How Has The Computer Vision in Tokenization Market Size Evolved In Recent Years?
The tokenization market has seen considerable growth due to a variety of factors.
• The market size for tokenization has seen rapid expansion in the last few years. It is projected to increase from $3.38 billion in 2024 to $4.13 billion in 2025, marking a compound annual growth rate (CAGR) of 22.1%.
Factors such as the rise in mobile payments, the growth of e-commerce, data breaches, the surge in digital transformation, strategies to prevent fraud and worries over consumer privacy have all contributed to the significant growth in this historic period.
What Are the Future Growth Projections for the Tokenization Market?
The tokenization market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, we can anticipate a staggering surge in the tokenization market size. This sector is projected to expand to a noteworthy figure of $10.65 billion by 2029, with a compound annual growth rate (CAGR) of 26.8%.
Factors like cross-border payments, the surge in mobile and contactless payments, security measures in healthcare data, supply chain protection, and decentralized finance contribute to this growth during the forecast period. Notable trends for the same period include the incorporation of blockchain, tokenizing physical assets, non-fungible tokens (NFTs), integration of AI and machine learning, and tokenization as a service (TaaS).
What Are The Primary Growth Drivers In The Tokenization Market?
The expanding adoption of digital and contactless payments is projected to fuel the growth of the tokenization market in the forecasted duration. Tokenization safeguards confidential data by substituting it with a non-significant value that retains the same format and length as the original data. Compared to encryption, card tokenization is considered more secure for payment options as it eliminates the cryptographic key, leaving only an intelligent map that can't be hacked during an attack. This accelerated adoption of digital payments contributes to a substantial demand for payment security, consequently propelling the tokenization market. For example, as Clearly Payments Inc, a Canadian payment processing firm reported in September 2024, there was a noticeable surge in transactions in the United Kingdom in 2023, with a total of 18.3 billion. This is largely attributed to the prevalent use of contactless cards and mobile payments. Concurrently, Australia observed consistent transaction growth, increasing from 2.5 billion to 5.5 billion, highlighting the country's strong digital payment infrastructure. Hence, it's anticipated that the rising digital transitions and payments will stimulate the tokenization market growth.
What Are The Major Segments Within The Tokenization Market?
The tokenization market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Services: Professional Services, Managed Services
3) By Application Area: Payment Security, User Authentication, Compliance Management
4) By Vertical: Banking, Financial Services, And Insurance, Healthcare, IT And ITeS, Government, Retail And eCommerce, Energy And Utilities, Other Verticals
5) By Organization Size: Large Enterprises, SMEs
Subsegments:
1) By Solutions: Tokenization Software, Payment Tokenization Solutions, Data Tokenization Solutions, Cloud-based Tokenization Solutions
2) By Services: Consulting Services, Integration Services, Managed Services, Support And Maintenance Services
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Which Trends Are Expected To Transform The Tokenization
Strategic partnerships are the key to survival in the tokenization market for a lot of major enterprises. They drive innovation, facilitate the expansion of capabilities and allow the tokenization sector to capitalize on the different expertises, resources, and technologies. For instance, in August 2022, the American data privacy vault firm, Skyflow, entered into a deeper partnership with Visa Inc., a US-based credit card service company, to facilitate widespread adoption of secure payment standards via network tokenization. This partnership aims to simplify and secure network tokenization implementations, in line with Skyflow's pledge to intensify the overall security of payments. Through Token ID, which is a solution provided by Visa, Skyflow encourages the merchants, payment facilitators, and gateways to adopt network tokenization, promising benefits like fraud reduction, improved customer experience, higher approval rates, and lowered transaction expenses.
Who Are the Key Players in the Tokenization Market?
Major companies operating in the tokenization market include:
• American Express Company
• Visa Inc.
• Mastercard Inc.
• Fiserv Inc.
• Entrust Corporation
• Thales Defense & Security Inc.
• Sygnum Bank AG
• Bluefin Payment Systems LLC
• AsiaPay Limited
• Futurex Industries Pvt Ltd.
• TokenEx Inc.
• Unicsoft Inc.
• TokenSoft Inc.
• MeaWallet AS
• Inveniam Capital Partners Inc.
• Smart Token Labs
• Apex India Pvt Ltd.
• Mt Pelerin AG
• Blockchain App Factory
• Token Minds Co
• Boosty Labs
• K20 Fund LLC
• Securitize Inc.
• DigiShares ApS
• Stably Inc.
• CipherCloud Inc.
• Hst Global Services Private Limited
• Intelliblock Technologies Private Limited
What Is The Most Dominant Region In The Tokenization Market?
North America was the largest region in the tokenization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tokenization market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
