The fraud frenzy is driving the global tokenization market and is expected to grow from $823.0 million in 2017 to $2.26 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 22.4%.
Payment security and compliance management are among the application areas contributing to the growth of the tokenization market.
The payment security application area is projected to contribute the largest market share during the forecast period.
Due to increased complexities in the payment transactions across the globe and the challenges of managing the sensitive information of users, payment security has become a major point of concern for organizations.
Cloud deployment is expected to have the largest market size in the tokenization market.
Cloud deployment is the fastest-growing deployment mode in the tokenization market and is expected to hold the larger market size from 2017 to 2022.
The cloud-based platform offers a unified way in the form of SaaS-based tokenization services to secure the payment data and help organizations comply with PCI DSS and HIPAA, which is beneficial for organizations that have strict budgets for security investments.
North America is expected to have the largest market size in the tokenization market. Due to the presence of a large number of tokenization vendors, North America is expected to have the largest market size in the tokenization market; whereas, Asia-Pacific (APAC) is expected to be the fastest-growing region during the forecast period.
Factors, such as increasing Internet usage, compliance regulation, and increased need for payment security in growing eCommerce are major factors for the adoption of tokenization solutions. Furthermore, the market in developing regions, such as the Middle East and Africa (MEA) and Latin America is expected to grow due to the increasing usage of mobility, cloud computing, expanding retail and banking sector, and government regulatory compliances.