Applicant Tracking System Market Size:
The global applicant tracking system market size reached US$ 2.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.5 Billion by 2032, exhibiting a growth rate (CAGR) of 8.5% during 2024-2032. The market is growing rapidly driven by escalating digital transformation and automation, increasing demand for efficient recruitment processes, rising remote working culture and global hiring, increasing need for compliance with employment laws and regulations, and integration with broader HR technology platforms.
Report Attribute
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Key Statistics
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Base Year
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2023
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Forecast Years
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2024-2032
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Historical Years
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2018-2023
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Market Size in 2023
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US$ 2.7 Billion |
Market Forecast in 2032
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US$ 5.5 Billion |
Market Growth Rate 2024-2032 |
8.5% |
Applicant Tracking System Market Analysis:
- Market Growth and Size: The market is witnessing stable growth, driven by increasing demand for efficient recruitment processes, recent technological advancements, and widespread adoption of applicant tracking system (ATS) solutions across a broad range of industries.
- Major Market Drivers: Key drivers influencing the market growth include digital transformation across industries, the rise in remote work and global hiring, the need for compliance with employment laws, and integration with other HR technologies.
- Technological Advancements: Recent innovations in technology, such as the integration of AI and machine learning (ML) for improved candidate screening and predictive analytics, are fueling the market growth. Furthermore, the adoption of cloud-based solutions due to their scalability and flexibility is driving the market growth.
- Industry Applications: The market is experiencing high demand for ATS in BFSI, IT and telecommunication, government and public sector, retail, manufacturing, healthcare, and life sciences.
- Key Market Trends: The key market trends involve the increasing use of mobile-friendly and user-centric ATS platforms. Additionally, the rising emphasis on data analytics and reporting capabilities, enabling organizations to make data-driven hiring decisions, is bolstering the market growth.
- Geographical Trends: Various regions are showing rapid growth, driven by technological infrastructure, regulatory compliance, expanding economies, and digitalization.
- Competitive Landscape: The market is characterized by a mix of established players and emerging companies that are innovating and expanding their offerings. Furthermore, they are engaged in mergers, acquisitions, and partnerships to expand market reach and enhance technological capabilities.
- Challenges and Opportunities: The market faces various challenges, such as addressing data privacy concerns and adapting to varying regional requirements. However, technological innovation, expansion to emerging markets, and development of industry specific ATS solutions are creating new opportunities for the market growth.
Applicant Tracking System Market Trends:
The rapid digital transformation and automation
The integration of digital technologies into all areas of a business, fundamentally changing how they operate and deliver value to customers, is a significant factor driving the market growth. Organizations are undergoing digital transformation, owing to the need for automating traditional, manual processes. In line with this, the ATS represents a critical tool that aids in automating tasks, such as posting job listings, sorting through applications, and tracking the progress of candidates. It not only streamlines the hiring process but also allows organizations to focus on more strategic tasks, such as candidate engagement and talent retention. Furthermore, automation through ATS also minimizes human errors, ensuring a more reliable and consistent recruitment process.
Increasing demand for efficient recruitment processes
The escalating demand for efficient recruitment processes is a pivotal factor propelling the market growth. Companies are seeking to optimize their recruitment processes to acquire top talent swiftly and efficiently. ATS systems cater to this need by streamlining various stages of the hiring process, such as posting job openings and sorting applications based on predefined criteria. It reduces the time and effort involved in finding suitable candidates, which is particularly vital in industries facing high turnover rates or those needing to scale their workforce rapidly. Moreover, ATS systems help in maintaining a structured and organized recruitment process, ensuring that all candidates are assessed fairly and consistently. It is crucial to reduce biases and maintain a professional standard in hiring practices.
Rising remote working culture and global hiring
The rise in remote work and hiring across the globe is significantly influencing the market growth. Companies are no longer confined to local talent pools and can attract candidates from across the globe. This expansion in the geographic scope of recruitment necessitates a more robust system to manage a larger and more diverse set of applications. ATS systems are ideally suited to address these challenges by enabling efficient handling and processing of applications from various regions and time zones. They provide a centralized platform where recruiters can access candidate information, track application progress, and communicate with candidates regardless of their location. Furthermore, ATS systems can be equipped with language translation and localization features, making them more adaptable to global hiring needs.
The increasing demand for compliance with employment laws and regulations
Employment laws are becoming increasingly complex and varied across different jurisdictions, which is prompting companies to adopt recruitment processes that comply with legal requirements. In line with this, ATS systems can be programmed to adhere to employment laws, reducing the risk of non-compliance and potential legal repercussions. They can help in maintaining equal employment opportunity practices by ensuring that all candidates are evaluated based on standardized criteria, thereby reducing the risk of discriminatory hiring practices. Furthermore, ATS systems can also be configured to retain application records for the required period, complying with data retention laws. Additionally, they can be updated to reflect changes in employment legislation, ensuring that the recruitment process remains compliant over time.
