Tokenization Market by Offering (Solutions and Services), Application (Payment Security, User Authentication, Compliance Management), Organization Size, End-use Industry (Retail, Healthcare, BFSI, Others), and Geography - Global Forecast to 2030

Tokenization Market by Offering (Solutions and Services), Application (Payment Security, User Authentication, Compliance Management), Organization Size, End-use Industry (Retail, Healthcare, BFSI, Others), and Geography - Global Forecast to 2030

The research report titled, ‘Tokenization Market by Offering (Solutions and Services), Application (Payment Security, User Authentication, Compliance Management), Organization Size, End-use Industry (Retail, Healthcare, BFSI, Others), and Geography—Global Forecast to 2030,’ provides in-depth analysis of the tokenization market across five major geographies and emphasizes on the current market trends, market sizes, market shares, recent developments, and forecasts till 2030.

The global tokenization market is expected to reach $13.23 billion by 2030, growing at a CAGR of 19.7% during the forecast period of 2023–2030.

The growth of this market is attributed to the proliferation of digital payment methods, stringent PCI DSS regulations, and increasing financial fraud in e-commerce. In addition, the growing inclination toward using payment applications across various industries is expected to offer significant opportunities for the growth of this market. However, tokenization implementation adds a layer of complexity to the IT structure, which restrains the growth of this market. Furthermore, the low awareness of online payments in rural areas challenges the market’s growth. Additionally, the rising adoption of cloud-based tokenization solutions and services is a major market trend.

Based on offering, the tokenization market is segmented into solutions and services. In 2022, the solutions segment accounted for the largest share of the tokenization market. The large market share of this segment is mainly attributed to the increasing need to ensure compliance with payment security guidelines and the growing need to ensure continuous customer experience and maintain fraud prevention levels due to increased financial crimes. Moreover, growing consumer interest in contactless payments and rising demand for cloud-based tokenization solutions are expected to provide lucrative opportunities for the market’s growth. However, the services segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the growing need for visibility among organizations for diagnosing and troubleshooting problems before they impact operations or end-user experiences.

Based on application, the tokenization market is segmented into payment security, user authentication, and compliance management. In 2022, the payment security segment accounted for the largest share of the tokenization market. The large market share of this segment is attributed to the rise in demand for advanced payment security solutions for eCommerce, the increasing use of payment applications across different industries, and the rising need to secure online business-sensitive transactions from advanced cyberattacks. However, the user authentication segment is expected to register the highest CAGR during the forecast period due to enhanced payment security processes, the need to prevent unauthorized users from accessing a device or network, the rise in cyberattacks on fintech institutes, and the increasing need to protect user payment transaction data.

Based on organization size, the tokenization market is segmented into large enterprises and small & medium-sized enterprises. In 2022, the large enterprises segment accounted for the largest share of the tokenization market. The large market share of this segment is attributed to rising concerns about creating a safe environment for customer payment transactions and the need to cater to dynamic customer trends, streamline business operations, and enhance market competitiveness. However, the small & medium-sized enterprises segment is expected to register the highest CAGR during the forecast period due to the rising adoption of payment security solutions among SMEs to modernize their businesses and provide customers with seamless & secure digital solutions.

Based on end-use industry, the tokenization market is segmented into BFSI, retail, travel & hospitality, healthcare, telecommunications, media & entertainment, and others. In 2022, the BFSI segment accounted for the largest share of the tokenization market. Additionally, this segment is projected to register the highest CAGR during the forecast period. The growth of this segment is attributed to increasing data breaches in the BFSI sector and the rising adoption of payment security solutions to prevent fraud.

Based on geography, the tokenization market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2022, North America accounted for the largest share of the tokenization market. North America’s major market share is attributed to the rising adoption of online payment modes for transactions. Furthermore, the presence of major market players that provide payment networks for online transactions drives the growth of this regional market.

The key players operating in the tokenization market are Bluefin Payment Systems LLC (U.S.), Braintree (U.S.), Cybersource (U.S.), Elavon (U.S.), Ingenico (France), Broadcom, Inc. (U.S.), Thales Group (France), Shift4 Payments, LLC (U.S.), Signifyd (U.S.), TNS, Inc. (U.S.), Tokenex (U.S.), SISA Information Security Pvt. Ltd. (India), Stripe (U.S.), Geobridge Corporation (U.S.), MasterCard (U.S.), Verifone Systems Inc. (U.S.), Fiserv, Inc. (U.S.), Micro Focus (U.K.), and American Express (U.S.).

