Applicant Tracking System Market

Global Applicant Tracking System Market:

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.

Applicant Tracking System Market Analysis:

• Major Market Drivers: Increasing demand for efficient recruitment processes, recent technological advancements, and widespread adoption of applicant tracking system, are some of the prominent factors stimulating the market growth. ATS platforms automate various aspects of recruitment, such as resume screening, candidate communication, and interview scheduling. This automation reduces manual effort, saves time, and improves overall efficiency in the recruitment process, thereby further adding to the applicant tracking system market demand.
• Key Market Trends: The surging focus on improving the candidate experience, integration of artificial intelligence (AI) and machine learning (ML), remote hiring, and mobile recruiting are some of the major factors that are expected to escalate the market growth. In addition, many ATS vendors are shifting towards subscription-based pricing models and Software-as-a-Service (SaaS) delivery to offer more flexibility and scalability to their customers. This allows organizations to pay for the features and resources they need and scale their usage as their hiring needs fluctuate, which further supports the applicant system market growth.
• Competitive Landscape: Some of the leading applicant tracking system market companies are ApplicantStack, ATS Ondemand, Clearcompany, Greenhouse Software, IBM, iCIMS, JazzHR, Jobvite, Oracle, SAP SE, SilkRoad Technology, SmartRecruiters, Tribepad, Ultimate Software, and Zoho, among many others.
• Geographical Trends: According to the report, North America accounted for the largest market share. The region is home to many industries, including technology, finance, healthcare, and manufacturing, which are experiencing high demand for skilled talent. As companies compete to attract top candidates, they rely on ATS platforms to streamline their recruitment processes and gain a competitive edge in talent acquisition.
• Challenges and Opportunities: Rising competition with numerous vendors offering similar solutions, data privacy and security concerns, and adapting to varying requirements are some of the key challenges that the market is facing. However, the integration of artificial intelligence (AI) and automation presents significant applicant tracking system market opportunities for vendors to enhance their platforms. AI-powered features such as predictive analytics, chatbots for candidate engagement, and automated resume screening can help organizations streamline their recruitment processes and improve efficiency.
   

Applicant Tracking System Market Trends:

Rapid Digital Transformation and Automation

One of the key factors propelling the market growth is the integration of digital technology into every aspect of a business which fundamentally transforms how companies function and provide value to customers. ATS systems save recruiters a great deal of time and effort by automating various recruiting process tasks, including resume parsing, candidate screening, interview scheduling, and communication. For instance, in April 2024, HiBob launched Bob Hiring, an applicant tracking system (ATS) with complete integration that links employee, candidate, and business data to improve decision-making. Bob Hiring uses a robust, all-in-one HCM platform to seamlessly connect Bob Workforce Planning with the hiring process, matching hiring plans, and candidate screening to changing business objectives for an efficient workflow. These factors are further propelling the applicant tracking system market demand. Moreover, the potential of ATS platforms has been completely transformed by developments in automation and artificial intelligence (AI). Artificial intelligence (AI)-driven functionalities, like chatbots, natural language processing, predictive analytics, and automated applicant matching, improve the efficacy and efficiency of hiring procedures, allowing companies to find and connect with exceptional candidates more successfully. For instance, in March 2024, WorkLLama, a technology supplier of an AI-powered talent marketing, relationship management, and direct sourcing platform, launched an integrated Applicant Tracking System (ATS) that promises to revolutionize the recruiting environment. This cutting-edge update is intended to provide WorkLLama customers with a completely integrated technology solution that ensures top-tier customer and candidate experiences. 

Rising Remote Working Culture and Global Hiring

The remote work culture is experiencing major growth, further driving the demand for ATS systems for remote hiring. For instance, as of 2023, nearly 12.7% of the full-time employees work from home. In line with this, according to Upwork, approximately 32.6 million (22%), Americans are expected to work from home by 2025. ATS solutions facilitate seamless recruitment activities for enterprises across all geographic locations by providing features like remote onboarding functions, collaboration tools for distributed hiring teams, and virtual interview capabilities. Additionally, for companies looking to access a varied pool of candidates and leverage particular skill sets, the ability to hire personnel from anywhere in the world has grown in importance. For instance, in October 2023, Andela, a private marketplace for technical talent, launched Andela Talent Cloud, an integrated, end-to-end platform that connects global technologists with enterprises looking to increase capacity and skill sets. The Andela platform is an all-in-one, AI-driven solution that gives IT leaders comprehensive transparency into talent profiles and skill assessment results, allowing them to make educated and secure recruiting decisions. ATS platforms facilitate global talent acquisition by providing multilingual capabilities, international job posting options, and tools for managing candidates from different countries and time zones. These factors are further contributing to the market growth.

Integration with HR technology

The applicant tracking system (ATS) industry is expanding primarily due to its integration with HR technology. From finding candidates to hiring them, ATS platforms are important to the recruitment management process. Their usefulness and efficacy are increased when they are integrated with larger HR technology ecosystems. Data from job ads, candidate evaluations, and interviews flow seamlessly across the various stages of recruiting owing to the integration with HR technology. Streamlining minimizes manual labor and simplifies the hiring process, which is crucial for companies trying to quickly fill positions with exceptional candidates. For instance, in August 2023, ZipRecruiter, an online employment marketplace, partnered with UKG, a provider of HR, payroll, and workforce management solutions, in order to assist enterprise hiring. ZipRecruiter's collaboration with UKG adds another top player to its list of over 200 HCM suite and applicant tracking system (ATS) integrations. These factors are stimulating the industry’s growth. Moreover, integration promotes collaboration between recruiters, hiring managers, and other stakeholders involved in the recruitment process. Shared access to real-time data and communication tools facilitates collaboration, ensures alignment on candidate selection, and reduces delays in decision-making. For instance, in October 2023, JobSync, the leading Talent Acquisition Automation platform, partnered with Indeed Preferred Integrator partner, the global leader in job search. This new collaboration represents a turning point in the recruitment technology sector, providing a simplified and effective solution that connects Applicant Tracking Systems (ATSs) to Indeed's huge global job search network. These factors are further positively influencing the applicant system market forecast.

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:

• On-premises
• Cloud
   

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.

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.

According to the applicant system market overview, 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. In July 2023, Zalvis launched a fully functioning platform that provides a one-stop solution for all employment processes (ATS) for small and medium-sized organizations.

Breakup by Component:

• Software
• Services
   

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. For instance, in April 2024, TrackerRMS, ATS and CRM software solutions provider aimed at the recruitment business, collaborated with Daxtra, the premier developer of AI-powered solutions for the talent acquisition ecosystem.

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.

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.

Breakup by Region:

• North America
  • United States
  • Canada
• 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.

As per the applicant system market outlook, the growth of 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. For instance, in August 2022, Employ Inc., the parent company of JazzHR, Jobvite, and NXTThing RPO brands, acquired a San Francisco-based platform that combines applicant tracking system and candidate relationship management capabilities.

Competitive Landscape:

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.)

Applicant Tracking System Market Recent Developments:

• April 2024: HiBob launched Bob Hiring, a fully integrated Applicant Tracking System (ATS) that combines applicant, employee, and business data to improve decision-making.
• March 2024: WorkLLama, a technology supplier of an AI-powered talent marketing, relationship management, and direct sourcing platform, launched its latest innovation: an integrated Applicant Tracking System (ATS).
• March 2024: ZipRecruiter, a leading online employment marketplace, launched a new applicant tracking system (ATS) connection with iCIMS, a leading provider of talent acquisition (TA) technology.

Applicant Tracking System Market Report Scope:

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.