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Tokenization Market: Deep Analysis, Trends, Segmentation, and Opportunities, Forecast 2027

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Global Tokenization Market is valued at USD 1824.7 Million in 2020 and is expected to reach USD 6312.8 Million by 2027 with a CAGR of 19.4% over the forecast period.

Scope of Global Tokenization Market Report:

Tokenization is the process of transforming sensitive data into non-sensitive data known as “tokens” that can be developed in a database or internal system without revealing it to the public. Tokenization is often wont to safeguard sensitive data by replacing it with an irrelevant value of a similar length and format because of the original. The tokens are subsequently transported to an organization’s internal systems to be used, while the first data is kept safe during a token vault. Tokenized data, unlike encrypted data, is unbreakable and irrevocable.

Rising Prevalence of Credit Card Fraud, Increased Preference of Customers towards Contactless Payments and Increasing Adoption of Digital Payment are Driving the Market Growth

One of the major factors driving the growth of global tokenization market is rising cases of credit card fraud. For instance; according to the Cyber Crime & Security; in 2019, the state of Maharashtra in India had the highest number of credit and debit card frauds, with approximately 159 cases registered with the authorities. The country recorded over 365 cases of credit and debit card frauds that year. This category of crime came under the purview of Sections 420 of the Indian Penal Code. There were 650,572 cases of identity theft in the U.S. in 2019. Of those, 41 percent, or just over 270,000, were credit card fraud.

The Asia Pacific is expected to witness the fastest growth in the global tokenization market due to the increasing adoption of tokenization solutions, rising use of smartphones for online shopping, and the rapid adoption of online transactions inviting a number of increased cyber threats. In 2020, about 1.35 billion mobile phones were sold, with Samsung dominating yearly sales at over 253 million units sold.

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