US - Applicant Tracking Systems (ATS) Market by Deployment, End-user and Geography - Forecast and Analysis 2023-2027

US Applicant Tracking Systems (ATS) Market Forecast 2023-2027

The US Applicant Tracking Systems (ATS) Market size is forecast to increase by USD 137.04 million., at a CAGR of 5.31% between 2022 and 2027. The market's growth hinges on various factors, notably the need for cost-effective and time-efficient solutions, alongside the rising focus on streamlining human resources operations and the surge in foreign student enrollments. An integral solution in this regard is the applicant tracking system (ATS), facilitates the electronic management of recruitment needs. Leveraging ATS software, companies enhance their recruitment processes, enabling more efficient employee acquisition. By automating various tasks like resume screening and candidate tracking, ATS systems optimize hiring procedures, saving valuable time and resources. With organizations increasingly prioritizing efficiency and effectiveness in their recruitment endeavors, the demand for ATS solutions is poised to escalate, reflecting the evolving landscape of human resource management.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This 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.

Market Dynamics 

The market is driven by a surge in remote workers and the evolving work dynamics, demanding efficient talent acquisition solutions. The adoption of advanced room scheduling software and recruitment software is on the rise, enabling streamlined processes, software knowledge, IT skills, and effective management of candidate data. Trends include the integration of artificial intelligence and machine learning for enhanced candidate screening and improved data analytics for informed decision-making. Challenges include managing vast databases of resumes, ensuring compatibility with diverse job boards, and optimizing interview processes. The focus remains on data-driven recruitment, necessitating robust ATS solutions.

Key Market Driver

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. 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.

Significant Market Trends

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 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 will fuel the growth of the market during the forecast period.

Major Market Challenge 

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 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.

Market Customer Landscape

The report includes the adoption lifecycle of the market research and growth, 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 and forecasting strategies.

Customer Landscape

Market Segmentation By Deployment 

The market is experiencing significant growth, driven by factors such as the rise in remote workers and the evolving work dynamics. With the increasing reliance on technology in recruitment processes, ATS solutions have become indispensable, offering functionalities like room scheduling software and recruitment software. Leveraging artificial intelligence and machine learning, ATS platforms efficiently manage candidate data and enhance data analytics capabilities. These systems streamline various aspects of recruitment, from managing resumes and databases to facilitating interviews and onboarding processes. Moreover, with features like visual dashboards and data-driven recruitment, ATS solutions enable organizations to make informed hiring decisions and improve overall recruitment requirements handling efficiency.

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. 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 require no initial setup or deployment of infrastructure within an organization or institution. Cloud-based 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.

Market Segmentation By End-user

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.

Who are the Major Market Companies?

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.

• Silkroad Technology Inc.: The company offers application tracking system for recruiting and managing candidate relationships while providing exceptional recruitment experiences and gaining real time people insights.
• Workday Inc.: The company offers applicant tracking systems with AI and programmatic technologies.
• Employ Inc.: The company offers application tracking systems such as talent management that manage the full talent acquisition lifecycle and align hiring with business needs.
  

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 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
• SwipeClock LLC
• Symphony Talent LLC

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.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook 
  • Cloud-based
  • On-premises
• End-user Outlook 
  • Financial service
  • Technology
  • Healthcare
  • Retail
  • Government and others

Market Analyst Overview 

The market is witnessing significant growth fueled by various factors, such as the increasing reliance on cloud-based solutions and the evolving recruitment lifecycle. ATS platforms cater to diverse industries like IT and telecommunication, BFSI, automotive, and industrial manufacturing, offering streamlined electronic handling of recruitment processes. These systems provide a centralized database for managing job seekers, job openings, and websites postings, enhancing efficiency through automated features. With a focus on candidate experience and real-time notifications, ATS solutions empower HR teams and IT departments alike. Moreover, they address the growing demand for network security strategies with cloud-based hiring solutions and robust data storage capabilities, making them indispensable for consumer goods, manufacturing, consulting, and other large enterprises.

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 growth analysis, Market Forecasting, 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 the 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across US
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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