The global applicant tracking system market size was valued at USD 1.56 billion in 2022. It is projected to reach USD 3.40 billion by 2031, growing at a CAGR of 9.05% during the forecast period (2023–2031).
An applicant tracking system organizes and automates the hiring process. Applicant tracking systems use machine learning and artificial intelligence to sort and filter applications, send follow-up emails, and study candidates. Manual analysis of candidate submissions is becoming obsolete due to time, expense, and bias issues. An ATS provides actionable data and reduces recruiting time and expenses. To manage a company's hiring and recruitment process, an applicant tracking system gathers and stores candidates’ resumes in its database. After indexing and scanning, the system saves resumes in a database, providing recruiters with an online look at job seekers. Companies use applicant tracking systems (ATS) to hire workers more quickly, post job openings on websites or job boards, review resumes, and email invitations to interviews with qualified candidates.
|Market Size||USD 3.40 billion by 2031|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Individual applicant tracking, automated resume ranking, customized input forms, and interview scheduling are just a few of the automated features that will likely entice businesses to purchase the product. The system's automated capabilities boost efficiency and productivity, propelling the application tracking system (ATS) market forward during the forecast period. The move from traditional to online or e-recruitment influences the applicant tracking system industry. Facebook has 2.8 billion active members, and LinkedIn has 740 million. According to Glassdoor, 79% of recent job seekers used social media. Recruiting automation has progressed beyond newspaper ads to social media recruiting. Recruiters use software-enabled hiring automation due to the success of the sales and marketing industry. New technologies are emerging to address traditional recruitment challenges, from candidate sourcing to final hiring decisions.
Many candidates have less-than-ideal experiences during their job searches. With an applicant tracking system, businesses can provide a better candidate experience and prevent candidate resentment. It provides an easier way to apply for jobs, a way for applicants to check the status of their applications, and improved communication throughout the hiring process. Using applicant tracking software is a simple way to guarantee prompt communication. For hiring managers and recruiters, dashboards and notifications help keep communication in their minds. When HR teams clarified the post-interview steps and followed up with candidates in line with the promised timeline, the Report found that positive candidate experiences increased by 52%. As a result, ATS software ensures that recruiters and candidates have a good working relationship.
A changing set of skills are needed to ensure relevance with the job postings due to technological advancements affecting HR. Due to a lack of appropriate IT skills and software knowledge, HR managers have trouble fully implementing modern ATS solutions. For the HR staff to use the ATS effectively, they must receive the appropriate training. Therefore, it is anticipated that a challenge for successfully implementing ATS software across enterprises will be the lack of skill and limited technical expertise. To switch from a network perimeter-based strategy to a user and application-based security model, the model compels organizations' IT departments to review their network security strategies. Redesigning and creating web and mobile applications may take time and effort. As most networks were not developed with cybersecurity in mind, a thorough network analysis of services, network equipment, and traffic is required to transition to the new IT security model.
The widespread adoption of the cloud computing model results from its robust and adaptable infrastructure. With remote server access via the internet and limitless computing power, cloud solutions are becoming increasingly popular among businesses to streamline data storage. Organizations can manage all applications thanks to the cloud-based model's implementation because it offers complicated analytics that runs in the background. As SMEs prepare to address the issues of talent search and rising job applications, the market for cloud-based ATS solutions is predicted to grow, presenting growth opportunities.
The global applicant tracking system market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America is the most significant shareholder in the global applicant tracking system market and is expected to grow at a CAGR of 8.7% during the forecast period. The U.S. and Canada are included in the analysis of the applicant tracking system market in North America. North America currently holds a 40% share of the ATS market and is expected to maintain this position shortly. The large North American applicant tracking system industry is due to the presence of many corporate headquarters. Simply put, this region's workforce is the most tech-savvy. To acquire a competitive advantage and grow operations, most organizations are focused on inventing new technology. In the manufacturing industry, cost reductions associated with local production and automation are projected to drive the market.
Asia Pacific is expected to grow fastest at a CAGR of 9.3% during the forecast period. China, India, Japan, Australia, and the rest of Asia-Pacific are all included in the analysis of the Asia-Pacific applicant tracking system market. Recruiting highly trained and qualified candidates in Asia-Pacific requires applicant monitoring software. Moreover, Asia-Pacific is rapidly industrializing, urbanizing, transforming agriculture, and diversifying its economy, increasing work prospects. With the migration of employees from farmland to cities, applicant tracking systems have become popular. China's demand for skilled labor is rising due to an aging population and strong growth in the service sector.
The market is segmented by component, deployment, organization size, and industry vertical.
Based on components, the global applicant tracking system market is bifurcated into software and service.
The software segment is the highest contributor to the market and is forecasted to grow at a CAGR of 9.2% during the forecast period. The increase is attributable to the software's flexibility in being modified and tailored to end-user needs. The program gathers and keeps track of resumes in its database so recruiters can easily access them. Even though they were developed for businesses, applicant tracking systems let organizations change the software to meet their needs. ATS software allows organizations to customize the software to meet the needs of their end-users while also being tailor-made. ATS features are frequently combined with workforce management in vendor-provided Human Capital Management (HCM) suites to manage the entire hiring process, from applicant tracking to employee life cycle management.
Based on deployment, the global applicant tracking system market is bifurcated into on-premise and cloud.
The cloud segment is the highest contributor to the market and is anticipated to grow at a CAGR of 9.1% during the forecast period. Cloud deployment offers greater flexibility, reduced costs, and better security. With a network-based or cloud-based application tracking system, anyone with an internet connection can access the system, eliminating the need to install software to access data and allowing recruiters to continue hiring without interruption. Cloud services are free to use and can be paid for as needed by the user. Organizations can gain from the cloud deployment model's quick deployment, scalability, and accessibility from any location. Adopting cloud services raises serious concerns about data security. As a result, businesses are turning to private and hybrid cloud solutions.
Based on organization size, the global applicant tracking system market is bifurcated into SMEs and large enterprises.
The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 8.9% during the forecast period. To enable secure data and support system migration, large enterprises choose to purchase from, work with, and partner with ATS providers. Large organizations are implementing ATS and growing their businesses through candidates and job openings, identifying particular competencies and skills aligned with their objectives and values. These businesses need a support system to assist them with the hiring process, and an applicant tracking system (ATS) can make it simple to collect, store, and manage applications.
Based on industry verticals, the global applicant tracking system market is bifurcated into BFSI, IT & telecommunication, manufacturing, and retail.
The IT & telecommunication segment is the highest contributor to the market and is expected to grow at a CAGR of 9% during the forecast period. Due to the growing demand for talent worldwide and the increasing number of candidates daily, the IT and telecommunications industry is expected to adopt applicant tracking systems. Further, the employment market in the IT and telecommunications sector is dynamic due to the fast-changing nature of technology and the constant need to hire qualified and skilled personnel. IT and telecommunications companies frequently use applicant tracking systems to deal with these issues.
The economic crisis brought on by the COVID-19 pandemic piqued companies' interest in applicant tracking system software even more. Despite the lockdown, the global recruitment software market grew by 4.54% year over year (YOY) in 2020. Filling hot positions to keep companies afloat was difficult due to social distancing and stay-at-home policies.
The go-to method for keeping the hiring process moving and protecting both recruiters and candidates was remote recruiting. A shift to virtual recruiting, on the other hand, necessitates robust applicant tracking techniques and feature-rich solutions. As a result, most businesses have adopted hiring automation and virtual interviewing tools such as Microsoft Teams, Skype, and Zoom, resulting in the growth of the applicant tracking system market.