Applicant Tracking System Market Share, Size, Trends, Industry Analysis Report
By Component (Software, Services); By Deployment Model; By Organization Size, By Industry Vertical; By Region; Segment Forecast, 2025 - 2034
- Published Date:Sep-2025
- Pages: 114
- Format: PDF
- Report ID: PM2431
- Base Year: 2024
- Historical Data: 2020 - 2023
The global applicant tracking system market was valued at USD 2.84 billion in 2024 and is expected to grow at a CAGR of 6.9% during the forecast period. Key factors driving the market demand includes improved candidate experience through a streamlined process, increase in demand for cloud-based recruitment solutions among enterprises, demand for improved staffing efficiencies and productivity, and the need to replace traditional hiring methods.
Key Insights
- In 2024, the software segment dominated the global market share. This is due to the need for applicant tracking systems to centralize, automate, standardize, organize, and generate reports.
- The cloud segment is expected to witness the highest CAGR during the forecast period, attributed to its business advantages.
- In 2024, North America held the largest global market share due to the presence of the headquarters of most major corporations in this region.
- Asia Pacific is anticipated to witness robust growth in the global applicant tracking system market due to the region's massive population growth, resulting in a significant number of applications for every job posting.
Industry Dynamics
- Applicant tracking system software enables organizations to effectively manage the candidate process, reducing the time to hire and the administrative burden. This has expanded the market worldwide.
- AI and cloud-based solutions are accelerating ATS demand. These systems match top talent to roles to give businesses a competitive edge in recruitment.
- Many systems mistakenly filter out qualified candidates because they rely too heavily on specific keywords, leading to a less diverse and potentially weaker talent pool.
- The continued increase in AI and predictive analytics usage creates opportunities for systems to be smarter that will help organizations understand whether the candidate has potential and is a fit for the organization.
Market Statistics
- 2024 Market Size: USD 5.73 billion
- 2034 Projected Market Size: USD 11.62 billion
- CAGR (2025-2034): 7.35%
- North America: Largest market in 2024
To Understand More About this Research: Request a Free Sample Report
AI Impact on Applicant Tracking Systems Market
- Automates screening of resumes to filter out and rank the most qualified candidates for job.
- Reduce biasness with focus on qualification and skill set over the details present.
- Provide 24/7 chat support to improve communication and overall experience.
- Predictive analysis forecast canditdate's confirmation with long term fit for the company.
ATS software automates the recruitment process by collecting, sorting, and managing job applications. The rise in the need for automation in the recruitment process has primarily driven the growth of the global market. The automation of the recruitment process increases efficiency as well as improves the quality of a company's hiring efforts.
The automation of hiring helps with consistent hiring decisions. This automated recruitment process has led to the increased adoption of applicant tracking systems. The increased demand to enhance candidate experience through streamlined processes and the need to replace traditional hiring methods boost the growth opportunities.
The rapid digitization of core corporate functions in business ecosystems is being conducted virtually, leveraging innovative technologies. For instance, several business organizations worldwide have been transitioning to automated applicant tracking systems due to social distancing, extended lockdowns, and remote work. Many business globally have shifted to completely automated applicant tracking systems as a result of social distancing, widespread lockdowns, and remote work. Moreover, vendors have created a large number of completely automated solutions to meet the demands created by an accelerated hiring-based approach.
Industry Dynamics
Growth Drivers
ATS software solutions are equipped with capabilities ranging from simple database functionality to a suite of tools that enable businesses of any size to manage, filter, and analyze candidates easily. In addition, the numerous benefits associated with the applicant tracking system, such as reduced time spent on administrative tasks, faster and more efficient CV screening, improved quality of hire, and an enhanced candidate experience, contribute to the growth of the global applicant tracking system market.
Integration of AI improves the capabilities of ATS systems, which enhance the recruitment process. The adoption of cloud-based recruitment solutions among enterprises creates a rapid market demand for ATS. This automatically rank applicants based on skillset and cultural fit to reduce time-to-hire with the help of smart candidate match. Businesses are adopting to these systems to gain competitive edge to acquire top talents.
