Tokenization Market Report 2025 (Global Edition)

Global Tokenization Market Report 2025 Market Size Split by Component (Solutions, Services), by Services (Professional Services, Managed Services), by Application Area (Payment Security, User Authenti...

Tokenization Market Report Description

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Tokenization Market Insights Video

Competitive Landscape of the Tokenization Market

The tokenization market is highly competitive, with several major participants present that range from well-established businesses to creative startups. The aforementioned organizations cater to the increasing need for data security in many sectors by providing an array of tokenization solutions.

March 2024: The leading provider of tokenized real-world assets, Backed, has announced the opening of its full suite of services, which offers tokenization options to institutions. With the help of Backed's solutions, financial institutions can issue tokenized assets safely and effectively.

 

Top Companies Market Share in Tokenization Industry: (In no particular order of Rank)

• Visa
• Inc.
• MasterCard
• Inc.
• Fiserv
• Inc.
• Micro Focus International plc
• American Express Company
• Thales Group
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Tokenization Market

Which Region Dominates the Tokenization Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024. The market for tokenization in North America is anticipated to maintain its strong development trajectory owing to the continuous progress in technology, growing risks associated with cybersecurity, and strict regulations. The adoption of tokenization solutions will be fueled by the need for safe online transactions, adherence to data privacy laws, and the emergence of new technologies like blockchain and artificial intelligence. Overall, North America's tokenization market is expected to grow significantly due to the region's robust technology foundation, hospitable regulatory landscape, and rising need for safe data management products.

Which Region is Expanding at the Fastest CAGR?

Asia Pacific stands out as the fastest-growing region in the Tokenization market. The APAC region is witnessing a significant rise in e-commerce activities, driven by increasing internet penetration and smartphone usage. Tokenization helps secure online transactions and protect payment information. Moreover, the frequency of data breaches and cyber-attacks in the region has heightened the need for advanced data security solutions. Tokenization provides an effective means to protect sensitive information. Thus, driving the market expansion in the region.

 

The current report Scope analyzes Tokenization Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Tokenization Market

According to Cognitive Market Research, the global Tokenization market size was estimated at USD 2514.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 1005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 17.8% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Tokenization market with a market size of USD 793.48 million in 2024 and is projected to grow at a CAGR of 17.6% during the forecast period. The demand is amplified by the nation's growing technological advancements.
• The Canada Tokenization market had a market share of USD 120.68 million in 2024 and is projected to grow at a CAGR of 18.6% during the forecast period. Canada's growing investment.
• The Mexico Tokenization market is projected to witness growth at a CAGR of 18.3% during the forecast period, with a market size of USD 91.52 million in 2024.

Europe Tokenization Market

According to Cognitive Market Research, the global Tokenization market size was estimated at USD 2514.2 Million out of which Europe held the market more than 30% of the global revenue with a market size of USD 754.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 18.1% from 2024 to 2031.

• The United Kingdom Tokenization market had a market share of USD 126.72 million in 2024 and is projected to grow at a CAGR of 18.9% during the forecast period. In the UK, Tokenization sales witness an upswing due to the growing investment.
• The France Tokenization market is projected to witness growth at a CAGR of 17.3% during the forecast period, with a market size of USD 69.39 million in 2024.
• According to Cognitive Market Research, the German Tokenization market size was valued at USD 149.34 million in 2024 and is projected to grow at a CAGR of 18.3% during the forecast period. In Germany, Tokenization sales surged due to the increasing technological advancements.
• The Italy Tokenization market is projected to witness growth at a CAGR of 17.5% during the forecast period, with a market size of USD 64.87 million in 2024.
• The Russia Tokenization market is projected to witness growth at a CAGR of 17.1% during the forecast period, with a market size of USD 116.91 million in 2024.
• The Spain Tokenization market is projected to witness growth at a CAGR of 17.2% during the forecast period with a market size of USD 61.85 million in 2024
• The Luxembourg Tokenization market is projected to witness growth at a CAGR of 18.2% during the forecast period, with a market size of USD 23.38 million in 2024.
• The Portugal Tokenization market is projected to witness growth at a CAGR of 17.9% during the forecast period, with a market size of USD 15.84 million in 2024.
• The Greece Tokenization market is projected to witness growth at a CAGR of 18.4% during the forecast period, with a market size of USD 9.05 million in 2024.
• Rest of Europe's Tokenization market is projected to witness growth at a CAGR of 16.8% during the forecast period, with a market size of USD 116.91 million in 2024.

