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What Is The Projected Market Size & Growth Rate Of The Tokenization Market?
The market size of tokenization has seen an exponential expansion in the past few years. It is predicted to escalate from $3.38 billion in 2024 to $4.1 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 21.4%. The notable growth in the previous years can be associated with the surge in mobile payments, growth of e-commerce, data breach incidents, rising digital transformation, fraud mitigation efforts, and growing concerns over consumer privacy.

Anticipated to experience considerable rise in the forthcoming years, the tokenization market is projected to reach $10.46 billion by 2029, with a compound annual growth rate (CAGR) of 26.4%. This advancement during the forecast period can be credited to various factors including cross-border remittances, amplified mobile and contactless transactions, security of healthcare information, supply chain protection, and decentralized financing. Looking ahead, the forecast period is expected to see significant trends such as the incorporation of blockchain, tokenization of tangible assets, proliferation of non-fungible tokens (NFTs), the merging of AI and machine learning, and the emergence of tokenization as a service (TaaS).

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What Is The Crucial Factor Driving The Global Tokenization Market?
The forecasted growth of the tokenization market is thought to be driven by the escalating adoption of digital and contactless payments. Tokenization enhances data security by substituting sensitive details with non-essential values that retain the same format and length. Card tokenization is a safer payment method compared to encryption because it employs an unbreakable intelligent map instead of a cryptographic key. The rising trend in digital payments necessitates improved payment security, which contributes to the expansion of the tokenization market. For instance, Clearly Payments Inc., a Canadian payment processing firm, noted in September 2024 that there was a considerable surge in transactions in the United Kingdom in 2023, clocking in at 18.3 billion. This was largely a result of the common use of contactless cards and mobile payments. Australia, on the other hand, enjoyed steady transaction growth from 2.5 billion to 5.5 billion, which proves the country's firm infrastructure for digital payments. Hence, digital transitions and payments are anticipated to fuel the growth of the tokenization market.

Who Are The Emerging Players In The Tokenization Market?
Major players in the Tokenization 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.

What Are The Key Trends Shaping The Tokenization Industry?
Key players in the tokenization market, such as Skyflow and Visa Inc., are entering strategic partnerships to maintain their stance in the tokenization service market. These partnerships foster innovation, advance capabilities, and form synergies in the tokenization market by harnessing various skills, resources, and technologies. For example, in August 2022, Skyflow, an American company that specializes in data privacy vaults, decided to extend its collaboration with Visa Inc., an American credit card service corporation, with an aim to make network tokenization the standard for secure payments. This enhanced collaboration simplifies the process of network tokenization, ensures safety and simplicity, and is in line with Skyflow's aim to increase the security of the payment ecosystem overall. By utilizing Token ID, a Visa solution, Skyflow promotes the adoption of network tokenization for merchants, payment facilitators, and gateways, providing benefits like reduced fraud, improved user experience, higher approval rates, and lower transaction costs.

What Segments Are Covered In The Tokenization Market Report?
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 Region Is Projected To Hold The Largest Market Share In The Global Tokenization Market?
In 2024, North America led the pack as the biggest player in the tokenization market. Meanwhile, Asia-Pacific is predicted to outpace other regions in terms of growth during the forecasted period. The tokenization market report includes data on Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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