Integration with HR technology
ATS systems are increasingly being integrated with other HR management tools, such as payroll systems, performance management software, onboarding platforms, and employee engagement tools. It facilitates a holistic approach to manage the employee lifecycle, from recruitment to retirement. Furthermore, having a unified system allows seamless data flow between different HR functions, which aids in improving efficiency and reducing the likelihood of errors. In addition, information can be automatically transferred from the ATS to the onboarding and payroll systems once a candidate is hired, thus streamlining the transition from candidate to employee. Additionally, ATS integration with other HR tools allows for better data analytics, enabling organizations to gain deeper insights into their recruitment efficiency and employee performance.
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
Applicant Tracking System Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on deployment, organization size, component, and end-user.
Breakup by Deployment:
Note: Information in the above chart consists of dummy data and is only shown here for representation purpose. Kindly contact us for the actual market size and trends.
On-premises accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the deployment. This includes on-premises and cloud. According to the report, on-premises represented the largest segment.
The on-premises segment caters to organizations that prefer to host software on their own servers. It is chosen by businesses with stringent data security and privacy requirements, as it provides greater control over the ATS environment. Furthermore, on-premises ATS solutions are particularly appealing to large enterprises with the necessary infrastructure and IT support to manage and maintain the system in-house. Besides this, it allows for more customization, enabling companies to tailor the ATS to their specific processes and workflows.
The cloud-based segment is driven by its flexibility, scalability, and cost-effectiveness. It is hosted on the provider's servers and accessed via the internet, making it easily accessible from anywhere and on any device. Furthermore, cloud-based deployment is popular among small to medium-sized businesses due to its lower upfront costs, as it typically operates on a subscription-based model and does not require extensive IT infrastructure or support. Additionally, it offers automatic updates and maintenance, ensuring that users always have access to the latest features and security enhancements.
Breakup by Organization Size:
- Small and Medium-sized Enterprises
- Large Enterprises
Small and medium-sized enterprises hold the largest share in the industry
A detailed breakup and analysis of the market based on the organization size have also been provided in the report. This includes small and medium-sized enterprises and large enterprises. According to the report, small and medium-sized enterprises represented the largest segment.
Small and medium-sized enterprises (SMEs) utilize ATS solutions that are cost-effective, user-friendly, and require minimal IT infrastructure. Furthermore, they typically seek ATS platforms that are easy to implement and manage, with flexible pricing models, such as pay-as-you-go or subscription-based services. Additionally, cloud-based ATS solutions are becoming highly popular among small and medium-sized enterprises due to their scalability and easy accessibility.
Large enterprises require ATS platforms with advanced features such as AI-driven analytics, robust reporting tools, and the ability to handle a high volume of applications and complex recruitment workflows. Furthermore, they often prefer solutions that offer a high degree of customization to align with their specific recruitment processes and corporate branding. Additionally, the ATS for large enterprises often includes global capabilities, which support multiple languages and compliance with various regional employment laws.
Breakup by Component:
Software represents the leading market segment
The report has provided a detailed breakup and analysis of the market based on the component. This includes software and services. According to the report, software represented the largest segment.
The software segment encompasses the core platform and functionalities that organizations use to manage their recruitment processes. It includes the essential features of ATS, such as job posting, application tracking, candidate screening, interview scheduling, and communication tools. The software component is the backbone of any ATS, providing the interface and algorithms necessary for efficient and effective talent acquisition.
The service segment includes the additional services provided by ATS vendors that complement the core software functionality. It can range from implementation and integration assistance, customization, training, and support to ongoing maintenance and updates. Furthermore, the service component is crucial, particularly for organizations that may not have the in-house expertise to fully leverage the capabilities of ATS software.
Breakup by End-User:
- BFSI
- IT and Telecommunications
- Government and Public Sector
- Retail
- Manufacturing
- Healthcare and Life Sciences
- Others
IT and telecommunications hold the largest share in the industry
A detailed breakup and analysis of the market based on the end-user have also been provided in the report. This includes BFSI, IT and telecommunications, government and public sector, retail, manufacturing, healthcare and life sciences, and others. According to the report, IT and telecommunications represented the largest segment.
The BFSI sector utilizes ATS solutions that are tailored to handle the industry's specific needs, including compliance with various financial regulations and standards. Furthermore, the focus is on attracting candidates with specialized skills and qualifications essential for roles in banking, finance, and insurance. Additionally, ATS platforms used in BFSI often emphasize advanced security features to protect confidential information.
IT and telecommunications sectors often deal with high volumes of applications, especially for technical and specialized positions. The ATS solutions for this sector are designed to efficiently manage large applicant pools, identify candidates with specific technical skills, and accelerate the hiring process to keep pace with the fast-moving tech environment.
The government and public sector have specific compliance and regulatory standards for hiring, including adherence to equal opportunity and transparency guidelines. ATS solutions in this segment are designed to ensure these compliance requirements are met, with features that support fair and unbiased candidate screening and selection processes.
Retail businesses often experience high turnover rates and seasonal hiring spikes, necessitating an ATS that can handle quick and efficient recruitment processes. It utilizes ATS systems that are geared towards facilitating rapid screening and onboarding of staff, especially for customer service and sales roles. They often include features for managing walk-in interviews and group hiring events, which are common in retail.
