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The US - applicant tracking (ATS) systems market size is estimated to grow at a CAGR of 5.31% between 2022 and 2027. The market size is forecast to increase by USD 137.04 million. The growth of the market depends on several factors, including a cost-effective and less time-consuming, growing emphasis on streamlining human resources functions and increasing enrollment of foreign students. An applicant tracking system is a solution that enables the electronic handling of recruitment requirements. The applicant tracking system software helps companies to recruit employees more efficiently.
This applicant tracking systems market report extensively covers market segmentation by deployment (cloud-based and on-premises), and end-user (financial service, technology, healthcare, retail, and government and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing enrollment of foreign students is the key factor driving the growth of the market. The higher education sector is one of the major end users of applicant tracking system software. The growing number of international students attending US colleges and universities has increased the demand for applicant tracking systems. With the increasing number of international students enrolled, there is a growing demand for a streamlined approach to student selection.
Furthermore, the university uses applicant tracking software for several applications, including the admission of foreign students. Universities are required to complete the entire selection process within a stipulated time, so they need to integrate their applicant tracking system into their recruiting system. Hence, the increasing number of foreign student enrollments is a major driver for the growth of the market during the forecast period.
Increasing use of social media is the primary trend in the market. The widespread use of social media in the talent management industry has led to increased business opportunities for US - applicant tracking (ATS) systems market players. The exchange of job postings via social networks such as LinkedIn and Facebook also stimulates US - applicant tracking systems market growth. The advent of social media in talent management has prompted hiring managers and recruiters to take a proactive approach. With the increasing use of social media networks, recruiters are able to pull information from multiple sources and build profiles of potential candidates.
Furthermore, many providers offer applicant tracking systems through social media recruitment. For example, Acceleration HR is an applicant tracking system provider that offers the HireCentric applicant tracking system integrated with social media sites such as Facebook and Twitter. Other well-known providers of applicant tracking systems with integrated social media recruitment features include iCIMS Inc. (iCIMS), Bullhorn Inc. (Bullhorn), Greenhouse Software Inc. (Greenhouse Software), etc Hence, the integration of social media recruitment features in applicant tracking systems will fuel the growth of the market during the forecast period.
Threat from open-source software is a challenge that affects the growth of the market. This open-source software allows users to customize applicant tracking software to suit their needs. The primary target audience for this free, open-source applicant tracking software is SMEs. Factors such as zero cost and (sometimes) low budgets lead SMEs to choose open-source applicant tracking software over paid applicant tracking software.
Moreover, open-source market players include OpenCATS, CandidATS, iKrut, Freshteam, SmartRecruiters, and Jobsoid. Due to the growing demand for applicant tracking software in the recruitment process, more such freeware is expected to enter the US - applicant tracking systems market in the future. Therefore, the availability of open-source applicant tracking software will create a significant price challenge that will impede the growth of the market during the forecast period.
The market share growth by the cloud-based segment will be significant during the forecast period. Deploying an on-cloud applicant tracking system gives recruiters easy access anytime and anywhere. Due to its cost-effectiveness, more and more organizations and institutions are expected to adopt cloud-based applicant tracking systems. With the spread of smartphones and the Internet, the demand for cloud-based applicant management systems is also increasing.
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The cloud-based segment showed a gradual increase in the market share of USD 303.26 million in 2017 and continued to grow by 2021. Factors such as ease of deployment, one-time subscription costs, ease of access, and effective data backup are driving the adoption of cloud-based applicant tracking systems over on-premise applicant tracking systems. Additionally, cloud-based applicant tracking systems require no initial setup or deployment of infrastructure within an organization or institution. Cloud-based US - applicant tracking systems market players offer continuous updates, allowing organizations and institutions to update their systems based on subscription plans. Hence, these factors will drive the growth of the segment during the forecast period.
Organizations in the financial service are undergoing digital transformation efforts to adapt their business models to market demands. The human resources process for financial services firms is not limited to hiring and recruiting candidates. In addition, they also provide training and development activities to improve candidate performance. Therefore, companies are focusing on streamlining HR functions and digitizing HR processes to save time. This will increase the adoption of application tracking systems, which will boost the growth of the market during the forecast period.
The Applicant Tracking Systems Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
US Applicant Tracking Systems Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The US applicant tracking systems market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
US Applicant Tracking Systems Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.31% |
Market growth 2023-2027 |
USD 137.04 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.49 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arcoro, Bamboo HR LLC, Bullhorn Inc., ClearCo. Inc., Cornerstone OnDemand Inc., Greenhouse Software Inc., Hireology Inc., iCIMS Inc., International Business Machines Corp., JobDiva Inc., Jobvite Inc., Oracle Corp., Paycor Inc., PrismHR Inc., SAP SE, Silkroad Technology Inc., SwipeClock LLC, Symphony Talent LLC, Workday Inc., and Employ Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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