Applicant Tracking System Market

Global Applicant Tracking System Market Size (2024 to 2029)

The global applicant tracking system market is predicted to reach USD 2.56 billion in 2024 and USD 3.46 billion by 2029, growing at a CAGR of 6.2% during the forecast period.

An applicant tracking system collects and maintains the candidates' resumes in a database to keep track of an organization's recruitment and hiring process. After indexing and scanning, the system stores resume in a database and provides recruiters online access to applicant profiles. Businesses use applicant tracking systems to hire people more efficiently, publish job opportunities on a job board or website, evaluate resumes, and e-mail qualified applicants' interview invitations. 

Recruiting automation is making the method increasingly famous among government and private organizations. For example, the applicant tracking system automates the screening and publishing of job applications to various job boards; it decreases manual errors and bias using natural language processing and data mining. In addition, the convergence of several technologies in the applicant tracking system market has enabled the commercialization of software. This includes the adoption of artificial intelligence (AI) and cloud computing. 

Global Applicant Tracking System Market Drivers:

The growing importance of the recruitment process using advanced technology will likely propel the demand for the applicant tracking system market. Automation in recruiting makes a company's hiring process more efficient and better. It lets recruiters hire people based on how likely they are to do well on the job. About 94% of US organizations are ready to use AI and robotics in the next three years. Business leaders know how important it is to automate HR and hiring processes. In HR and talent acquisition, automation, and AI are becoming more popular. In fact, a LinkedIn survey on talent trends found that almost 35% of talent professionals and hiring authorities say that AI is the top trend affecting the hiring process. These things will likely drive the demand for the applicant tracking system software market during the forecast period. 

Global Applicant Tracking System Market Restraints:

Lack of relevant expertise and knowledge- Significantly altering the character of recruiting and selection improvements in recruitment software. With the advancement of technology to adapt to the changing scenario, the recruitment business must develop its skill set varying job characteristics across industries where a lack of skilled people is restraining the demand of the applicant tracking system market. Thus, HR recruiters confront obstacles and difficulties using applicant tracking systems because they lack IT expertise. In addition, the recruitment staff must receive adequate training and instruction to employ applicant tracking system software effectively. 

Impact of COVID-19 on the global applicant tracking system market:

COVID-19 has substantially impacted the market for applicant tracking systems worldwide. Due to the pandemic, there are more individuals seeking employment. Furthermore, as social distancing has been here for a while now, many job applicants are applying to sites that use applicant tracking system software to avoid in-person interviews. In addition, businesses are increasingly adopting technologically based recruitment solutions to facilitate distant hiring and assure business continuity. Hence, recruiters are emphasizing virtual hiring tactics to satisfy the organization's employment needs. 

GLOBAL APPLICANT TRACKING SYSTEM MARKET REPORT COVERAGE:

This research report on the global applicant tracking system market has been segmented and sub-segmented based on the component, deployment, organization, end use, and region.

Global Applicant Tracking System Market - By Component:

• Software

• Services

Based on components, the service segment is anticipated to hold major shares in the market. The services segment was further divided into many subtypes, of which integration and implementation services held the prime shares. To integrate ATS software with the current infrastructure, it is necessary to map the network and the files arriving from various sources. Execution consists of identifying network assets, analyzing security threats, designing security strategies and policies, training, implementing, and maintaining security. System integration entails integrating the applicant tracking system software into the security system plan of the client with minimal deviations from the specifications. Integration services play a crucial role in cyber security by decreasing risks, reducing complexity, and enhancing return on investment, increasing the company's long-term profit advantages. 

Global Applicant Tracking System Market - By Deployment:

• On-premises

• Cloud

In 2021, the on-premises segment led the ATS market, accounting for over 60% of global market revenue. The requirement to implement low-cost ATS for on-premises infrastructures promotes the industry's development, including software infrastructure, deployment permit communication, and corporate maintenance. 

Global Applicant Tracking System Market - By Organization:

• Small and medium enterprises

• Large enterprises

The adoption rate of applicant tracking system software in large organizations is believed to be greater than that of small and medium enterprises. Thus, the large enterprise segment holds prominent shares in the market. Large corporations are embracing ATS software to boost regional company operational efficiency. Nevertheless, huge firms seek candidates daily. Often the recruitment procedure is time-consuming and performed manually. The process must be automated to improve recruiting efficacy and candidate satisfaction, reducing cost, time, and labor and allowing major businesses to devote more resources to business-critical tasks for increased productivity. 

Global Applicant Tracking System Market - By End Use:

• IT & Telecommunication

• BFSI

• Healthcare & life sciences

• Consumer goods & retail

• Manufacturing 

• Others

In 2021, the IT and telecommunication segment was the most crucial part of the market, making up more than 24% of its revenue. This segment's growth is driven by the high quality of candidates and the growing need for talent worldwide. IT and telecommunication jobs are growing because of the constant demand for skilled and qualified people as technologies change quickly. IT and telecom solution providers are using ATS software to fill the skills gap to meet the rising job demand. 

The BSFI segment is expected to get a big piece of the pie over the next five years, with a more than 20% revenue share. The growth can be explained by the fact that there is more competition, and the business is cutting costs to make more money. Over the forecast period, the healthcare and life sciences segment is expected to have a high CAGR. The high growth can be explained by how easy it is to hire people without looking at each candidate's resume and how easy it Is to keep people's operations organized without spending hours looking at resumes by hand. 

Global Applicant Tracking System Market - By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

North America dominated the applicant tracking system market with a revenue share of over 40%. Developed nations like Canada and USA drive the market's expansion. With the rising use of digital tactics, North America is heading towards more advanced and innovative technology. Additionally, it invests more in cutting-edge technologies to improve operations and obtain a competitive edge. 

Asia Pacific is anticipated to experience the highest CAGR of 9.1% throughout the forecast period. The expansion of business alliances and digitalization is driving the expansion of the regional market. In addition, the substantial growth of business with the USA over the past decade has led to the widespread use of applicant tracking system software in the region. Its economic significance has directly affected the growth rate of applicant tracking systems in the region. 

KEY PLAYERS:

1. Oracle

2. IBM

3. ICIMS

4. People Fluent

5. Workday

6. Bullhorn

7. Ultimate Software

8. ADP

9. SAP 

10. Cornerstone

KEY MARKET PARTICIPANTS:

• In March 2022, Modern Hire released an AI-powered Automated Interview Creator. This technology would help recruiters and HR does their jobs better and more accurately and honestly, which would make the interview process more interesting for the people being interviewed. 

• In October 2021, Infinite Computer Solutions bought the talent acquisition site from International Business Machines Corporation. This is a program for finding and hiring new employees. With this purchase, Infinite Computer Solutions could offer customers a SaaS-based platform to find and attract top talent candidates and improve the hiring process. 

• In May 2022, Talroo Inc teamed up with JobSync LLC to make a recruitment platform. Through the partnership, Talroo Inc could easily add complete applications to the applicant tracking system, convert candidates and give employers quick access to several applications. Also, job seekers would find it easy to apply for jobs they want, and recruiters would be able to respond quickly to their applications making the process better for everyone. 

• In May 2022, Hire Logic got USD 4 million to grow its business in the hiring sector. As per reports, the company would have a system for tracking applicants and platforms for video conferencing. This would help large companies run structured interviews, make hiring decisions based on data, and rank candidate resumes.