April 24, 2024
Ict

Applicant Tracking System Market to Witness Significant Growth Owing to Growing Need for Automating Recruitment Processes

The applicant tracking system (ATS) market is poised to grow exponentially over the next decade driven by the rising need for streamlining and automating complex recruitment and hiring processes across organizations. Applicant tracking systems are cloud-based tools and platforms that allow enterprises to manage recruitment tasks more efficiently from initial job posting and screening of candidates through to onboarding of selected applicants. They help automate processes like sourcing, filtering, tracking communication with potential hires, online tests and assessments as well as scheduling of interviews. This significantly reduces time spent on administrative hiring tasks by HR teams, allowing them to focus more on high-value workforce planning and engagement initiatives.

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

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. These vendors offer advanced ATS tools with various features integrated for sourcing, screening, onboarding candidates and managing the entire recruiting process virtually. The growing demand for streamlining complex recruitment workflows and increasing digitalization of HR functions are driving growth opportunities for ATS providers globally. By 2028, over 60% of mid-to-large sized organizations are expected to adopt cloud-based ATS to manage talent acquisition more effectively. Geographically, North America dominated the applicant tracking system market in 2021 led by high demand from enterprises in the US. However, Asia Pacific is anticipated to emerge as the fastest growing regional market over the next 6 years supported by increasing recruitment needs of enterprises across industries.

Market Drivers and Restraint
The key driver for the growth of applicant tracking market is the need for automating and streamlining complex recruitment processes. As the job roles are becoming more specialized, the volume of applications received by companies is increasing exponentially making it difficult for recruiters or HR executives to screen profiles manually. An ATS helps automate repetitive tasks like screening resumes, scheduling interviews and communicating with candidates. This reduces workload of HR teams and frees up their time for value adding activities like candidate engagement. However, high implementation and maintenance cost of advanced applicant tracking solutions remains a key restraint. Mid-sized companies may not find it feasible to invest in costly ATS especially during economic downturns when hiring needs are reduced. Data security is another concern as applicant tracking systems store confidential candidate information that needs robust protection against cyber threats.

Segment Analysis
The global applicant tracking system market is divided into deployment, organization size, vertical and component sub-segments. Among deployment types, the cloud-based applicant tracking system sub-segment currently dominates the market. This is because cloud-based ATS solutions offer cost-effective features to recruiters and hiring managers without hampering scalability. In terms of organization size, large enterprises contribute maximum revenue to this market. Large enterprises have complex hiring needs and thus prefer advanced ATS to streamline their recruitment workflows.

Global Analysis
North America holds the highest share in the applicant tracking system market currently. High adoption of advanced HR technologies among enterprises drives the North America applicant tracking system market. Moreover, presence of leading ATS vendors such as IBM, Oracle, and Workday in the US and Canada boosts the regional market growth. Asia Pacific is expected to witness the fastest growth during the forecast period. This is attributed to growing digital transformation of HR functions and rising investments by ATS vendors in emerging Asia Pacific countries. Furthermore, initiatives by governments in Asia to promote adoption of recruitment automation solutions will support the applicant tracking system market expansion in the region.

*Note:

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