Global Network Tokenisation Market Overview:
Network Tokenisation Market Size was estimated at 8.49 (USD Billion) in 2022. The Network Tokenisation Market Industry is expected to grow from 11.1(USD Billion) in 2023 to 123.7 (USD Billion) by 2032. The Network Tokenisation Market CAGR (growth rate) is expected to be around 30.72% during the forecast period (2024 - 2032).
Key Network Tokenisation Market Trends Highlighted
There are emerging trends in the Network Tokenization Market that indicate a shift towards increasing adoption of tokenized networks. Enterprises explore tokenization to bolster security, preserve confidentiality, and increase efficiency. This has led to demand for tokenization solutions with seamless integration into existing systems that have robust capabilities. Furthermore, there is a convergence of tokenization with cloud computing, blockchain and IOT that enables innovation and collaboration, among others. Key drivers for the market include the need for better data security, the increasing regulatory compliance requirements and the growing digital transformation initiatives being adopted. With the rise in data generated by connected devices in terms of volume as well as complexity, network tokenization becomes essential to ensure the privacy and integrity of sensitive information. Emerging opportunities are in new forms of tokenization, like dynamic tokenization and AI-powered tokenization, which can further enhance security and flexibility in network tokenization solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Network Tokenisation Market Drivers
Increasing Adoption of Cloud Computing
The increasing adoption of cloud computing is a major driver of the growth of the Network Tokenisation Market Industry. Cloud computing provides businesses with a number of benefits, including increased flexibility, scalability, and cost-effectiveness. As more businesses move their operations to the cloud, they are increasingly looking for ways to secure their data and applications. Network tokenization provides a number of benefits for securing data in the cloud, including Reduced risk of data breaches: Network tokenization reduces the risk of data breaches by encrypting data and storing it in a secure token vault.This makes it much more difficult for attackers to access and steal data. Improved compliance: Network tokenization can help businesses comply with a number of data protection regulations, including the GDPR and the CCPA. These regulations require businesses to protect personal data from unauthorized access and use. Network tokenization can help businesses meet these requirements by encrypting data and storing it in a secure token vault. Increased efficiency: Network tokenization can help businesses improve efficiency by automating the process of data security.This can free up IT staff to focus on other tasks, such as innovation and growth. As the adoption of cloud computing continues to grow, the demand for network tokenization solutions is expected to increase. This is because network tokenization provides a number of benefits for securing data in the cloud. Businesses that are looking to improve their data security and compliance should consider investing in a network tokenization solution.
Growing Demand for Data Privacy and Security
The growing demand for data privacy and security is another major driver of the growth of the Network Tokenisation Market Industry. In today's digital world, data is more valuable than ever before. Businesses collect vast amounts of data about their customers, employees, and operations. This data can be used to improve products and services, target marketing campaigns, and make better decisions. However, this data is also a valuable target for cybercriminals.Data breaches are becoming increasingly common, and they can have a devastating impact on businesses. Network tokenization can help businesses protect their data from cybercriminals by encrypting it and storing it in a secure token vault. This makes it much more difficult for attackers to access and steal data.
Government Regulations and Compliance
Apart from other drivers, government regulations and compliance form the basis of the growth of the Network Tokenisation Market Industry. In most countries, businesses are required to protect personal data from being accessed and used by unauthorized individuals. Through network tokenization, businesses can encrypt data and secure them in a safe token vault. This minimizes the chances of data breaches and ensures that the business complies with the law.
Network Tokenisation Market Segment Insights:
Network Tokenisation Market Use Case Insights
One of the key market drivers is the growth in network tokenization applications. In 2023, the financial transactions segment took the lion’s share of the market, to be precise, about 35% of the total revenue worldwide, and it is expected to do so throughout the analyzed period. The growing demand for secure and rapid payment processes as well as increasing interest in using digital money, help fuel the segment’s development. The supply chain management segment is another driving force of the network tokenization market. Many businesses are adopting certain technologies able to enhance supply chains’ transparency, traceability, and overall efficiency.The healthcare segment is also fairly important because of the increasing need coming from hundreds of healthcare providers to make sure that the data they exchange is safe and reliable. The government and public sector segment is developing as the result of the increasing number of governments and similar large organizations exploring network tokenization to make their activities more efficient and secure. Finally, the media and entertainment segment is worth mentioning since companies permanently present here are concerned with protecting their IP and streamlining the management of their digital rights.Thus, the growth in network tokenization uses will drive the market’s growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Network Tokenisation Market Network Type Insights
Network Type Segmentation Insights and Overview The Network Tokenisation Market, is segmented into Public Blockchains, Private Blockchains and Hybrid Blockchains. Public Blockchains, based on a decentralized and transparent network, command a substantial portion of the market. With a projected revenue of USD 42.7 billion in 2024, Public Blockchains offer enhanced security and immutability, making them suitable for industries seeking tamper-proof record-keeping. Private Blockchains, on the other hand, cater to enterprises seeking controlled and permissioned networks.Their revenue is estimated to reach USD 26.9 billion in 2024. Private Blockchains provide higher privacy and scalability, appealing to industries with sensitive data or regulatory compliance concerns. Hybrid Blockchains combine the advantages of both Public and Private Blockchains. They offer a balance between transparency and privacy, enabling controlled access to data while maintaining a degree of immutability. The Hybrid Blockchain segment is poised for significant growth, with a projected revenue of USD 19.3 billion in 2024.
