Tokenization Market by Solution, Service, Application Area (Payment Security, User Authentication, Compliance Management), Deployment Mode (Cloud, On-Premises), Organization Size (SMEs, Large Enterprises), Vertical, and Region - Global Forecast to 2022

The tokenization market size is expected to grow from USD 823.0 Million in 2017 to USD 2,258.6 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 22.4%. The report aims at projecting the market size and future growth potential of tokenization across different segments, such as solution, services, application areas, deployment modes, organization size, verticals, and regions. The base year for the study is 2016 and the forecast period is considered to be 2017 to 2022. The objective of the study is to define, describe, and forecast the tokenization market on the basis of solutions, services, application areas, deployment modes, organization sizes, verticals, and regions. It also analyzes recent developments, such as partnerships, strategic alliances, mergers and acquisitions, business expansions, new product developments, and research and developments in the global market.

The research methodology used to estimate and forecast the tokenization market begins with collection and analysis of data on key vendor revenues through secondary sources such as company website, press releases, annual reports, TechTarget reports, Cloud Security Alliance reports, SC magazine, and SANS Institute studies. The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the total market size of the global tokenization market from the revenue of the key players. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all the segments and subsegments. The breakdown of profiles of the primary is depicted in the below figure:

To know about the assumptions considered for the study, download the pdf brochure

The tokenization market comprises key vendors, such as Hewlett-Packard Enterprises (US), Symantec Corporation (US), Gemalto NV (Netherlands), Fiserv, Inc. (US), First Data Corporation (US), CardConnect Corp. (US), Thales e-Security (US), 3Delta Systems (US), CipherCloud (US), CyberSource (US), Liaison Technologies (US), Protegrity USA, Inc. (US), Futurex (US), Paymetric, Inc. (US), and TokenEx LLC (US). These vendors sell tokenization solutions to end-users to cater to their unique business requirements and security needs.

Key Target Audience

• Government agencies
• Tokenization vendors
• Payment solution providers
• Independent software vendors
• Consulting firms
• System integrators
• Value-Added Resellers (VARs)
• Information Technology (IT) security agencies
• Managed Security Service Providers (MSSPs)

 “Study answers several questions for the stakeholders, primarily which market segments to focus in the next 2–5 years for prioritizing the efforts and investments”.

Scope of the Report

The research report segments the tokenization market into the following submarkets:

By Component:

• Solution
• Service
• Professional services
• Consulting
• Integration Services
• Training and Education
• Support and Maintenance
• Managed services

By Application Area:

• Payment Security
• User Authentication
• Compliance Management

By Deployment Mode:

• On-premises
• Cloud

By Organization Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By Vertical:

• Banking, Financial Services, and Insurance (BFSI)
• Government
• Retail
• Healthcare
• Telecom and IT
• Energy and Utilities
• Automotive
• Education
• Others

By Region:

• North America
• Europe
• Aisa Pacific (APAC)
• Middle East and Africa (MEA)
• Latin America

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product matrix which gives a detailed comparison of product portfolio of each company

Geographic Analysis

• Further breakdown of the North America tokenization market
• Further breakdown of the Europe market
• Further breakdown of the APAC market
• Further breakdown of the MEA market
• Further breakdown of the Latin America market

Company Information

• Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 16)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
    1.4 Years Considered for the Study
    1.5 Currency
    1.6 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Research Assumptions and Limitations
           2.3.1 Limitations

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 29)
    4.1 Attractive Market Opportunities in Tokenization Market
    4.2 Tokenization Market, By Component, 2017–2022
    4.3 Market By Service, 2017–2022
    4.4 Market By Professional Service, 2017–2022
    4.5 Market By Application Area, 2017–2022
    4.6 Market By Deployment Type, 2017–2022
    4.7 Market By Organization Size, 2017–2022
    4.8 Market By Vertical, 2017–2022
    4.9 Lifecycle Analysis, By Region

5 Market Overview and Industry Trends (Page No. - 34)
    5.1 Regulatory Implications
           5.1.1 Payment Card Industry Data Security Standard(PCI-DSS)
           5.1.2 Health Insurance Portability and Accountability Act (HIPAA)/Hitech Compliance
           5.1.3 Federal Information Security Management Act (FISMA)
           5.1.4 Gramm-Leach-Bliley Act (GLBA)
           5.1.5 Sarbanes-Oxley Act
    5.2 Innovation Spotlight
    5.3 Market Dynamics
           5.3.1 Drivers
                    5.3.1.1 Rise in Credit/Debit Card Fraudulent Activities
                    5.3.1.2 Growing Need for Payment Security for Digital Ecommerce
                    5.3.1.3 Increasing Need for PCI-DSS Compliance to Regulate and Secure Cardholder’s Data
           5.3.2 Restraints
                    5.3.2.1 Addressing Vulnerabilities From EMV Standards
                    5.3.2.2 Lack of Knowledge About Security Tokens Among End-Users
           5.3.3 Opportunities
                    5.3.3.1 Emergence of Tokenization-As-A-Service Model
                    5.3.3.2 Increase in Adoption of Contactless Payments
           5.3.4 Challenges
                    5.3.4.1 Budgetary Constraints for Implementation of New Tokenization Technology Infrastructure
                    5.3.4.2 Traditional IT Security Mindset and Cybersecurity Skills

