Tokenization Market size is expected to be valued at USD 2,890.2 million in 2022 and is expected to grow at a CAGR of 18.2% in 2022-2028. Tokenization is the procedure to exchange complex data for non-sensitive data known as the token which can be used in an internal system or database without bringing it into scope. Tokenized data is irreversible and undecipherable which is unlike encrypted data. Tokens, on their own, do not have any values and so they are useful as they represent something bigger such as a Social Security number (SSN) or credit card primary account number (PAN). However, this mechanism is useful in healthcare, financial institutes, and government institutes in order to convert data into tokens. In the current scenario, tokenization is useful in the educational and training sectors and the corporate world for professional alliances. The increase in contactless real time payments methods in all sectors can lead to the tokenization market growth. Moreover, growing demand for customer experience and increasing difficulties in data management are some primary factors that can boost the global tokenization market. Apart from these, an increase in strict rules and regulatory values leading to advanced security can also accelerate the market in the future. Moreover, increasing tokenization market demand for cloud-based services and solutions can also drive the global market further. However, some factors such as lack of skilled professionals and unfortunate management in generating a user implementation process can restrain the growth of the market. moreover, growing difficulties in tokenization implementation and prevention of fraud. Increasing demand for cloud-based tokenization services and solutions can create an opportunity for the growth of the global tokenization market.
Recent Tokenization Market Developments:
In August 2021, new mobile security catering to small businesses was launched by Lookout, Inc. to diversify the portfolio of the company in order to provide better solutions.
In January 2022, a new platform, Visa Acceptance Cloud (VAC) was announced by Visa to update the abilities of payment facilities.