focus, Symantec Corporation, Thales e-Security, Inc., Visa Inc., WEX Inc., Worldpay Group plc, CipherCloud , Liaison Technologies, Inc., Protegrity USA, Inc., TokenEx, Bluefin, Mastercard Incorporated, Ingenico, Discover Financial Services among others.
Get Sample Copy Here: https://www.credenceresearch.com/sample-request/59958
