February 21, 2024
Ict

Applicant Tracking System Market Growth to Surge in Response to Rising Need for Streamlining Hiring Process

The applicant tracking system market refers to software solutions that help organizations manage recruitment processes more efficiently. Applicant tracking systems automate tasks related to vacancy posting, application collection and sorting, and candidate screening. They also offer features like applicant database management, skills match scoring, communication tools and analytics dashboards. Advantages of applicant tracking systems include faster time-to-hire, reduced recruitment costs, enhanced candidate experience, and improved compliance with hiring regulations. With growing business volumes and demand for skilled talent, applicant tracking systems have emerged as a handy tool for both small and large companies to facilitate their recruiting operations.

The global applicant tracking system market is estimated to be valued at US$ 2.67 billion in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period of 2023 to 2030.

Factors such as digitization of HR functions, rising mobile job applications, increasing use of artificial intelligence and automation in recruitment are fueling the demand for applicant tracking systems.

Key Takeaways
Key players operating in the applicant tracking system market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners), iCIMS Inc.

The key opportunities in the applicant tracking system market include growing adoption of cloud-based systems, rising employer focus on candidate experience management, and launch of advanced talent acquisition suites with predictive analytics capabilities.

The applicant tracking system market players are also expanding their geographical presence through partnerships and mergers & acquisitions. For instance, IBM acquired The Davey Tree Expert Company to strengthen its expertise in workforce management software.

Market Drivers
One of the key drivers for the applicant tracking system market is the growing need among companies to streamline their recruitment processes as volumes scale up. Manual and paper-based hiring methods are now inefficient, creating demand for automated talent acquisition tools.

Market Restraints
Data security concerns and the ongoing talent crunch in the IT industry pose challenges for growth of the applicant tracking system market. High implementation and maintenance costs can also deter small businesses from adopting these systems. However, the emergence of affordable cloud-based solutions is addressing such restraints.

Segment Analysis

The cloud/SaaS-based solution segment dominates the market currently owing to advantages like accessibility from anywhere using internet, automatic software updates, and low operational costs. These solutions allow applicants to submit applications through Web and mobile interfaces while allowing employers to manage candidates remotely. On-premise deployment segment also has a significant share due to security and customization benefits for large enterprise customers. By organization size, the large enterprises segment is leading currently as applicant tracking system becomes a critical part of HR functions and talent acquisition processes for organizations with over 1000 employees. SMBs are expected to be the fastest growing segment during the forecast period due to increasing acceptance of advanced recruiting tools by small businesses for gaining efficiencies.

Global Analysis

North America is the most advanced region in terms of applicant tracking system market adoption, holding the major share currently. The presence of major players and early adoption of advanced HR technologies by companies drive the market. Europe holds the second largest share with countries like UK and Germany rapidly adopting ATS for streamlining recruitment. Asia Pacific region is expected to witness the highest growth during the forecast period with China and India leading the market. Growing IT industries, business process outsourcing sectors and recruitment needs of startups in these countries will support market growth. Latin America and Middle East & Africa offer tremendous growth opportunities for vendors especially in the cloud-based solutions segment owing to developing economies and industries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it