Asia Pacific Tokenization Market

According to Cognitive Market Research, the global Tokenization market size was estimated at USD 2514.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 578.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.6% from 2024 to 2031.

• According to Cognitive Market Research, the China Tokenization market size was valued at USD 260.22 million in 2024 and is projected to grow at a CAGR of 21.1% during the forecast period. Tokenization sales surged in China due to increasing technology advancements.
• The Japan Tokenization market is projected to witness growth at a CAGR of 20.1% during the forecast period, with a market size of USD 79.80 million in 2024.
• The India Tokenization market had a market share of USD 69.39 million in 2024 and is projected to grow at a CAGR of 23.4% during the forecast period. India's growing digital payment.
• The South Korea Tokenization market is projected to witness growth at a CAGR of 20.7% during the forecast period, with a market size of USD 57.83 million in 2024.
• The Australian Tokenization market is projected to witness growth at a CAGR of 21.3% during the forecast period, with a market size of USD 30.07 million in 2024.
• The South East Asia Tokenization market is projected to witness growth at a CAGR of 22.6% during the forecast period, with a market size of USD 39.90 million in 2024.
• The Rest of the Asia Pacific Tokenization market is projected to witness growth at a CAGR of 21.4% during the forecast period, with a market size of USD 41.06 million in 2024.

South America Tokenization Market

According to Cognitive Market Research, the global Tokenization market size was estimated at USD 2514.2 Million out of which Latin America market of more than 5% of the global revenue with a market size of USD 125.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.0% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Tokenization market size was valued at USD 53.80 million in 2024 and is projected to grow at a CAGR of 19.6% during the forecast period. Tokenization sales flourish in Brazil due to rising technological advancement.
• Argentina Tokenization market had a market share of USD 21.12 million in 2024 and is projected to grow at a CAGR of 19.9% during the forecast period. The growing investment drives the market growth in the nation.
• Colombia Tokenization market is projected to witness growth at a CAGR of 18.8% during the forecast period with a market size of USD 11.19 million in 2024.
• Peru Tokenization market is projected to witness growth at a CAGR of 19.2% during the forecast period with a market size of USD 10.31 million in 2024.
• Chile Tokenization market is projected to witness growth at a CAGR of 19.3% during the forecast period with a market size of USD 9.05 million in 2024.
• The Rest of Latin America Tokenization market is projected to witness growth at a CAGR of 18.1% during the forecast period, with a market size of USD 20.24 million in 2024.

Middle East and Africa Tokenization Market

According to Cognitive Market Research, the global Tokenization market size was estimated at USD 2514.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 50.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 19.3% from 2024 to 2031.

• The GCC Countries Tokenization market is projected to witness growth at a CAGR of 20.1% during the forecast period with a market size of USD 21.52 million in 2024. Tokenization sales flourish due to growing technological advancement.
• The Egypt Tokenization market is projected to witness growth at a CAGR of 19.6% during the forecast period, with a market size of USD 5.28 million in 2024.
• The South Africa Tokenization market is projected to witness growth at a CAGR of 20.3% during the forecast period, with a market size of USD 7.94 million in 2024. Tokenization sales flourish in South Africa due to the rising investment.
• The Turkey Tokenization market is projected to witness growth at a CAGR of 18.8% during the forecast period, with a market size of USD 4.32 million in 2024.
• The Nigeria Tokenization market is projected to witness growth at a CAGR of 18.4% during the forecast period, with a market size of USD 5.28 million in 2024.
• The Rest of MEA Tokenization market is projected to witness growth at a CAGR of 18.3% during the forecast period, with a market size of USD 5.93 million in 2024.

Tokenization Market Analysis

Tokenization Market Component Segment Analysis

According to Cognitive Market Research, Solutions stand out as the dominating category. For the protection of sensitive data in a variety of use cases and industries, tokenization solutions are indispensable. Robust security features, regulatory compliance, and seamless integration with current systems are all provided by these solutions. The demand for improved data protection and privacy is projected to promote an increase in the usage of tokenization solutions as the digital economy grows and cyber threats change.

Services emerged as the fastest-growing category in the Tokenization market. The market for tokenization includes a broad spectrum of services and solutions that facilitate the use, administration, and enhancement of tokenization technology. These services are essential for assisting businesses in properly protecting sensitive data and adhering to legal obligations.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Tokenization Industry. Request a Free Sample PDF!