Network Tokenisation Market Token Type Insights
The Token Type segment plays a pivotal role in driving the comprehensive growth of the Network Tokenisation Market, offering a diverse range of token applications. Security Tokens, representing ownership or equity in tangible assets, are projected to maintain a dominant market position, contributing significantly to the Network Tokenisation Market revenue. Utility Tokens, designed for specific functions within a platform or ecosystem, are also gaining traction, unlocking new possibilities for tokenization. Stablecoins, pegged to fiat currencies or other assets, provide stability and mitigate volatility, further augmenting the market growth.These token types cater to distinct use cases, fueling the expansion of the Network Tokenisation Market.
Network Tokenisation Market Business Model Insights
The Network Tokenisation Market is segmented based on the business model into Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and Consulting and Services. Among these, the SaaS segment is projected to account for the largest revenue share during the forecast period. The growth of this segment can be attributed to the increasing adoption of cloud-based solutions by enterprises seeking cost-effective and scalable network tokenization solutions. PaaS is expected to be the fastest-growing segment due to the rising demand for flexible and customizable network tokenization solutions.IaaS providers offer managed network tokenization services, providing enterprises with a cost-effective and scalable solution without the need for significant upfront investment. Consulting and Services play a crucial role in supporting enterprises throughout their network tokenization journey, offering expertise in planning, implementation, and ongoing support.
Network Tokenisation Market Tokenisation Mechanism Insights
The Tokenisation Mechanism segment is a crucial aspect of the Network Tokenisation Market, significantly impacting market growth. On-chain tokenization involves recording tokenized assets directly on the blockchain, providing enhanced security and transparency. Off-chain tokenization, on the other hand, involves tokenizing assets off the blockchain and maintaining them on a centralized server, offering greater flexibility and cost-effectiveness. Hybrid tokenization combines elements of both on-chain and off-chain approaches, striking a balance between security and efficiency.This growth is attributed to the increasing adoption of blockchain technology and the rising demand for digitizing assets.
Network Tokenisation Market Regional Insights
The regional segmentation of the Network Tokenisation Market presents distinct growth opportunities and challenges across various geographies. North America is projected to dominate the market, driven by a high concentration of technology providers and early adoption of innovative solutions. Europe follows closely, with a strong regulatory framework and a growing number of fintech startups. The Asia-Pacific (APAC) region is expected to witness significant growth due to increasing digitalization and a large population base. South America and the Middle East and Africa (MEA) regions are expected to contribute to the market's expansion, albeit at a moderate pace.The Network Tokenisation Market segmentation provides valuable insights into regional dynamics, allowing businesses to tailor their strategies and capitalize on growth opportunities in specific geographies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Network Tokenisation Market Key Players And Competitive Insights:
The Network Tokenisation Market industry is gaining prominence and is expected to grow with time. Prominent players, including Mastercard, Visa, IBM and Microsoft, are consistently making investments in the development of the Network Tokenisation Market to gain a competitive edge. These prominent players also work to offer advanced solutions considering the changing needs of the customers. The competitive business environment is more or less characterized by mergers and acquisitions, where established companies are working to strengthen their position. The industry leader is focused on forming strategic partnerships, which will also help them broaden their service offering and expand market share. The market is also expected to be highly competitive for incumbent players with the constant emergence of new entrants.
Mastercard
Mastercard is one of the leading players in the market network tokenization. Mastercard offers a host of tokenization solutions that include card tokenization, mobile tokenization and digital tokenization. Tokenization payment processing services offered by MasterCard help to simplify the payment process at the same time, it enhances the payment security and customer convenience. Mastercard has form alliances with several entities, which has also helped in strengthening its position and also offers an integrated tokenization solution to its customers.
