USD 2.4 billion
Applicant Tracking System Market Size, Share, Growth Analysis, By Component (Software, Services), By Deployment, By Size, By End Use, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45E2276 |
Region:
Global |
Published Date: December, 2024
Pages:
163
|Tables:
117
|Figures:
70
Applicant Tracking System Market Insights
Applicant Tracking System Market size was valued at USD 2.56 Billion in 2023 and is poised to grow from USD 2.72 Billion in 2024 to USD 4.15 Billion by 2032, growing at a CAGR of 6.2% during the forecast period (2025-2032).
Applicant tracking system organizes and automates much of a company's hiring operations. These systems leverage machine learning and artificial intelligence to methodically sort and filter applications, sending tailored follow-up communications to candidates and closely examining submissions for traits that align with open roles. Due to time investments, financial costs, and inherent human preconceptions, manual scrutinization of candidate profiles has become an unsustainable endeavor for recruiting.
The system has seen a surge in adoption by governments and businesses due to its recruitment automation capabilities. By leveraging natural language processing and data analytics, applicant tracking software streamlines the screening and job posting process on employment sites. This limits human errors and bias that can creep into manual reviews. The market growth in applicant tracking systems can be attributed to the diverse software solutions utilized across an array of industries, including banking, finance and insurance, manufacturing, telecommunications and information technology, consumer goods and retail, healthcare and life sciences, energy and utilities, as well as transportation and logistics. The amplified demand for automation within various sectors is driving the necessity for application tracking system. It can potentially diminish labor expenses while simultaneously increasing the probability of recruiting talented candidates. ATS affords the capability to rapidly process applications through vast troves of data amassed within a synergistic assembly of databases and workflow administration platforms.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
on-premises
Fastest Growth
cloud-based
Growth Rate
6.7% CAGR
Global Applicant Tracking System Market ($ Bn)
Country Share for North America Region (%)
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Applicant Tracking System Market Segmental Analysis
Global Applicant Tracking System Market is segmented by Component, Deployment, Size, End Use and Region. Based on Component, the market is segmented into Software, Services, Training and Support, Maintenance. Based on Deployment, the market is segmented into On Premises, Cloud. Based on Size, the market is segmented into SMEs, Large Enterprises. Based on End Use, the market is segmented into IT and Telecom, BFSI, Healthcare, Retail. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Deployment
Based on deployment type, the on-premises segment dominates the market with the largest earned revenue. Organizations have long relied on on-premises based applicant tracking systems for affordable deployment and stringent data governance needs. On-premises infrastructure provides complete autonomy over sensitive hiring records, especially vital in regulated fields, many firms remain loyal to this low-cost, high-control solution. However, evolving priorities increasingly pull talent acquisition toward the cloud's scalability and mobility. Whether firmer compliance demands or a more agile selection process, pressures are mounting. Thus, premises vendors must adapt offerings to retain relevance against cloud competitors, as the future likely holds a more balanced, hybrid model blending the best of both worlds.
The cloud-based deployment service is estimated to witness the fastest growth during the forecast period. Cloud services empower individuals to readily obtain and utilize information whenever necessary, wherever available. Furthermore, additional obligations can be fulfilled, functionalities augmented, and an array of interaction avenues streamlined through employing cloud alternatives. An applicant tracking system facilitates continued productivity for users with an active Internet linkage and computing apparatus, accomplishing this through an amalgamation of cloud offerings. Accordingly, these determinants will play a pivotal function in propelling market advancement. Organizations have the ability to oversee every application submitted thanks to the insights gleaned from complicated background analytics only possible through a cloud-based infrastructure's implementation.
Analysis by End-user
Based on end-user, the BFSI segment constituted the largest share of the market. This sector is growing due to intensifying competition and the rising need for cost reduction to bolster corporate earnings. Employees in the BFSI domain frequently grapple with meeting monthly and daily objectives while keeping pace with evolving financial tendencies, a pressure which commonly results in high attrition. Financial institutions persistently enlist gifted individuals to preserve their advantage in the modest yet challenging BFSI space. Subsequently, analysts predict BFSI organizations will significantly drive the ATS industry in the coming years as they seek techniques to deal with fluctuations and hold top performers.
The IT and telecommunications industry is positioned to observe the most substantial increases over the projected time frame, other significant developments are surfacing across converging sectors. An abundance of capable prospects and expanding worldwide necessity for expertise will catalyze advancement within this dynamic domain. Proliferating opportunities in the technologies sphere occur alongside relentless requirements for proficient, qualified individuals and the relentless march of progress. To adequately populate positions and cultivate experience internally, IT and telecom businesses increasingly resort to automated recruitment systems to remedy experience and skills shortfalls. Consequently, this adaptation will serve to stimulate continuing growth within the segment. Meanwhile, cross-discipline collaborations will generate novel varieties of work demanding diverse, integrated perspectives.
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Applicant Tracking System Market Regional Insights
North America dominates the worldwide market predominantly due to the pervasive digitization embraced by organizations based here. Longstanding tech giants and rising startups alike have pioneered innovative solutions in North America, especially in the US, streamlining formerly laborious hiring practices. Their constant progression incorporates predictive algorithms and intelligent chatbots to assist recruiters, selection increasingly automated whilst retaining a human touch. Additionally, digitization within the area addresses recruiting tasks formerly conducted manually. Therefore, the growing digital transformations sweeping the realm propel market growth's momentum. Complex sentences mingle with simpler ones as varied phrasing casts this regional perspective upon global hiring's evolving landscape.
