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Applicant Tracking System Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud-based and On-premise), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By End-user (BFSI, IT & Telecom, Manufacturing, Retail & Consumer Goods, Healthcare, and Others), and Regional Forecast, 2023 – 2030

Last Updated: May 27, 2024 | Format: PDF | Report ID: FBI108826

 

KEY MARKET INSIGHTS

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The global applicant tracking system market size was valued at USD 14.14 billion in 2022 and is projected to grow from USD 15.03 billion in 2023 to USD 26.24 billion by 2030, exhibiting a CAGR of 8.3% during the forecast period.


An Applicant Tracking System (ATS) is a software tool that aids recruiters and hiring managers in modernizing the hiring process and finding the right candidate for their job listings. ATS helps HR managers collect essential data about applicants and organize everything in one place. These systems are designed to improve the efficiency and effectiveness of the recruitment process by automating many tasks, including parsing resumes, searching for keywords, and managing applicant data. Thus, the main job of an ATS is to automate the recruitment process by tracing and organizing candidates' data.


COVID-19 IMPACT


Rising Remote Work among Various Organizations during COVID-19 Aided Market Growth


The COVID-19 pandemic had a significant impact on the market. There were many job seekers in the market due to the pandemic. Meanwhile, social distancing norms forced many job seekers to apply on websites that used the applicant tracking system software to avoid getting infected while attending face-to-face interviews. These systems were crucial in facilitating remote recruitment by allowing remote access to a candidate’s data, video interview integrations, and collaborative assessment tools.


Furthermore, the pandemic highlighted the importance of data-driven decision-making in recruitment. ATS tools offer better data analytics and reporting capabilities. These capabilities help companies assess their hiring strategies and make adjustments as needed. Many organizations adopted virtual skill assessments, video interviews, and AI-based candidate evaluations. Applicant tracking system incorporated these features to streamline the remote hiring process. Thus, recruiters started focusing on virtual hiring strategies to meet their organizations' hiring demands.


LATEST TRENDS


Increasing Implementation of Cloud-based Recruitment Solutions among Enterprises to Fuel Market Growth


The cloud computing architecture is often used due to its powerful and flexible infrastructure. Many companies are turning to cloud solutions for more accessible data storage as they provide access to remote servers over the Internet and virtually unlimited computing power. Using a cloud-based approach allows a business to manage all its applications as it provides complicated analytics that keeps running in the background. SMEs are continually updating their applications and infrastructure using cloud-based platforms, such as Infrastructure as a Service (IaaS) and Software as a Service (SaaS). Cloud-based security solutions decrease the need for on-premises safety applications and depend on cloud services to defend data, applications, users, and devices. Thus, this factor will promote the adoption of applicant tracking system.


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DRIVING FACTORS


Enhanced Candidate Experience Through Streamlined Process to Drive Market Growth


A candidate monitoring system can help companies provide a better candidate experience and reduce their dissatisfaction. It provides a quicker application process, mechanism for applicants to track the status of their applications, and improved communication during the recruitment process. Hiring managers and recruiters can use dashboards and notifications to enhance their communication with the candidates. Systematic monitoring and adherence to the schedule agreed upon by the HR team will result in a positive candidate experience. Therefore, applicant tracking system software ensures that recruiters and candidates maintain a healthy and pleasant relationship. These factors will boost the market's growth in the upcoming years.


RESTRAINING FACTORS


Lack of Skills among HR Professionals May Hinder Market Growth


The nature of recruitment and selection is significantly influenced by the advancements in the recruitment software. With an ever-evolving landscape, the recruitment sector requires an ever-changing skillset to meet the changing nature of work across all sectors. Therefore, the HR personnel faces challenges in operating the applicant tracking system software as they do not have the skills required to operate it. Recruiting staff need proper training and education to use this software effectively. Therefore, the lack of skills among HR professionals is expected to restrain the applicant tracking system market growth.


SEGMENTATION


By Deployment Analysis 


Rising Demand for Low-Cost ATS On-Premises Infrastructure to Drive Market Growth


Based on deployment, the market is segmented into cloud-based and on-premises.


The on-premises segment dominates with the highest market share. The need for low-cost ATS deployment for on-premises infrastructure is driving the market development. Organizations have complete control over the data stored on their own servers, which can be especially appealing for those dealing with sensitive information or operating in highly regulated industries. Thus, this factor will boost the global market growth.


