Applicant Tracking System Market Report by Deployment (On-premises, Cloud), Organization Size (Small and Medium-sized Enterprises, Large Enterprises), Component (Software, Services), End-User (BFSI, IT and Telecommunications, Government and Public Sector,

Applicant Tracking System Market Report by Deployment (On-premises, Cloud), Organization Size (Small and Medium-sized Enterprises, Large Enterprises), Component (Software, Services), End-User (BFSI, IT and Telecommunications, Government and Public Sector, Retail, Manufacturing, Healthcare and Life Sciences, and Others), and Region 2024-2032

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:
Market Growth and Size: The market is witnessing stable growth, driven by increasing demand for efficient recruitment processes, recent technological advancements, and widespread adoption of applicant tracking system (ATS) solutions across a broad range of industries.
Major Market Drivers: Key drivers influencing the market growth include digital transformation across industries, the rise in remote work and global hiring, the need for compliance with employment laws, and integration with other HR technologies.
Technological Advancements: Recent innovations in technology, such as the integration of AI and machine learning (ML) for improved candidate screening and predictive analytics, are fueling the market growth. Furthermore, the adoption of cloud-based solutions due to their scalability and flexibility is driving the market growth.
Industry Applications: The market is experiencing high demand for ATS in BFSI, IT and telecommunication, government and public sector, retail, manufacturing, healthcare, and life sciences.
Key Market Trends: The key market trends involve the increasing use of mobile-friendly and user-centric ATS platforms. Additionally, the rising emphasis on data analytics and reporting capabilities, enabling organizations to make data-driven hiring decisions, is bolstering the market growth.
Geographical Trends: Various regions are showing rapid growth, driven by technological infrastructure, regulatory compliance, expanding economies, and digitalization.
Competitive Landscape: The market is characterized by a mix of established players and emerging companies that are innovating and expanding their offerings. Furthermore, they are engaged in mergers, acquisitions, and partnerships to expand market reach and enhance technological capabilities.
Challenges and Opportunities: The market faces various challenges, such as addressing data privacy concerns and adapting to varying regional requirements. However, technological innovation, expansion to emerging markets, and development of industry specific ATS solutions are creating new opportunities for the market growth.

Applicant Tracking System Market Trends:
The rapid digital transformation and automation

The integration of digital technologies into all areas of a business, fundamentally changing how they operate and deliver value to customers, is a significant factor driving the market growth. Organizations are undergoing digital transformation, owing to the need for automating traditional, manual processes. In line with this, the ATS represents a critical tool that aids in automating tasks, such as posting job listings, sorting through applications, and tracking the progress of candidates. It not only streamlines the hiring process but also allows organizations to focus on more strategic tasks, such as candidate engagement and talent retention. Furthermore, automation through ATS also minimizes human errors, ensuring a more reliable and consistent recruitment process.

Increasing demand for efficient recruitment processes

The escalating demand for efficient recruitment processes is a pivotal factor propelling the market growth. Companies are seeking to optimize their recruitment processes to acquire top talent swiftly and efficiently. ATS systems cater to this need by streamlining various stages of the hiring process, such as posting job openings and sorting applications based on predefined criteria. It reduces the time and effort involved in finding suitable candidates, which is particularly vital in industries facing high turnover rates or those needing to scale their workforce rapidly. Moreover, ATS systems help in maintaining a structured and organized recruitment process, ensuring that all candidates are assessed fairly and consistently. It is crucial to reduce biases and maintain a professional standard in hiring practices.

Rising remote working culture and global hiring

The rise in remote work and hiring across the globe is significantly influencing the market growth. Companies are no longer confined to local talent pools and can attract candidates from across the globe. This expansion in the geographic scope of recruitment necessitates a more robust system to manage a larger and more diverse set of applications. ATS systems are ideally suited to address these challenges by enabling efficient handling and processing of applications from various regions and time zones. They provide a centralized platform where recruiters can access candidate information, track application progress, and communicate with candidates regardless of their location. Furthermore, ATS systems can be equipped with language translation and localization features, making them more adaptable to global hiring needs.

The increasing demand for compliance with employment laws and regulations

Employment laws are becoming increasingly complex and varied across different jurisdictions, which is prompting companies to adopt recruitment processes that comply with legal requirements. In line with this, ATS systems can be programmed to adhere to employment laws, reducing the risk of non-compliance and potential legal repercussions. They can help in maintaining equal employment opportunity practices by ensuring that all candidates are evaluated based on standardized criteria, thereby reducing the risk of discriminatory hiring practices. Furthermore, ATS systems can also be configured to retain application records for the required period, complying with data retention laws. Additionally, they can be updated to reflect changes in employment legislation, ensuring that the recruitment process remains compliant over time.

Integration with HR technology

ATS systems are increasingly being integrated with other HR management tools, such as payroll systems, performance management software, onboarding platforms, and employee engagement tools. It facilitates a holistic approach to manage the employee lifecycle, from recruitment to retirement. Furthermore, having a unified system allows seamless data flow between different HR functions, which aids in improving efficiency and reducing the likelihood of errors. In addition, information can be automatically transferred from the ATS to the onboarding and payroll systems once a candidate is hired, thus streamlining the transition from candidate to employee. Additionally, ATS integration with other HR tools allows for better data analytics, enabling organizations to gain deeper insights into their recruitment efficiency and employee performance.

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.

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.

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.

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.

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.

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

Key Questions Answered in This Report

1. What was the size of the global applicant tracking system market in 2023?
2. What is the expected growth rate of the global applicant tracking system market during 2024-2032?
3. What has been the impact of COVID-19 on the global applicant tracking system market?
4. What are the key factors driving the global applicant tracking system market?
5. What is the breakup of the global applicant tracking system market based on the deployment?
6. What is the breakup of the global applicant tracking system market based on organization size?
7. What is the breakup of the global applicant tracking system market based on the component?
8. What is the breakup of the global applicant tracking system market based on the end-user?
9. What are the key regions in the global applicant tracking system market?
10. Who are the key players/companies in the global applicant tracking system market?