Visa
Visa is another leading Network Tokenisation Market provider. Visa also offers a range of tokenization services, which includes Visa Token Service. The token service provided by Visa helps to generate unique tokens that can replace sensitive card information during transactions, which also helps in enhancing security. At the same time, it also helps reduce fraud. Visa is also working on adopting a continuum innovation process to enhance its tokenization platform and has a prominent existence in the market. It is also catering to the tokenization needs of both financial organizations and merchants and is working to achieve seamless payments through tokenization.
Key Companies in the Network Tokenisation Market Include:
Network Tokenisation Industry Developments
The Network Tokenization Market is anticipated to grow significantly from 2024 to 2032, reaching an estimated valuation of 123.7 billion USD by 2032. This growth is attributed to the increasing adoption of tokenization technology by various industries, including financial services, supply chain management, and healthcare. Tokenization involves converting traditional assets into digital tokens, which represent ownership or access rights. This process enhances security, transparency, and efficiency in asset management and trading. Recent developments in the market include the launch of new tokenization platforms and partnerships between technology providers and industry leaders. For instance, in 2023, IBM partnered with Tokeny Solutions to offer a tokenization platform for digital asset issuance and management. Such collaborations are expected to drive market growth in the coming years.
Network Tokenisation Market Segmentation Insights
Network Tokenisation Market Use Case Outlook
Network Tokenisation Market Network Type Outlook
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Public Blockchains
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Private Blockchains
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Hybrid Blockchains
Network Tokenisation Market Token Type Outlook
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Security Tokens
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Utility Tokens
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Stablecoins
Network Tokenisation Market Business Model Outlook
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Software-as-a-Service (SaaS)
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Platform-as-a-Service (PaaS)
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Infrastructure-as-a-Service (IaaS)
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Consulting and Services
Network Tokenisation Market Tokenisation Mechanism Outlook
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On-Chain
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Off-Chain
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Hybrid
Network Tokenisation Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
8.49 (USD Billion) |
| Market Size 2023 |
11.1 (USD Billion) |
| Market Size 2032 |
123.7 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
30.72% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
KonaI, Entrust, SecureKey, Idemia (formerly Oberthur Technologies), Gemalto (now Thales), Network International, Mastercard, Cryptomathic, Giesecke+Devrient, Thales, IDEMIA, Kudelski, FIME, Oberthur Technologies, Scytáles |
| Segments Covered |
Use Case, Network Type, Token Type, Business Model, Tokenisation Mechanism, Regional |
| Key Market Opportunities |
Growing demand for secure and efficient network connectivityIncreasing adoption of cloud and edge computing technologiesProliferating Internet of Things IoT devices and applicationsNeed for enhanced data privacy and compliance.Emergence of new use cases in finance healthcare and supply chain management |
| Key Market Dynamics |
Growing Adoption of Digital AssetsRising Demand for Enhanced SecurityGovernment Regulations and ComplianceCollaboration and PartnershipsTechnological Advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Network Tokenisation Market is expected to reach a value of USD 11.1 billion in 2023 and is projected to grow at a CAGR of 30.72% to reach USD 123.7 billion by 2032.
North America is expected to dominate the Network Tokenisation Market throughout the forecast period. The region's dominance can be attributed to the presence of a large number of technology companies and financial institutions that are actively investing in network tokenization solutions.
The key growth drivers of the Network Tokenisation Market include the increasing adoption of digital payments, the need for improved security and fraud prevention, and the growing popularity of cryptocurrencies.
Network Tokenisation has a wide range of applications, including payment processing, identity management, supply chain management, and healthcare.
Some of the key competitors in the Network Tokenisation Market include IBM, Microsoft, Amazon Web Services, Oracle, and Gemalto.
The Network Tokenisation Market faces several challenges, including the lack of standardization, security concerns, and regulatory uncertainty.
Some of the key trends in the Network Tokenisation Market include the increasing adoption of blockchain technology, the development of new use cases, and the emergence of new players.
The future outlook of the Network Tokenisation Market is positive. The market is expected to continue to grow at a rapid pace in the coming years, driven by the increasing adoption of digital payments and the growing popularity of cryptocurrencies.
The key opportunities for growth in the Network Tokenisation Market include the development of new use cases, the expansion into new markets, and the formation of partnerships with other players in the ecosystem.
The key challenges that the Network Tokenisation Market will face in the future include the lack of standardization, security concerns, and regulatory uncertainty.