Additionally, the cloud-based segment is predicted to record the highest CAGR during the forecast period. Using cloud services allows users to retrieve and access information anytime, anywhere. Furthermore, more tasks can be done, functionalities can be added, and multiple communication channels can be streamlined with the help of cloud solutions. Through a combination of cloud services, applicant tracking system allows users to continue working using an active Internet connection and computing device. Therefore, these factors will play a vital role in driving the growth of the market.


By Enterprise Type Analysis


Adoption of ATS Solutions to Rise in Large Enterprises to Simplify Hiring Process


By enterprise type, the market is bifurcated into large enterprises and SMEs.


The large enterprise segment dominated with the highest global applicant tracking system market share. Large enterprises are engaging in partnerships and collaborations with ATS vendors to ensure data security and support system migration. These organizations are deploying ATS and growing their business by hiring candidates through job postings and identifying specific skills and capabilities that align with their goals and values. These companies need a support system to help them through the hiring process, and an applicant tracking system can simplify the collection, storage, and management of various applications. Thus, this factor will boosts the segment’s growth.


Additionally, the SMEs segment is expected to record the highest CAGR during the forecast period. Small and medium-sized businesses are using ATS to reduce costs and avoid operating with large budgets, saving time and money. It also increases communication between applicants and hiring managers, and completes tasks efficiently, which manual systems cannot do. Therefore, these factors will play a vital role in driving the market growth.


By End-user Analysis


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Rising Need to Reduce Costs to Boost Integration of ATS Software in BFSI Sector


Based on end-user, the market is categorized into BFSI, IT & telecom, manufacturing, retail & consumer goods, healthcare, and others.


The BFSI segment held a larger market share in 2022. The segment’s growth can be attributed to increased competition and rising demand for cost reduction to boost the company's profits. Candidates in the BFSI sector are constantly burdened to meet monthly & daily targets and keep up with the modern economic trends. This pressure often leads to large attrition rates. Financial firms are constantly recruiting talented professionals to stay ahead in the modest BFSI industry. Therefore, BFSI companies are anticipated to be major contributors to the ATS market during the forecast period.


Furthermore, the IT & telecom segment is anticipated to record the highest CAGR during the forecast period. High candidate strength and growing global demand for talent are driving this segment's growth. Job opportunities in the IT & telecommunications sector are increasing due to the non-stop demand for competent and qualified applicants as well as the rapid development of technology. To meet the growing job demand, IT & telecommunication solution providers are deploying ATS software to fill the skills gap. Thus, this factor will promote the segment’s growth.


REGIONAL INSIGHTS


In terms of region, the global market is being studied across five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further segmented into leading countries.


North America Applicant Tracking System Market Size, 2022 (USD Billion)

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North America holds the largest share of the global market. The region's growth is driven by the growing adoption of digital strategies that are focused on new and innovative technologies. The region is considered the most significant revenue contributor in the ATS market as most of the major companies in the world have their headquarters here. Additionally, companies in the region prioritize streamlining recruitment processes and reducing manual tasks, making ATS an attractive solution. Hence, the increasing digitization in region is driving the market’s growth.


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Asia Pacific is expected to grow rapidly during the forecast period. Increased collaborations and digitalization of businesses are driving the regional market's growth. Significant growth in business with the U.S. over the past decade has led to the high adoption of applicant tracking system software in the region. Therefore, the increasing economic importance of this software has directly impacted the regional market’s growth.


Europe is expected to showcase steady growth over the forecast period. Improving candidate experience is a common goal in the European recruitment process. ATS can enhance communication, provide a user-friendly application process, and offer transparency, all contributing to a positive candidate experience. Thus, these systems are becoming increasingly popular among European businesses seeking to streamline and improve their talent acquisition efforts.


Likewise, South America is showing significant growth in its market due to the increasing awareness of the benefits that ATS can offer businesses, such as improved efficiency and reduced costs. Moreover, the regional market’s growth is attributed to the increasing demand for automation and digitalization in the recruitment process. Many multinational companies in South America are using ATS as part of their global recruitment strategies. This has contributed to the spread of the ATS technology in the region.


In addition, the market in the Middle East & Africa might showcase promising growth in the coming years due to increased government funding to promote digitization initiatives.