Key questions answered in the report:

Which are the high-growth market segments based on offering, application, organization size, and end-use industry?
What was the historical market size for tokenization?
What are the market forecasts and estimates for the period 2023–2030?
What are the major drivers, restraints, and opportunities in the tokenization market?
Who are the major players in the tokenization market, and what are their market shares?
How is the competitive landscape in the tokenization market?
What are the recent developments in the tokenization market?
What are the different strategies adopted by the major players in the tokenization market?
What are the key geographic trends, and which are the high-growth countries?
Who are the local emerging players in the tokenization market, and how do they compete with the other players?

Scope of the report:

Tokenization Market, by Offering

Solutions
Services
Integration Services
Support Services
Consulting Services

Tokenization Market, by Application

Payment Security
User Authentication
Compliance Management

Tokenization Market, by Organization Size

Large Enterprises
Small & Medium-sized Enterprises

Tokenization Market, by End-use Industry

BFSI
Retail
Travel & Hospitality
Healthcare
IT & Telecom
Media & Entertainment
Other End-use Industries

Tokenization Market, by Geography

North America
U.S.
Canada
Europe
U.K.
Germany
France
Italy
Spain
Sweden
Denmark
Rest of Europe
Asia-Pacific
Japan
China
India
Singapore
Malaysia
Indonesia
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East & Africa
UAE
Israel
Rest of the Middle East & Africa

Tokenization Market - Report Summary

Report Metrics	Details
Years Considered	2021 - 2030
Base Year	2022
Forecast Period	2023-2030
Page Count	212
Units Referenced	Value (USD Million)
Segments/Key Topics	Market by Offering, Market by Application, Market by Organization Size, Market by End-use Industry, Market by Geography
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Key Companies Mentioned	Bluefin Payment Systems LLC (U.S.), Braintree (U.S.), Cybersource (U.S.), Elavon (U.S.), Ingenico (France), Broadcom, Inc. (U.S.), Thales Group (France), Shift4 Payments, LLC (U.S.), Signifyd (U.S.), TNS, Inc. (U.S.), Tokenex (U.S.), SISA Information Security Pvt. Ltd. (India), Stripe (U.S.), Geobridge Corporation (U.S.), MasterCard (U.S.), Verifone Systems Inc. (U.S.), Fiserv, Inc. (U.S.), Micro Focus (U.K.), and American Express (U.S.).

FAQs About the Report

What is the value of revenue generated from the sale of tokenization solution and services across the globe? At what rate is their demand expected to grow for the next 5–7 years?

The tokenization market is projected to reach $13.23 billion by 2030, at a CAGR of 19.7% during the forecast period.

Which offering segment showcases high growth opportunities for the tokenization market players?

In 2023, the solutions segment is estimated to account for the largest share of the tokenization market. The large market share of this segment is mainly attributed to the increasing need to ensure compliance with payment security guidelines and the growing need to ensure continuous customer experience and maintain fraud prevention levels due to increased financial crimes. Moreover, growing consumer interest in contactless payments and rising demand for cloud-based tokenization solutions are expected to provide lucrative opportunities for the market’s growth.

Which application segments of the market are projected to create more traction in the tokenization market?

In 2023, the payment security segment is expected to account for the largest share of the global tokenization market. The large market share of this segment is attributed to the rise in demand for advanced payment security solutions for eCommerce, the increasing use of payment applications across different industries, and the rising need to secure online business-sensitive transactions from advanced cyberattacks.

What are the key factors driving the growth of the tokenization market? What are major opportunities for existing market players and new entrants in the market?

The growth of this market is attributed to the proliferation of digital payment methods, stringent PCI DSS regulations, and increasing financial fraud in e-commerce. In addition, the growing inclination toward using payment applications across various industries is expected to offer significant opportunities for the growth of this market.

Who are the major players operating in the global tokenization market?

Some of the key players operating in the tokenization market are Bluefin Payment Systems LLC (U.S.), Braintree (U.S.), Cybersource (U.S.), Elavon (U.S.), Ingenico (France), Broadcom, Inc. (U.S.), Thales Group (France), Shift4 Payments, LLC (U.S.), Signifyd (U.S.), TNS, Inc. (U.S.), Tokenex (U.S.), SISA Information Security Pvt. Ltd. (India), Stripe (U.S.), Geobridge Corporation (U.S.), MasterCard (U.S.), Verifone Systems Inc. (U.S.), Fiserv, Inc. (U.S.), Micro Focus (U.K.) and American Express (U.S.).

Which regions/countries are expected to witness the significant demand for tokenization in the coming years?

Asia-Pacific is expected to register the highest growth rate during the forecast period.