Market Size of Applicant Tracking System Industry
Study Period | 2021 - 2029 |
Market Size (2024) | USD 2.84 Billion |
Market Size (2029) | USD 3.89 Billion |
CAGR (2024 - 2029) | 6.47 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Applicant Tracking System (ATS) Market Analysis
The Applicant Tracking System Market size is estimated at USD 2.84 billion in 2024, and is expected to reach USD 3.89 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).
With the onset of the COVID-19 pandemic, several organizations allowed their employees to work from home and hired remote workers to fill company vacancies. As a result, the reopening of the offices, post-COVID lockdowns, is allowing only a few staff to come to the office to work. This change in the work dynamics is prompting companies to utilize efficient applicant tracking software to find the most appropriate hire and room scheduling software to alternate the schedules between return-to-office workers and work-from-home employees to revamp the economy after the economic decline due to the COVID-19 pandemic.
- Managing the recruitment process is one of the most complex and important challenges within a company. It's an expensive investment that includes posting ads, tracking applications, CV screening, and conducting interviews, searching for the ideal candidate. The most significant risk is that, along the way, the company can lose the best talent, and candidates with superior skills can add substantial value and are well suited to a specific role.
- The Applicant Tracking System (ATS) acts as recruitment software to manage and optimize the search and selection process within a company and is used to collect and organize candidate data during several stages of the recruitment process. An ATS doesn't replace the recruiter's role and is considered a tool to support talent acquisition activities and goals.
- An ATS can help address the critical challenges faced by candidates. Some systems can be enriched with artificial intelligence (AI) and machine learning to create a profile of a suitable candidate, assess and identify skills, and predict success factors to maximize each hire. This helps organizations better understand candidate behavior, amplify brand recognition, and target specific job seekers on the platforms and channels they use most.
- An applicant tracking system can also allow recruiters and hiring managers to view all the data and KPIs they require with a click of a button. Time-to-fill can be significantly minimized with the use of applicant tracking tools. It makes it easier to manage the workload brought on by big candidate pools, and the streamlined procedure would be much easier.
- However, applicants that could be a good fit for particular job openings might be overlooked if recruiters rely solely on ATS to parse through resumes for certain keywords. Also, switching to an ATS can be difficult, as it can be difficult to integrate the new system with previous recruiting methods.
Applicant Tracking System (ATS) Industry Segmentation
An applicant tracking system is a solution that enables the electronic handling of recruitment requirements. Businesses can access these systems online at different levels depending on their recruitment needs, allowing them to collate and analyze applicant data. An applicant tracking system software is used by companies to recruit employees more efficiently.
The market covers the emerging trends in the applicant tracking system market, ssegmented by component type (solutions, and services), deployment (on-premise, and cloud), end-user verticals (it and telecommunication, BFSI, retail, healthcare, and other end-user verticals (automotive, industrial manufacturing)), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
Component Type | |
Solutions | |
Services |
Deployment | |
On-premise | |
Cloud |
End-user Verticals | |
IT and Telecommunication | |
BFSI | |
Retail | |
Healthcare | |
Other End-user Verticals (Automotive, Industrial Manufacturing) |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East and Africa |
Applicant Tracking System Market Size Summary
The Applicant Tracking System (ATS) market is poised for significant growth, driven by the evolving dynamics of the workforce and the increasing need for efficient recruitment solutions. The shift towards remote and hybrid work models, accelerated by the COVID-19 pandemic, has underscored the importance of ATS in streamlining the hiring process. These systems serve as crucial tools for organizations to manage and optimize their recruitment efforts, helping to collect and organize candidate data, assess skills, and predict success factors. By integrating artificial intelligence and machine learning, ATS can enhance the recruitment process by providing deeper insights into candidate behavior and preferences, thereby improving the quality of hires and reducing time-to-fill. Despite the challenges of integrating new systems with existing recruitment methods, the benefits of data-driven hiring and recruitment marketing analytics are driving the adoption of ATS across various industries.
The North American region, in particular, is witnessing robust growth in the ATS market, fueled by the presence of numerous technology providers and the region's advanced workforce. The demand for ATS solutions is being propelled by the need to modernize HR functions and adopt cloud-based mobility trends. Major players in the market are actively engaging in strategic partnerships and acquisitions to enhance their offerings and meet the rising demand. The competitive landscape is characterized by significant investments in research and development, with companies like iCIMS, Jobvite, and Fountain introducing innovative solutions to streamline the recruiting lifecycle. As employment continues to rise globally, the ATS market is expected to expand, offering substantial opportunities for both established and emerging players in the industry.
Applicant Tracking System Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Threat of New Entrants
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Bargaining Power of Suppliers
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Market Drivers
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1.3.1 Rising Need to Automate Recruitment Processes
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1.3.2 Significant Growth in Diverse Talent Acquisition
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1.4 Market Challenges
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1.4.1 Limited Technical Expertise for Using Advanced ATS and Complexity Involved with the Integration of ATS Software with Other Systems
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1.5 Assessment of the Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 Component Type
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2.1.1 Solutions
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2.1.2 Services
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2.2 Deployment
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2.2.1 On-premise
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2.2.2 Cloud
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2.3 End-user Verticals
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2.3.1 IT and Telecommunication
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2.3.2 BFSI
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2.3.3 Retail
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2.3.4 Healthcare
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2.3.5 Other End-user Verticals (Automotive, Industrial Manufacturing)
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2.4 Geography
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2.4.1 North America
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2.4.2 Europe
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2.4.3 Asia-Pacific
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2.4.4 Latin America
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2.4.5 Middle East and Africa
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Applicant Tracking System Market Size FAQs
How big is the Applicant Tracking System Market?
The Applicant Tracking System Market size is expected to reach USD 2.84 billion in 2024 and grow at a CAGR of 6.47% to reach USD 3.89 billion by 2029.
What is the current Applicant Tracking System Market size?
In 2024, the Applicant Tracking System Market size is expected to reach USD 2.84 billion.