KEY INDUSTRY PLAYERS


Market Players to Focus On Implementing Merger & Acquisition Strategies to Increase Their Business Operations


The top market players are focused on expanding their geographical footprint by introducing industry-specific solutions. These players are strategically collaborating and acquiring local players to gain a strong grip in various regions. Moreover, they are launching new products to attract and retain their customer base. Also, continuous investments in the research and development of products are augmenting the market’s growth. Thus, by adopting such corporate strategies, players are trying to sustain their competitiveness in the market.


List of Key Companies Profiled:



  • IBM Corporation (U.S.)

  • iCIMS (U.S.)

  • Oracle Corporation (Germany)

  • PeopleFluent (U.S.)

  • Cornerstone (U.S.)

  • Workday (U.S.)

  • Bullhorn, Inc. (U.S.)

  • Jobvite (U.S.)

  • ADP, Inc. (U.S.)

  • SAP (Germany)


KEY INDUSTRY DEVELOPMENTS:



  • June 2023: IBM Corporation announced the acquisition of Apptio Inc., a firm providing actionable economic and operational insights for enterprise IT. The acquisition of Apptio will accelerate the development of IBM's IT automation abilities and enable business leaders to deliver enhanced business value through their technology investments.

  • August 2023: RChilli announced a new RCR (RChilli Candidate Recharge) feature. With RCR, the firm is changing the way applicant data is reprocessed in the Applicant Tracking System, ensuring an efficient and seamless experience for both ATS end users and providers.

  • March 2023: Jobvite, a talent acquisition service provider, introduced its Evolve Talent Acquisition Suite to offer enterprises a unified solution set of contributions to streamline compound challenges through the recruiting lifecycle.

  • March 2023: Paradox announced the launch of Conversational ATS to revolutionize the high-volume hiring process by delivering the best frontline candidate and hiring manager experience.

  • October 2022: ICIMS introduced new iCIMS Advanced Analytics innovations to help talent acquisition teams gain unprecedented talent intelligence, automate more tasks, and engage current employees in designing their career opportunities.


REPORT COVERAGE


An Infographic Representation of Applicant Tracking System Market

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The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and top applications of the product. Besides, it offers insights into the latest applicant tracking system market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.


Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2017-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2017-2021



Growth Rate



CAGR of 8.3% from 2023 to 2030



Unit



Value (USD Billion)



 


 


 


 


 


 


 


 


 


 


 


 


 


 


Segmentation



By Deployment



  • Cloud-based

  • On-premise


By Enterprise Type



  • Large Enterprises

  • Small & Medium Enterprises


By End-user



  • BFSI

  • IT & Telecom

  • Manufacturing

  • Retail & Consumer Goods

  • Healthcare

  • Others (Government, etc.)


By Region



  • North America (By Deployment, By Enterprise Type, By End-user, and By Country)

    • U.S. (By End-user)

    • Canada (By End-user)

    • Mexico (By End-user)



  • South America (By Deployment, By Enterprise Type, By End-user, and By Country)

    • Brazil (By End-user)

    • Argentina (By End-user)

    • Rest of South America



  • Europe (By Deployment, By Enterprise Type, By End-user, and By Country)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Russia (By End-user)

    • Benelux (By End-user)

    • Nordics (By End-user)

    • Rest of Europe



  • Middle East & Africa (By Deployment, By Enterprise Type, By End-user, and By Country)

    • Turkey (By End-user)

    • Israel (By End-user)

    • GCC (By End-user)

    • South Africa (By End-user)

    • North Africa (By End-user)

    • Rest of the Middle East & Africa



  • Asia Pacific (By Deployment, By Enterprise Type, By End-user, and By Country)

    • China (By End-user)

    • India (By End-user)

    • Japan (By End-user)

    • South Korea (By End-user)

    • ASEAN (By End-user)

    • Oceania (By End-user)

    • Rest of Asia Pacific








Frequently Asked Questions

The market is projected to reach a valuation of USD 26.24 billion by 2030.

In 2022, the market was valued at USD 14.14 billion.

The market is projected to record a CAGR of 8.3% during the forecast period.

The BFSI segment led the market.

Enhanced candidate experience through a streamlined process across the globe is a key factor driving the market growth.

IBM Corporation, iCIMS, Oracle Corporation, Peoplefluent, Cornerstone, Workday, BullHorn, Inc., Jobvite, ADP, Inc., and SAP are the top players in the market.

North America holds the highest market share.

By enterprise type, the small & medium segment is expected to record a highest CAGR during the forecast period.

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