Tokenization Global Market Sees Growth Rate Of 24% Through 2026

The global tokenization market size is expected to grow from $1.92 billion in 2021 to $2.32 billion in 2022 at a compound annual growth rate (CAGR) of 21.09%. The change in the market growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2021. The global tokenization market size is expected to reach $5.45 billion in 2026 at a CAGR of 23.74%.

What is the Global Tokenization Market?

The tokenization market consists of sales of tokenization services and solutions by entities (organizations, sole traders, and partnerships). Tokenization is a method of converting sensitive data into non-sensitive data, referred to as a token. The token has no extrinsic or exploitable meaning or value; it is a piece of data that represents another, more valuable piece of information. Tokenization protects sensitive data such as credit card data, medical information, social security numbers and others while preserving its business utility.

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What drives the Global Tokenization Market?

The increasing amount of digital and contactless payments is expected to propel the growth of the tokenization market during the forecast period. Tokenization protects sensitive data by changing it with a non-significant value having the same format and length as the original one. The use of card tokenization for payments option is more secure than encryption, since with tokenization, there is no cryptographic key, only an intelligent mapping that cannot be cracked in the event of an attack. The increasing digital payments creates high demand for payment security, thus driving the tokenization market. For instance, according to Indian government data, digital transactions grew by close to 90% from 232,000 to over 430,000 in the three years between FY19 to FY21. Hence, the growing digital transitions and payments is expected to drive the tokenization market.

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Global Tokenization Market Segments
The global tokenization market is segmented:
By Component: Solutions, Services
By Service: Professional Services, Managed Services
By Application Area: Payment Security, User Authentication, Compliance Management
By Vertical: Banking, Financial Services, and Insurance, Healthcare, IT And ITeS, Government, Retail and eCommerce, Energy and Utilities, Others
By Organization Size: Large Enterprises, SMEs
By Geography: The regions covered in the chartered air transport market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

Tokenization Global Market Report 2022provides market size and growth forecasts for the global tokenization market, global tokenization market share, tokenization market segments and geographies, tokenization market competitive landscape including leading competitors’ revenues, profiles and market shares. The tokenization market report identifies top countries and segments for opportunities and strategies based on market trends and leading competitors’ approaches.

Global Tokenization Industry Playersinclude Fiserv Inc., Visa, American Express Company, CipherCloud, Inc. Based on industry trends and company analysis, the report explains a number of strategies for companies in the market.