The manufacturing sector has a significant need for candidates with specific skill sets, such as machine operation and quality control. The ATS solutions for this sector are focused on identifying candidates with these technical qualifications and experience. They also facilitate efficient management of a large number of applications, particularly for positions in high demand.
Healthcare and life sciences require ATS systems that are tailored to meet the stringent requirements of hiring highly skilled professionals. It demands ATS solutions that can handle the complexities of recruiting for various roles, from clinicians and nurses to research scientists and technical staff. Furthermore, the integration of ATS systems with credential verification systems and compliance with healthcare privacy regulations is supporting the market growth.
Breakup by Region:
- North America
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Chile
- Peru
- Others
- Middle East and Africa
- Turkey
- Saudi Arabia
- Iran
- United Arab Emirates
- Others
North America leads the market, accounting for the largest applicant tracking system market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others); and the Middle East and Africa (Turkey, Saudi Arabia, Iran, United Arab Emirates, and others). According to the report, North America accounted for the largest market share.
North America is characterized by a strong presence of multinational corporations, advanced technology infrastructure, and a highly competitive job market, all of which contribute to the widespread adoption of ATS. Furthermore, the region is distinguished by its early adoption of new technologies, including AI and machine learning, in recruitment processes.
Companies in Europe are increasingly adopting ATS solutions to streamline their hiring processes and ensure compliance with various regulatory requirements. Furthermore, the rising demand for cloud-based ATS in the region, offering flexibility and scalability to businesses, is bolstering the market growth.
The Asia Pacific region is experiencing rapid growth in the ATS market, driven by the expanding economies, growing number of startups, and increasing digitalization of businesses. Furthermore, the region presents a vast and varied landscape for ATS adoption, with companies seeking efficient recruitment solutions to manage large candidate pools and address the diverse cultural and regulatory environments.
Companies in Latin America are turning to ATS to enhance their recruitment efficiency and compete more effectively in the global market. Furthermore, the region's diverse economic landscape, coupled with the increasing focus on improving the candidate experience, is driving the market growth.
Middle East and Africa are emerging as significant market for ATS, with an increasing number of businesses recognizing the benefits of digitalizing their recruitment processes. Furthermore, they are adopting ATS solutions to manage the growing influx of expatriate and local talent, comply with regional employment laws, and enhance the efficiency of recruitment processes.
Leading Key Players in the Applicant Tracking System Industry:
Key players are actively engaging in various strategic initiatives to strengthen their market position and meet the evolving needs of organizations. They are continuously innovating and upgrading their software solutions to incorporate advanced technologies like artificial intelligence (AI), machine learning (ML), and natural language processing (NLP). Additionally, leading companies are focusing on user experience, ensuring their platforms are intuitive, easy to navigate, and accessible across various devices. They are also expanding their services globally, adapting their systems to support multiple languages and complying with regional employment laws and regulations. Besides this, companies are also investing in cloud-based solutions, offering scalable and flexible ATS options to businesses of all sizes.
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- ApplicantStack
- ATS Ondemand
- Clearcompany
- Greenhouse Software
- IBM
- iCIMS
- JazzHR
- Jobvite
- Oracle
- SAP SE
- SilkRoad Technology
- SmartRecruiters
- Tribepad
- Ultimate Software
- Zoho
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
Latest News:
- In October 2022, iCIMS announced its plan to acquire SkillSurvey to lower the time and cost of the company customers on reference checking.
- In March 2022, Jobvite introduced Evolve Talent Acquisition Suite to simplify complex challenges across the entire recruiting process.
- In June 2023, Greenhouse Software was ranked at the top by G2 in 14 categories, including applicant tracking system.
Applicant Tracking System Market Report Scope:
Report Features |
Details |
Base Year of the Analysis |
2023 |
Historical Period |
2018-2023 |
Forecast Period |
2024-2032 |
Units |
US$ Billion |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
- Deployment
- Organization Size
- Component
- End-User
- Region
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Deployments Covered |
On-premises, Cloud |
Organization Sizes Covered |
Small and Medium-sized Enterprises, Large Enterprises |
Components Covered |
Software, Services |
End-Users Covered |
BFSI, IT and Telecommunications, Government and Public Sector, Retail, Manufacturing, Healthcare and Life Sciences, Others |
Regions Covered |
Asia Pacific, Europe, North America, Latin America, Middle East and Africa |
Countries Covered |
United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico, Argentina, Colombia, Chile, Peru, Turkey, Saudi Arabia, Iran, United Arab Emirates |
Companies Covered |
ApplicantStack, ATS Ondemand, Clearcompany, Greenhouse Software, IBM, iCIMS, JazzHR, Jobvite, Oracle, SAP SE, SilkRoad Technology, SmartRecruiters, Tribepad, Ultimate Software, Zoho, etc.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.) |
Customization Scope |
10% Free Customization |
Report Price and Purchase Option |
Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899 |
Post-Sale Analyst Support |
10-12 Weeks |
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the applicant tracking system market from 2018-2032.
- The research report provides the latest information on the market drivers, challenges, and opportunities in the global applicant tracking system market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the applicant tracking system industry and its attractiveness.
- The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.