Applicant Tracking System (ATS) Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, UK, Canada, Germany - Size and Forecast 2024-2028

Applicant Tracking System Market Size 2024-2028

The applicant tracking system market size is anticipated to grow by USD 714.3 million at a CAGR of 5.25% between 2023 and 2028. Market growth is driven by the need to streamline recruitment processes, the increasing adoption of cloud-based services, and the digitalization of HR divisions. Enhanced efficiency in talent acquisition and data-driven decision-making also contribute to the market's expansion.

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

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Market Dynamics and Customer Landscape

The market is evolving with advancements like indexing and scanning, streamlining job openings management. These systems enable companies to post job applications on websites and job boards, review resumes, and send interview invitations efficiently. Automation in recruiting reduces manual errors and bias, enhancing the hiring process. Innovations in natural language processing, like Modern Hire's AI-driven Automated Interview Creator (AIC), empower recruiters and HR professionals in large enterprises. Collaborations and partnerships are common in the industry, ensuring secure data handling and leveraging seed funding for expansion. The ATS market's capabilities cater to various sectors such as BFSI, consumer goods & retail, healthcare & life sciences, and energy & utilities, driving automation in labor recruitment.

 Key Market Driver

The advantages of applicant tracking systems are driving the growth of the market. The applicant tracking system is based on three main recruitment parameters, i.e., time to hire, cost per hire, and quality of hire, which make it superior to traditional recruiting methods. The applicant tracking system is a powerful sourcing tool used in human capital management to provide a simplified and efficient recruiting process. Compared to the applicant tracker system, traditional recruitment methods are highly time-consuming. This trend is influenced by factors such as natural language processing, Modern Hire, AI-driven Automated Interview Creator (AIC), recruiters, HR, large enterprises, acquiring, collaborating, partnering, secure data, seed funding, and recruitment platform capabilities.

However, the applicant tracking systems software is highly cost-efficient compared with the traditional approach, as there are various package models available in the market. Various price strategies are available, taking into account employer requirements. Some of them are salary per recruit, salary per position, salary per module, and salary per employee. Hence, employers/recruiters have a wide variety of cost plans to choose from. Flexible cost benefits and high ROI compared with the traditional approach are expected to drive the growth of the market.

Significant Market Trends

The mobile-based applicant tracking systems apps are a primary trend in the market growth. With the growing popularity of smartphones globally, demand for mobile applicant tracking system applications is increasing. The extensive use of mobile devices by applicants has encouraged recruiters to post job notifications on mobile-compatible platforms. The use of mobile apps enables a candidate in a remote location to connect with an employer.

Moreover, the use of mobile devices for job hunting has witnessed a rise since the Internet boom, especially in emerging countries such as India, South Korea, and China. Therefore, more companies are expected to combine mobile-friendly apps into their applicant tracking systems offerings which in turn will propel the market in focus during the forecast period.

Major Market Restrain

The limitations of applicant tracking systems are major challenges in the market growth. There are many limitations to applicant tracking systems and it is only with human intervention that they can be overcome. Some of the crucial limitations of applicant tracking systems are their inability to read different formats of files, overlooking ideal candidates, the inability to measure the long-term quality of the applicant, and narrowing down the search scope to specific keywords.

Moreover, there are certain optimizations that need to be conducted before uploading a resume to the applicant tracking systems tool. The fact that the tool does not cover a significant part of an employee's lifestyle is a major drawback for applicant tracking systems. Therefore, it is difficult to predict the long-term quality of the employee. These limitations of the applicant tracking systems might hamper the growth of the global applicant tracking system market during the forecast period.

Exclusive Customer Landscape

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

Key Companies & Market Insights

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.

Automatic Data Processing Inc. - The company offers an applicant tracking system called WorkMarket.

Bamboo HR LLC - The company offers an applicant tracking system called the BambooHR system.

Bullhorn Inc. - The company offers an Applicant tracking system and CRM.

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

• Applied Training Systems Inc.
• Arcoro
• Automatic Data Processing Inc.
• Bamboo HR LLC
• Bullhorn Inc.
• ClearCo. Inc.
• Cornerstone OnDemand Inc.
• iCIMS Inc.
• International Business Machines Corp.
• Jobvite Inc.
• Learning Technologies Group Plc
• Oracle Corp.
• Paycor HCM Inc.
• SAP SE
• Self Management Resources Corp.
• Silkroad Technology Inc.
• Skeeled HR S.a.r.l.
• UKG Inc.
• Workday Inc.
• Zoho Corp. Pvt. Ltd.

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.