Report Segmentation
The global market is primarily segmented on the basis of component, deployment model, organization size, industry verticals, and region.
|
By Component |
By Deployment Model |
By Organization Size |
By Industry Vertical |
By Region |
|
|
|
|
|
Know more about this report: Request for sample pages
Segmental Insights
Component Analysis
The software segment dominated the global market share in 2024 due to the increasing need for applicant tracking systems to centralize, automate, standardize, organize, and generate reports on a company's hiring and recruiting processes. The emergence of new applicant tracking system software is expected to be opportunistic for the growth of this segment. For instance, in November 2021, Scout Talent, a recruitment software and services provider, launched applicant tracking software and recruitment services in response to the U.S. talent shortage.
Deployment Model Analysis
The on-premise segment accounted for the largest market share in 2024, as on-premise applicant tracking systems offer better server maintenance. In addition, the on-premise deployment model is widely preferred in large enterprises, as it involves investment to implement.
Also, it provides better data security than the cloud-based solutions, promoting the adoption of on-premise applicant tracking solutions among organizations.
The cloud segment is expected to witness the highest CAGR during the forecast period because cloud-based applicant tracking systems offer businesses competitive advantages such as improved accessibility, quick deployment, a streamlined recruitment process, and reduced expenses.
Regional Analysis
North America Applicant Tracking System Market Assessment
North America dominated the global applicant tracking system market in 2024 as most corporations worldwide are headquartered in this region. In addition, the rise in usage of mobile phones for candidates' recruitment process boosts the growth opportunities. The presence of large enterprises provides a developed customer base with resources to invest in advanced human resource technologies. Moreover, government regulations for the hiring process and data protection enhance the need for reliable tracking systems. The adoption of cloud systems and data analytics also contributes to the growth opportunities. Thus, the trend of work from home has also boosted the need for digital hiring platforms that manage the candidate throughout process.
Asia Pacific Applicant Tracking System Market Insights
Asia Pacific is anticipated to witness the highest market growth in the global applicant tracking system market. This region's massive population growth leads to a significant number of applications for every job post. In this case, recruiters from various industries in the region are actively using ATS to automate hiring processes. For instance, the Unit4 Prosoft ATS solution serves customers in Asia and is trusted by over 1,000 businesses across the Asia Pacific region in the construction, healthcare, manufacturing, retail, and professional services industries.
Competitive Insights
Some of the major market players operating the market include ADP, ATS OnDemand, BambooHR, Breezy HR, Bullhorn, CEIPAL, ClearCompany, Cornerstone, Greenhouse Software, IBM, iCMIS, JazzHR, Jobvite, Lever, Oracle, Paycor, PeopleFluent, SAP, Silkroad Technology, Skeeled, SmartRecruiters, TalentNest, Trakstar Hire, Ultimate Software, and Workday.
Applicant Tracking System Market Report Scope
|
Report Attributes |
Details |
|
Market size value in 2024 |
USD 2.84 Billion |
| Market size value in 2025 | USD 3.03 Billion |
|
Revenue forecast in 2034 |
USD 5.53 Billion |
|
CAGR |
6.9% from 2025 - 2034 |
|
Base year |
2024 |
|
Historical data |
2020 - 2023 |
|
Forecast period |
2025 - 2034 |
|
Quantitative units |
Revenue in USD billion and CAGR from 2025 to 2034 |
|
Segments covered |
By Component, By Deployment Model, organization size, industry verticals, By Region |
|
Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
|
Key Companies |
ADP, ATS OnDemand, BambooHR, Breezy HR, Bullhorn, CEIPAL, ClearCompany, Cornerstone, Greenhouse Software, IBM, iCMIS, JazzHR, Jobvite, Lever, Oracle, Paycor, PeopleFluent, SAP, Silkroad Technology, Skeeled, SmartRecruiters, TalentNest, Trakstar Hire, Ultimate Software, and Workday. |
FAQ's
• The global market size was valued at USD 2.84 billion in 2024 and is projected to grow to USD 5.53 billion by 2034.
• The global market is projected to register a CAGR of 6.9% during the forecast period.
• North America dominated the global market share in 2024.
• A few market players are ADP, ATS OnDemand, BambooHR, Breezy HR, Bullhorn, CEIPAL, ClearCompany, Cornerstone, Greenhouse Software, IBM, iCMIS, JazzHR, Jobvite, Lever, Oracle, Paycor, PeopleFluent, SAP, Silkroad Technology, Skeeled, SmartRecruiters, TalentNest, Trakstar Hire, Ultimate Software, and Workday.
• In 2024, the software segment dominated the global market share.
• The cloud segment is expected to witness the highest CAGR during the forecast period.
© 2025 Polaris Market Research and Consulting. All rights reserved