Asia Pacific is anticipated to experience substantial expansion in the coming years. Growing connectivity among organizations together with advancing digitization of enterprises has been propelling the regional market upwards. Considerable increases in commercial dealings with America throughout the previous ten years have brought about widespread acceptance of applicant tracking solutions across the area. Therefore, the ever-rising financial value placed on such programs has had a straight bearing on stimulating development locally. Meanwhile, collaborative initiatives to streamline recruitment procedures have augmented perplexity, with certain deployments embracing varied lengths and intricacy to match differing client situations.
Global Applicant Tracking System Market By Geography
- Largest
- Fastest
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Applicant Tracking System Market Dynamics
Drivers
- Growing Implementation of Automation
Automated hiring and recruitment capabilities continue advancing each year, bringing both promise and peril to job seekers and employers alike. Individualized tracking of applicants, algorithmic resume sorting, personalized data collection portals, and digitized meet-and-greet scheduling will surely sway more companies to invest in such systems. Efficiency gains and productivity boosts will propel most of the application tracking platforms during the forecast period.
- Remote Working Opportunities Post Pandemic
The COVID-19 pandemic shook the foundations of the job market. While social distancing mandates locked down physical workplaces and interviews, innovative applicant tracking systems unlocked remote recruitment possibilities. Through virtual access to candidates' profiles and video call functions, along with collaborative evaluation apps, these digital hiring solutions were instrumental in maintaining recruitment momentum during the pandemic, facilitating connections between opportunistic employers and qualified contenders wherever they were sheltering. This remote hiring has remained a key driver post pandemic as most companies still prefer to conduct the hiring process remotely.
Restraints
- Lack of Skills Professionals
Human resources face struggles using applicant tracking systems as current expertise inadequately operates such programs. Proper instruction and learning are essential for staff to utilize this software knowledgeably. Anticipated insufficient abilities among HR specialists may hamper applicant tracking system market expansion unless skills rapidly reform. With evolving workplaces, the recruiting field demands a shifting skillset addressing altering job duties across industries.
- High Cost of Implementation
One of the major limiting factors constraining the growth of the applicant tracking system market is the high initial financial investment associated with the establishment and operation of some of applicant tracking system technologies. In most cases of machinery, software, or infrastructure, the costs required are beyond the means of the emerging economies and some small businesses. This may serve to delay if not prevent some new entrants into the market.
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Applicant Tracking System Market Competitive Landscape
The top market players have primarily centered their efforts on increasing their global reach by bringing localized, industry-focused solutions to more areas. Some of these major companies have strategically joined forces with or purchased smaller, regional providers to solidify their positions across various locales. Furthermore, they regularly unveil novel offerings in attempts to both attract and retain clients. Simultaneously, sustained investments in innovating current products through research and development have additionally sped the market's progression. Therefore, with such corporate tactics, these players aim to preserve their competitiveness going forward in a competitive space.
Top Player’s Company Profile
- International Business Machines Corporation (IBM): United States
- iCIMS: United States
- Oracle: United States
- PeopleFluent: United States
- Cornerstone: United States
- Workday: United States
- Bullhorn, Inc.: United States
- UKG Inc.: United States
- ADP, Inc: United States
- SAP: Germany
- BambooHR LLC: United States
- Paycor, Inc.: United States
- Zoho Corporation Pvt. Ltd: India
Recent Developments
- In August 2023, RChilli announced a new RCR, RChilli Candidate Recharge. With RCR, the company is recharging the way applicant data is reprocessed in the applicant tracking system. The applicant tracking system users, and the providers will surely enjoy the recharge.
- In June 2023, IBM Corporation has announced the acquisition of Apptio Inc., a provider of action-ready economic and operational insights for enterprise IT. The acquisition of Apptio is expected to accelerate the company’s development of IT automation capabilities.
- In March 2023, Jobvite, a pioneer in recruitment, introduced the next generation of its recruiting suite, named Evolve Talent Acquisitions Suite. This will offer users the market’s most robust set of solutions that streamline complex tasks from source to hire throughout the recruiting lifecycle.
Applicant Tracking System Key Market Trends
- Increasing Acceptance for Cloud Based Recruitment Solutions: Numerous enterprises are transforming to cloud solutions for more accessible data storage as they furnish access to distant servers through the Internet and in essence limitless processing power. Cloud-based security solutions reduce the necessity for on-premises safety applications and depend on cloud services to defend information, applications, users, and devices. Thus, the adoption of applicant tracking systems will be encouraged.
- Growing Improvements in Candidate Experience: While candidate monitoring systems can expedite application workflows and keep job seekers apprised of status updates, fostering genuine connection remains integral. When recruiters acknowledge candidates as individuals worthy of empathy, it creates mutual benefits. Providing transparent yet considerate updates, tailored to each person’s situation, can help reduce uncertainty and foster a more positive experience. Meanwhile, hiring managers who embrace technology to strengthen rapport build goodwill. By making candidates feel heard through attentive follow-ups respecting agreed-upon timelines, organizations signal their commitment to improving lives.
Applicant Tracking System Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, AI technologies are radically transforming talent acquisition, modernizing recruitment through automated screening, preemptive assessments, and targeted listings. Providers are reacting with inventive solutions and pliable configurations customized for varied fields like information systems, medicine, and merchandise movement. The migration to cloud-based talent choosing platforms is uniquely noteworthy, as their elastic, scalable design allows integration with supplementary human resources instruments. For enormous companies constantly topping their workforce, these evolving answers have evolved into a necessity, despite unsolved problems relating to the sophisticated nature of establishing such advanced selection arrangements. These factors are expected to boost the demand for application tracking systems substantially over the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 2.4 billion |
| Market size value in 2031 | USD 4.2 billion |
| Growth Rate | 6.7% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Applicant Tracking System Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Applicant Tracking System Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Applicant Tracking System Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Applicant Tracking System Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Applicant Tracking System Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Applicant Tracking System Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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