Tokenization Market Services Segment Analysis

According to Cognitive Market Research, the dominating category is Professional Services. A wide range of expert services that help businesses implement, manage, and optimize their tokenization strategies are driving the tokenization market. These services are necessary to guarantee that tokenization solutions offer strong data security, are compliant with regulations, and are successfully incorporated into an organization's current infrastructure.

The fastest-growing category in the Tokenization market is Managed Services. Managed services are essential to the tokenization market because they offer continuous management, monitoring, and support for tokenization solutions. For businesses trying to improve data security, optimize workflows, and guarantee regulatory compliance, these services are essential.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Tokenization Application Area Segment Analysis

Application Area Segment Analysis

According to Cognitive Market Research, the dominating category is Payment Security. As long as businesses prioritize data security and regulatory compliance in their payment processing operations, the market for payment tokenization is expected to develop. Global adoption of tokenization solutions will be fueled by advancements in tokenization technology and heightened awareness of cybersecurity risks. Tokenization will continue to be a key component of payment security measures as digital transactions and payment methods develop, guaranteeing secure and dependable payment experiences for both customers and enterprises.

The fastest-growing category in the Tokenization market is Compliance Management. To successfully deploy and run tokenization systems, a business must manage compliance, which helps to safeguard confidential information, reduce risks, and comply with regulations. In the ever-changing world of data protection, organizations may efficiently manage legal hurdles and achieve sustainable compliance by implementing best practices, utilizing cutting-edge technologies, and cultivating a culture of data security and privacy.

• Payment Security
• User Authentication
• Compliance Management

Tokenization Tokenization Technique Segment Analysis

Tokenization Technique Segment Analysis

According to Cognitive Market Research, the dominating category is API-Based. API-based tokenization solutions are anticipated to be essential for improving operational effectiveness, data security, and regulatory compliance in several different industries. API-driven tokenization services that are safe, scalable, and flexible are in high demand as long as businesses continue to place a high priority on digital innovation and customer trust. Further strengthening security and broadening use cases in the developing field of digital payments and data protection are innovations in artificial intelligence (AI), machine learning, and blockchain integration with API-based tokenization.

The fastest-growing category in the Tokenization market is the Gateway-Based. As long as businesses put a high priority on data security, legal compliance, and consumer trust in their payment processing operations, gateway-based tokenization solutions should see steady growth. The capabilities and acceptance of gateway-based tokenization in the changing environment of digital payments and transaction security are anticipated to be further strengthened by innovations in cloud-native architectures, AI-driven fraud prevention, and improved tokenization standards.

• API-Based
• Gateway-Based

Tokenization Deployment Mode Segment Analysis

Deployment Mode Segment Analysis

According to Cognitive Market Research, the dominating category is On-premises. Tokenization procedures and sensitive data are fully controlled by the organizations, assuring adherence to internal policies and data residency regulations. allows companies to adopt encryption key management procedures and specialized security measures based on their unique security requirements and legal requirements.

The fastest-growing category in the Tokenization market is the Cloud. Token verification is frequently carried out on the cloud, and the tokenization process necessitates an ongoing cloud connection to be completed. The rise in cloud-based payments and sensitive data handling procedures is what is driving the expansion of the cloud deployment market. In this deployment phase, tokenization necessitates an active internet connection to establish a cloud connection.

• Cloud
• On-premises

Tokenization Organization Size Segment Analysis

Organization Size Segment Analysis

According to Cognitive Market Research, the dominating category is Large Enterprises. Tokenization will continue to be a vital part of big businesses' cybersecurity plans as long as they emphasize data protection, legal compliance, and operational effectiveness. It is anticipated that the industry will continue to see innovation in tokenization solutions that are suited to major businesses' changing needs, such as advanced threat detection capabilities, scalability, and resilience. In an increasingly digitized and interconnected corporate landscape, big businesses can reduce risks, safeguard sensitive data, and uphold customer trust by skillfully utilizing tokenization technology.

The fastest-growing category in the Tokenization market is the SMEs. Tokenization is anticipated to be a crucial part of SMEs' cybersecurity strategies as regulatory requirements tighten and cybersecurity threats change. To address changing threats and regulatory difficulties, tokenization technologies—such as blockchain integration, AI-driven fraud detection, and improved encryption techniques—are expected to witness continuous innovation in the market. In an increasingly digitized and linked corporate environment, SMEs can improve their data security posture, reduce financial risk, and foster customer trust by implementing tokenization solutions that are customized to their unique requirements and operational restrictions.

• Large Enterprises
• SMEs

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion