Europe - Applicant Tracking Systems (ATS) Market by End-user and Deployment Forecast and analysis - 2023-2027

Europe Applicant Tracking Systems (ATS) Market Size 2023-2027

The Europe applicant tracking systems (ATS) market size is forecast to increase by USD 202.48 million at a CAGR of 5.58% between 2022 and 2027. The growth of the market depends on several factors, including the digitalization of HR divisions of organizations, the benefits associated with applicant tracking systems, and the increasing use of cloud-based applicant tracking systems. An applicant tracking system is a software application that manages the five stages of the recruitment lifecycle, namely sourcing, screening, interviewing, hiring, and applicant performance measuring. The main function of an applicant tracking system is to shortlist and screen relevant applications or resumes based on pre-fed keywords. The keywords are generally related to job skills, the experience of candidates, and job locations.

What will be the Size of the Europe Applicant Tracking Systems Market During the Forecast Period?

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The market is experiencing significant growth, driven by the need for efficient labor management and talent acquisition solutions in a hybrid work environment. As organizations adapt to remote work and cross networks, there's a rising demand for ATS platforms that streamline recruitment processes and enable effective deployment models. These systems cater to various verticals and broker-dealers, facilitating data-driven recruitment and enhancing hiring decisions through visual dashboards and KPI monitoring. With features like room scheduling software and support for remote workers, ATS platforms empower recruitment companies to manage candidate data seamlessly and optimize their recruitment processes.

Market Dynamics and Customer Landscape

In Europe, the market is evolving rapidly to meet the diverse needs of enterprises of all sizes. Recruiting solutions, including applicant tracking software and room scheduling software, cater to recruitment needs efficiently. With a focus on data-driven recruitment, ATS platforms leverage advanced data collection approaches and visual dashboards to streamline the hiring process. They accommodate various deployment models and verticals, offering flexibility for different organizational setups. In today's hybrid work environment, where remote workers are prevalent, ATS solutions play a crucial role in managing talent acquisition business and labor management. They empower recruitment companies with insights to make informed hiring decisions and optimize KPIs.

Key Market Driver

Digitalization of HR divisions of organizations is the key factor driving the growth of the market. Over the years, the criteria for evaluating employers have increasingly narrowed and become consistent with the rapid increase in specialized jobs. Tasks such as document review, maintaining candidate files and accessing them as needed, scheduling interviews, and managing the entire recruitment cycle are complex, tedious, and time-consuming. These tasks, when handled manually, will cause errors. As a result, organizations are increasingly adopting new IT technologies that help automate the recruitment processes and prevent errors.

In addition, the applicant tracking system helps human resource managers select suitable candidates. Candidate selection is based on keywords related to the job offer. The use of applicant tracking systems is increasing because they automate other activities such as screening new employee forms, managing online training modules, and tracking employee engagement as well. like other employee registrations. This saves time for HR departments, leading to the growth of the market during the forecast period.

Significant Market Trends

Demand for mobile-based applicant tracking systems apps is the primary trend shaping the growth of the market. Mobile applications are widely used for e-commerce, payments, food delivery, healthcare, and many other purposes, with the high popularity of smartphones and increasing internet bandwidth in European countries. The trend of accessing work-related information on mobile devices is increasing. A variety of applications focused on HR operations are available in the market for job seekers and employers.

Furthermore, large market players such as Google, Workable, and Jobvite Inc. (Jobvite) offer a mobile applicant tracking system due to their popularity. Mobile applicant tracking system allows HR managers to find sought-after candidates' resumes, providing advanced analytics and recruiting reports to review pipelines and plan future strategic plans. Therefore, the benefits offered by mobile applicant tracking systems are expected to drive the growth of the market during the forecast period.

Major Market Restrain

Keyword optimization issue in applicant tracking systems is a challenge that affects the growth of the market. There are some issues related to keyword optimization in applicant tracking system tools. In some cases, applicant tracking system software will rank candidates higher if a keyword is mentioned multiple times in the resume. For example, if a candidate has mentioned the keyword Python multiple times in their resume, the applicant tracking system will rank resumes higher in the list than resumes that are only mentioned once.

In such situations, many ideal candidates for the position may not be selected. Such issues related to applicant tracking systems can affect their acceptance, which, in turn, may impede the European applicant tracking system market during the forecast period.

Customer Landscape

The 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.

Customer Landscape

Market Segmentation

This market report extensively covers market segmentation by end-user (large enterprises and SMEs) and deployment (cloud-based and on-premise). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. In the market, businesses of varying sizes rely on robust recruiting solutions to streamline their recruitment process. These systems employ diverse data collection approaches and software programs to meet the unique recruitment needs of enterprise size. Leveraging a comprehensive tech stack, including applicant tracking software, enables efficient management of candidate data and recruitment workflows. Additionally, organizations assess key performance indicators (KPIs) to optimize talent acquisition processes. Whether publicly listed or privately held, companies across verticals benefit from ATS solutions, enhancing liquidity and facilitating seamless interactions across networks, including multilateral trading facilities and electronic communication networks (ECNs). Broker-dealers play a vital role in deploying and customizing ATS components to meet the dynamic demands of the talent acquisition business across Europe.

By End-user 

The market share growth by the large enterprises segment will be significant during the forecast period. The European Union (EU) has defined large companies as organizations with more than 250 employees. Companies in Germany, France, the UK, and other European countries are implementing digital transformation initiatives to adapt their business models to market needs. Furthermore, HR managers must ensure that candidates receive fair rewards and feel comfortable with the organization's environment so that the organization can gain better performance and efficiency from employees.

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The large enterprises segments showed a gradual increase in the market share of USD 379.85 million in 2017. Additionally, some market players have begun incorporating new technologies such as AI, machine learning (ML), and deep learning (DL) into their applicant tracking system offerings. This helps speed up the process of evaluating CVs and selecting ideal candidates. The use of applicant tracking systems for recruitment processes in large enterprises will increase as these organizations require significant human resources to manage their workload, which will drive the growth of this segment in 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.

• Alphabet Inc.: The company offers applicant tracking systems such as Google Hire that represent a step forward in talent acquisition, improving upon HR technology and the modern applicant tracking system.
• Automatic Data Processing Inc.: The company offers applicant tracking system under the brand WorkMarket.
• Bullhorn Inc.: The company offers applicant tracking systems such as Bullhorn which helps to optimize business processes and generate more revenue.
  

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

• Arcoro
• Cegid SA
• Cisco Systems Inc.
• ClearCo. Inc.
• Cornerstone OnDemand Inc.
• Greenhouse Software Inc
• iCIMS Inc.
• International Business Machines Corp.
• Jobvite Inc.
• Kallidus Ltd.
• Koch Industries Inc.
• Oracle Corp.
• SAP SE
• Skeeled HR S.a.r.l.
• Tribepad Ltd.
• 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 Analyst Overview

The market plays a pivotal role, offering comprehensive recruiting solutions that cater to diverse recruitment needs. These systems utilize sophisticated software program that is equipped with advanced data collection approaches to streamline talent acquisition processes across enterprises of varying sizes. Leveraging a robust tech stack, ATS platforms facilitate efficient liquidity in the labor market, connecting job seekers with opportunities through publicly listed securities and multilateral trading facilities. Enhanced by ECNs and cross networks, these solutions empower broker-dealers and organizations to manage labor resources effectively while optimizing talent acquisition strategies. Whether deployed on-premises or through cloud-based models, ATS solutions are an integral component in modern recruitment ecosystems, driving efficiency and agility in the recruitment process.

The market is witnessing significant growth driven by the rising adoption of data-driven recruitment strategies among enterprises of varying sizes and across diverse vertical presence. ECNs (Electronic Communication Networks) facilitate seamless communication within these systems, enhancing labor management and talent acquisition processes. Call networks play a pivotal role in connecting remote workers, a trend increasingly prevalent in today's hybrid work environment. Enterprises utilize ATS to streamline candidate data management and optimize hiring decisions, supported by visual dashboards presenting key performance indicators (KPIs). Recruitment companies leverage ATS to efficiently manage candidate pipelines, contributing to the overall efficiency of the talent acquisition business. Room scheduling software integration enhances the deployment model, catering to the needs of a dynamic workforce. Overall, the market is evolving to meet the demands of modern recruitment practices and the complexities of today's workforce landscape.

In Europe, the market is experiencing growth, fueled by the increasing adoption of Applicant tracking software among enterprises of all sizes, including Small & Medium Enterprises (SMEs). These systems play a pivotal role in facilitating labor mobility strategies, supported by exchanges such as ESCO and resources like O*NET, endorsed by CEDEFOP. ATS solutions offer a range of components and services, including cloud-based platforms that cater to various vertical such as Telecom & IT, Retail & Consumer Goods, Manufacturing, Government & Defense, Transportation & Logistics, and Energy & Utility. Integration with artificial intelligence (AI) enhances efficiency, particularly in large offices and distributed work environments. Overall, ATS is reshaping the economy by optimizing recruitment processes and improving workforce management across diverse industries.

Segment Overview

The market forecast report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Million for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments. 

• End-user Outlook 
  • Large enterprises
  • SMEs

• Deployment Outlook 
  • Cloud-based
  • On-premise

Market Scope
Report Coverage	Details
Page number	159
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.58%
Market growth 2023-2027	USD 202.48 million
Market structure	Fragmented
YoY growth 2022-2023(%)	4.75
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., Arcoro, Automatic Data Processing Inc., Bullhorn Inc., Cegid SA, Cisco Systems Inc., ClearCo. Inc., Cornerstone OnDemand Inc., Greenhouse Software Inc, iCIMS Inc., International Business Machines Corp., Jobvite Inc., Kallidus Ltd., Koch Industries Inc., Oracle Corp., SAP SE, Skeeled HR S.a.r.l., Tribepad Ltd., Workday Inc., and Zoho Corp. Pvt. Ltd.
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 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 market growth and forecasting between 2023 and 2027
• Precise estimation 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
• Market growth analysis across Europe
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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