Market Segmentation

By End-user 

The market share growth by the BFSI segment will be significant during the forecast period. Organizations in the BFSI sector are undertaking digital transformation initiatives to align their business models with market requirements. Such a development will promote the adoption of IT infrastructures such as hardware, software, and services.

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The BFSI segments showed a gradual increase in the market share of USD 619.7 million in 2018. In BFSI enterprises, HR processes are not limited to just hiring and recruiting candidates; they also provide candidates with training and development activities to improve performance. Additionally, In order for an organization to achieve better performance and efficiency through its employees, human resources managers must ensure that candidates receive a fair salary and feel comfortable in the organization's environment. Such factors will increase the segment growth during the forecast period.

The demand for applicant tracking systems in government organizations is high due to long hiring cycles and high hiring volumes. Additionally, the cost taken part in hiring large numbers of employees is high. Thus, to hire a large number of employees, organizations need automated software to simplify the recruitment and hiring processes.  Large undertakings hire staff at multiple locations or in specialized roles. The use of these systems for the hiring and recruitment process in large enterprises will rise, as such organizations need significant human capital to manage their workloads which will fuel the segment growth of the market in focus during the forecast period.

By Product

On-premises applicant tracking systems require a robust IT infrastructure for deployment. Generally, the main customers of applicant tracking systems on-premises are large enterprises and institutions with legacy systems, as well as skilled staff for the management of On-premises software. The prime advantage of on-premises applicant tracking systems is that they offer total ownership to the organization. Moreover, it ensures the complete security of applicants' data compared with the cloud-based deployment model. However, the growth rate of the market in focus will record an accelerating growth momentum during the forecast period.

Cloud-based applicant tracking systems are also known as hosted or software as a service (SaaS). Factors such as easy deployment, one-time subscription cost, ease of accessibility, and effective data backup drive the adoption of cloud-based applicant tracking systems over on-premises applicant tracking systems. Due to the cost-effectiveness of these systems, there is a growing expectation that organizations and institutions will be adopting them. Moreover, access to cloud computing improves service-level agreements and consolidates data centers by increasing the security of automated operations. However, increased complexity in process automation and data security threats hinder market growth. Moreover, institutions would have to bear the extra expense of exceeding the allocated data storage quota. The segment is expected to continue its dominance during the forecast period.

Regional Analysis

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North America is estimated to contribute 33% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US is the largest revenue contributor to the market in North America. The market for applicant tracking systems in North America is driven by factors such as the growing need for smart and efficient recruiting in organizations and the increasing number of foreign student enrollments. It is said that the applicant tracking system (ATS) market and technology integration will be a key trend.

In this region, the integration of predictive analytical techniques and artificial intelligence will bring about growth in application tracking systems. The capability of applicant tracking systems has expanded from mere tracking of student data to analysis, prediction, and scheduling of the selection process of applicants. Moreover, North America has been an early adopter of applicant tracking systems. Hence, the applicant tracking system market has reached its maturity stage in North America and is expected to witness steady growth during the forecast period.

Segment Overview

The market 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.

• End-user Outlook
  • BFSI
  • Government
  • Telecom and IT
  • Healthcare and life sciences
  • Others
• Deployment Outlook 
  • On-premise
  • Cloud-based
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

The market is witnessing significant growth driven by the increasing demand for streamlined recruitment and hiring processes. ATS platforms, such as HireLogic and iCIMS, utilize data mining and Artificial Intelligence (AI) to enhance job board postings and screening processes. These systems, often cloud-based, offer essential workforce management capabilities and help identify talented employees with the right abilities and skills. Companies like SmartSearch and Crelate provide innovative data automation solutions, while others like JobRobotix offer specialized tools for transportation & logistics recruitment. The Asia Pacific applicant tracking system market is particularly dynamic, catering to diverse industries like telecom & information technology and healthcare.

Moreover, the market is pivotal in modernizing recruitment processes through ML technologies and AI technology, enhancing business continuity and virtual hiring strategies. It supports job seekers and hiring managers in navigating the technological landscape with recruitment software that includes ATS software for remote hiring and recruiting automation. ATS solutions enable predictive analytics and recruitment analytics to optimize talent acquisition activities across enterprise infrastructure and networking requirements, ensuring security plans mitigate cyber security risks. As organizations, including SMEs and BFSI verticals, adapt to economic changes, ATS platforms streamline candidate screening, interviews, and candidate behavior analysis. They empower HR digital strategies with datadriven recruitment insights, boosting employee retention and brand recognition through effective recruitment marketing and visual dashboards.

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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 market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• 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