6 Tokenization Market Analysis, By Component (Page No. - 42)
    6.1 Introduction
    6.2 Solution
    6.3 Services
           6.3.1 Professional Services
           6.3.2 Consulting
           6.3.3 Integration
           6.3.4 Training and Education
           6.3.5 Support and Maintenance
           6.3.6 Managed Services

7 Tokenization Market Analysis, By Application Area (Page No. - 51)
    7.1 Introduction
    7.2 Payment Security
    7.3 User Authentication
    7.4 Compliance Management

8 Market Analysis, By Deployment Type (Page No. - 56)
    8.1 Introduction
    8.2 Cloud
    8.3 On-Premises

9 Market Analysis, By Organization Size (Page No. - 60)
    9.1 Introduction
    9.2 Small and Medium-Sized Enterprises (SMES)
    9.3 Large Enterprises

10 Tokenization Market Analysis, By Vertical (Page No. - 64)
     10.1 Introduction
     10.2 Banking, Financial Services, and Insurance (BFSI)
     10.3 Government
     10.4 Retail
     10.5 Healthcare
     10.6 IT and Telecom
     10.7 Energy and Utilities
     10.8 Automotive
     10.9 Education
     10.10 Others

11 Geographic Analysis (Page No. - 74)
     11.1 Introduction
     11.2 North America
     11.3 Europe
     11.4 Asia-Pacific (APAC)
     11.5 Middle East and Africa (MEA)
     11.6 Latin America

12 Competitive Landscape (Page No. - 94)
     12.1 Introduction
             12.1.1 Vanguards
             12.1.2 Innovators
             12.1.3 Dynamic
             12.1.4 Emerging
     12.2 Competitive Benchmarking
             12.2.1 Analysis of Product Portfolio of Major Players in Tokenization Market
             12.2.2 Business Strategies Adopted By Major Players in Tokenization Market

13 Company Profiles (Page No. - 98)
(Business Overview, Product Offerings & Business Strategies, Recent Developments)*
     13.1 HPE
     13.2 Symantec
     13.3 Gemalto
     13.4 Fiserv
     13.5 First Data Corporation
     13.6 Cardconnect
     13.7 Thales E-Security
     13.8 3delta Systems
     13.9 Ciphercloud
     13.10 Cybersource
     13.11 Liaison Technologies
     13.12 Protegrity
     13.13 Futurex
     13.14 Paymetric
     13.15 Tokenex

*Details on Business Overview, Product Offerings & Business Strategies, Recent Developments Might Not Be Captured in Case of Unlisted Companies.

14 Key Innovators (Page No. - 142)
     14.1 Ingenico Epayments
             14.1.1 Overview
             14.1.2 Recent Developments
     14.2 Merchant Link
             14.2.1 Overview

15 Appendix (Page No. - 146)
     15.1 Discussion Guide
     15.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.3 Introducing RT: Real-Time Market Intelligence
     15.4 Available Customizations
     15.5 Related Reports
     15.6 Author Details

List of Tables (68 Tables)

