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The US applicant tracking systems (ATS) market size is forecast to increase by USD 146 million at a CAGR of 5.4% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, the increasing emphasis on streamlining human resources outsourcing functions has made cost-effective and less time-consuming ATS solutions an essential tool for businesses. Secondly, the growing enrollment of foreign students in US universities necessitates the use of advanced ATS systems to manage the complex recruitment process using HR software. These systems enable seamless handling of international applications, ensuring compliance with visa regulations and facilitating efficient communication with candidates. Overall, the market growth is underpinned by the need for efficient and effective talent acquisition strategies in today's competitive business landscape.
In the US market, Applicant Tracking Systems (ATS) have become essential tools for both recruiters and job seekers in the dynamic world of remote work. These systems streamline the recruitment process by managing applicant data, resume submissions, and recruitment requirements through applicant tracking software, room scheduling software, and recruitment software. Advanced ATS solutions employ artificial intelligence and machine learning to analyze candidate data, KPIs, and data analytics to ensure data-driven recruitment. Recruiters can access visual dashboards to monitor job openings, interview scheduling, and onboarding progress. ATS solutions are available on-cloud and on-premises, offering flexibility for various professional services and managed services. Electronic handling of recruitment requirements and resumes reduces the need for paperwork and manual processes. Internet job posting and job boards are integrated into ATS, making it easier for job seekers to apply for positions and for recruiters to find potential candidates. AgileATS solutions cater to the evolving needs of businesses, ensuring efficient and effective recruitment processes.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The cloud-based segment is estimated to witness significant growth during the forecast period. The market in the US has witnessed significant growth in recent years, driven by the increasing trend of remote work and evolving work dynamics. Recruitment software, including applicant tracking software, room scheduling software, and recruitment companies, have become essential tools for HR functions in managing the recruitment lifecycle.
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The cloud-based segment was the largest segment and was valued at USD 312.90 million in 2018. Cloud-based ATS, such as Oracle Taleo Cloud and IBM Kenexa Talent Acquisition Suite, are increasingly preferred due to their ease of electronic handling, one-time subscription costs, and effective data backup. Key performance indicators (KPIs) and data analytics are crucial for recruiters and hiring managers to evaluate candidate data and optimize recruitment requirements. Hence, such factors are fuelling the growth of this segment during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Cost-effective and less time-consuming is notably driving market growth. In the US market, Applicant Tracking Systems (ATS) have revolutionized IT service management (ITSM) departments' recruitment processes, particularly in sectors requiring IT skills and software knowledge, such as Consumer Goods, Manufacturing, Consulting, and SMEs. ATS functions as a centralized database for storing applicant resumes and profiles, enabling data-driven recruitment through automated resume screening.
This streamlined approach bypasses traditional methods like internet job posting and manual scrutinizing, saving time and resources. Moreover, cloud-based hiring solutions have gained popularity due to the cloud computing model's flexibility and cost-effectiveness. Network security strategies ensure data privacy, while visual dashboards offer insights into recruitment metrics. AgileATS, onboarding, managed services, and professional services further enhance the ATS market's value proposition. Thus, such factors are driving the growth of the market during the forecast period.
Increasing use of social media is the key trend in the market. The IT skills and software knowledge required in IT departments have driven significant growth in the Applicant Tracking Systems (ATS) market in the US. The increasing use of social media for job postings and recruitment in industries such as Consumer Goods, Manufacturing, Consulting, and SMEs, has led to the adoption of cloud-based hiring solutions and the cloud computing model.
Network security strategies are crucial in managing data storage for these systems. Data-driven recruitment strategies are facilitated through visual dashboards and AgileATS, enabling proactive onboarding and managed services. Professional services and onboarding processes are further enhanced through the integration of ATS with Internet job posting platforms. Thus, such trends will shape the growth of the market during the forecast period.
Data security and privacy concerns is the major challenge that affects the growth of the market. In the US market, IT departments in various sectors, including Consumer Goods, Manufacturing, Consulting, and SMEs, are increasingly adopting cloud-based hiring solutions for their Applicant Tracking Systems (ATS). This shift is driven by the cost-effectiveness, accessibility, and agility offered by cloud computing model. IT skills and software knowledge are essential for implementing and managing these systems.
Network security strategies are paramount to ensure data security, as the sensitive information stored within ATS includes personally identifiable data. Cloud-based ATS provide data-driven recruitment with visual dashboards, enabling increased productivity and collaboration. Onboarding, managed services, and professional services are additional benefits offered by these solutions. AgileATS facilitate efficient HR processes, while Internet job posting streamlines the recruitment process. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
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.
Arcoro: The company offers applicant tracking systems (ATS), which quickly attract, identify, and hire the best candidates.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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.
Applicant Tracking Systems (ATS) have become an integral part of the recruitment process in the US. These systems enable employers to manage job applications efficiently and effectively. The market for ATS in the US is dynamic and growing, with key players such as Workday, Oracle, and SAP offering comprehensive solutions. These systems facilitate the recruitment team to screen resumes, shortlist candidates, and schedule interviews. They also provide analytics and reporting features to help recruiters make informed decisions. Additionally, ATS can integrate with other HR systems, such as performance management and onboarding, providing a seamless recruitment-to-hire process. The use of artificial intelligence and machine learning in ATS further enhances their capabilities, allowing for more accurate candidate matching and reducing time-to-hire. The market for ATS in the US is expected to continue growing due to the increasing demand for efficient recruitment processes and the continuous advancements in technology.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.4% |
Market growth 2024-2028 |
USD 146 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.1 |
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., Employ Inc., GreenhoUSe Software Inc., Hireology Inc., iCIMS Inc., International BUSiness Machines Corp., JobDiva Inc., Jobvite Inc., Oracle Corp., Paycor HCM Inc., PrismHR Inc., SAP SE, Silkroad Technology Inc., SwipeClock LLC, Symphony Talent LLC, and Workday Inc. |
Market dynamics |
Parent market analysis, market trends , market report , market forecast , 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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