Table 1 USD Exchange Rate, 2014–2016
Table 2 Tokenization Market Size and Growth Rate, 2015–2022 (USD Million, Y-O-Y %)
Table 3 Market Size, By Component, 2015–2022 (USD Million)
Table 4 Solution: Market Size, By Region, 2015–2022 (USD Million)
Table 5 Tokenization Market Size, By Service, 2015–2022 (USD Million)
Table 6 Services: Market Size, By Region, 2015–2022 (USD Million)
Table 7 Professional Services: Tokenization Services Market Size, By Type, 2015–2022 (USD Million)
Table 8 Consulting Services Market Size, By Region, 2015–2022 (USD Million)
Table 9 Integration Services Market Size, By Region, 2015–2022 (USD Million)
Table 10 Training and Education Services Market Size, By Region, 2015–2022 (USD Million)
Table 11 Support and Maintenance Services Market Size, By Region 2015–2022 (USD Million)
Table 12 Managed Services Market Size, By Region, 2015–2022 (USD Million)
Table 13 Tokenization Market Size, By Application Area, 2015–2022 (USD Million)
Table 14 Payment Security: Market Size, By Region, 2015–2022 (USD Million)
Table 15 User Authentication: Market Size, By Region, 2015–2022 (USD Million)
Table 16 Compliance Management: Market Size, By Region, 2015–2022 (USD Million)
Table 17 Tokenization Market Size, By Deployment Type, 2015–2022 (USD Million)
Table 18 Cloud Deployment: Market Size, By Region, 2015–2022 (USD Million)
Table 19 On-Premises: Market Size, By Region, 2015–2022 (USD Million)
Table 20 Market Size, By Organization Size, 2015–2022 (USD Million)
Table 21 SMES: Market Size, By Region, 2015–2022 (USD Million)
Table 22 Large Enterprises: Market Size, By Region, 2015–2022 (USD Million)
Table 23 Tokenization Market Size, By Vertical, 2015–2022 (USD Million)
Table 24 BFSI Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 25 Government Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 26 Retail Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 27 Healthcare Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 28 IT and Telecom Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 29 Energy and Utilities Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 30 Automotive Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 31 Education Vertical: Market Size, By Region, 2015–2022 (USD Million)
Table 32 Others Vertical Segment: Market Size, By Region, 2015–2022 (USD Million)
Table 33 Tokenization Market Size, By Region, 2015–2022 (USD Million)
Table 34 North America: Market Size, By Component, 2015–2022 (USD Million)
Table 35 North America: Market Size, By Service, 2015–2022 (USD Million)
Table 36 North America: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 37 North America: Market Size, By Application Area, 2017–2022 (USD Million)
Table 38 North America: Market Size, By Deployment Type, 2015–2022 (USD Million)
Table 39 North America: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 40 North America: Market Size, By Vertical, 2015–2022 (USD Million)
Table 41 Europe: Tokenization Market Size, By Component, 2015–2022 (USD Million)
Table 42 Europe: Market Size, By Service, 2015–2022 (USD Million)
Table 43 Europe: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 44 Europe: Market Size, By Application Area, 2015–2022 (USD Million)
Table 45 Europe: Market Size, By Deployment Type, 2015–2022 (USD Million)
Table 46 Europe: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 47 Europe: Market Size, By Vertical, 2015–2022 (USD Million)
Table 48 APAC: Tokenization Market Size, By Component, 2015–2022 (USD Million)
Table 49 APAC: Market Size, By Service, 2015–2022 (USD Million)
Table 50 APAC: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 51 APAC: Market Size, By Application Area, 2015–2022 (USD Million)
Table 52 APAC: Market Size, By Deployment Type, 2015–2022 (USD Million)
Table 53 APAC: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 54 APAC: Market Size, By Vertical, 2015–2022 (USD Million)
Table 55 MEA: Tokenization Market Size, By Component, 2015–2022 (USD Million)
Table 56 MEA: Market Size, By Service, 2015–2022 (USD Million)
Table 57 MEA: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 58 MEA: Market Size, By Application Area, 2015–2022 (USD Million)
Table 59 MEA: Market Size, By Deployment Type, 2015–2022 (USD Million)
Table 60 MEA: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 61 MEA: Market Size, By Vertical, 2015–2022 (USD Million)
Table 62 Latin America: Tokenization Market Size, By Component, 2015–2022 (USD Million)
Table 63 Latin America: Market Size, By Service, 2015–2022 (USD Million)
Table 64 Latin America: Market Size, By Professional Service, 2015–2022 (USD Million)
Table 65 Latin America: Market Size, By Application Area, 2015–2022 (USD Million)
Table 66 Latin America: Market Size, By Deployment Type, 2015–2022 (USD Million)
Table 67 Latin America: Market Size, By Organization Size, 2015–2022 (USD Million)
Table 68 Latin America: Market Size, By Vertical, 2015–2022 (USD Million)

List of Figures (41 Figures)

Figure 1 Global Tokenization Market: Market Segmentation
Figure 2 Global Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 Global Tokenization Market: North America to Hold Largest Share in 2017
Figure 8 Fastest Growing Segments of Tokenization Market
Figure 9 Need for PCI-DSS Compliance to Regulate and Secure Cardholder’s Data
Figure 10 Services Segment to Record Higher Growth During Forecast Period (USD Million)
Figure 11 Managed Services to Record Highest Growth During Forecast Period (USD Million)
Figure 12 Training and Education Services to Record Highest Growth During Forecast Period (USD Million)
Figure 13 Payment Security Segment to Record Highest Growth During Forecast Period (USD Million)
Figure 14 Cloud Segment to Record Higher Growth During Forecast Period (USD Million)
Figure 15 SMES Segment to Record Higher Growth During Forecast Period (USD Million)
Figure 16 Retail Segment to Record Highest Growth During Forecast Period (USD Million)
Figure 17 APAC Tokenization Market Holds Immense Growth Opportunities
Figure 18 Tokenization Market: Drivers, Restraints, Opportunities, and Challenges
Figure 19 Most Popular Future Payment Methods
Figure 20 Payment Frauds Trend Among Organizations (% 2005-2015)
Figure 21 Number of Reported Incidents During 2006-2015
Figure 22 Cyber-Attacks Affecting High Impact Systems
Figure 23 Services Segment to Record Higher Growth During Forecast Period (USD Million)
Figure 24 Managed Services Segment to Record Higher Growth During Forecast Period (USD Million)
Figure 25 Payment Security Application to Record Highest Growth During Forecast Period (USD Million)
Figure 26 Cloud Deployment Type to Record Higher Growth During Forecast Period (USD Million)
Figure 27 SMES Segment to Record Higher Growth During Forecast Period (USD Million)
Figure 28 Retail Vertical to Record Highest Growth During Forecast Period (USD Million)
Figure 29 APAC to Hold Largest Market Share During Forecast Period (USD Million)
Figure 30 Global Tokenization Market Snapshot: North America the Emerging Region
Figure 31 North America: Tokenization Market Snapshot
Figure 32 APAC: Tokenization Market Snapshot
Figure 33 Dive Chart
Figure 34 Top Five Companies Ranking in Tokenization Market
Figure 35 HPE: Company Snapshot
Figure 36 Symantec: Company Snapshot
Figure 37 Gemalto: Company Snapshot
Figure 38 Fiserv: Company Snapshot
Figure 39 First Data Corporation: Company Snapshot
Figure 40 Cardconnect: Company Snapshot
Figure 41 Ingenico Epayments: Company Snapshot

MarketsandMarkets expects the tokenization market size to grow from USD 823.0 Million in 2017 to USD 2,258.6 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 22.4%. The constant pressure of managing sensitive data of consumers, along with the need to manage stringent compliances, has led enterprises of all sizes to adopt tokenization solutions for critical information protection. Moreover, cloud-based deployment is gaining high traction in the market, as it requires less capital investment, helps decrease the operational and maintenance costs, and reduces the management’s efforts. Cloud tokenization solutions are available according to customer’s demand, wherein a customer can start or stop any service, at will. Tokenization solution replaces the payment card data with a unique token and helps organizations comply with Payment Card Industry Data Security Standard (PCI DSS) and Health Insurance Portability and Accountability Act (HIPAA) compliance.

Tokenization solution can be used for payment security, user authentication, and compliance management. The payment security application area is expected to dominate the tokenization market and contribute the largest market share during the forecast period. It is expected to play a key role in changing the market landscape and grow at the highest rate during the forecast period, as the need for payment security is increased due to growing eCommerce sector and digitization in the healthcare industry.

Cloud deployment is the fastest-growing deployment mode in the tokenization market, as it benefits organizations with increased scalability, speed, 24/7 services, and enhanced management capabilities. Small & Medium-sized Enterprises (SMEs), in particular, have opted for cloud deployment, as it can help them avoid costs pertaining to hardware, software, storage, and technical staff.

North America is expected to have the largest market size and would dominate the tokenization market during the forecast period. Increasing penetration of the Internet and growing payment frauds have led to the growing payment security needs. Furthermore, rapid economic growth in the developing APAC countries, along with improving regulatory reforms and economic stability is driving the growth of the tokenization market in this region. In Latin America, SMEs as well as enterprises belonging to a range of verticals, such as Banking, Financial Services, and Insurance (BFSI), government, retail, healthcare, and IT and telecom, are expected to increase investments in tokenization solutions.

Addressing the vulnerabilities from Europay, MasterCard, and Visa (EMV) standards are becoming an important restraint for the growth of the market. The EMV security is referred to as chip and Personal Identification Number (PIN), as the chip protects against card frauds and the PIN against stolen card abuse. The EMV implementers just used counters, timestamps, or home-grown algorithms that exposed them to cyber threats. Still, many organizations are ignoring this and continuing the EMV standards and not adopting the tokenization solutions. This factor is restraining the growth of tokenization market.

The increasing transactions due to constantly growing eCommerce and digitization in healthcare are expected to provide great opportunities to the tokenization solution vendors to grow in the future. There are several established players in this market, such as Hewlett-Packard Enterprises (US), Symantec Corporation (US), Gemalto NV (Netherlands), Fiserv, Inc. (US), First Data Corporation (US), CardConnect Corp. (US), Thales e-Security (US), 3Delta Systems (US), CipherCloud (US), CyberSource (US), Liaison Technologies (US), Protegrity USA, Inc. (US), Futurex (US), Paymetric, Inc. (US), and TokenEx LLC (US).

To speak to our analyst for a discussion on the above findings, click Speak to Analyst