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applicant tracking system market

Applicant Tracking System Market Share, Size, Trends, Industry Analysis Report, By Component (Software, Services); By Deployment Model (Cloud, On-Premise); By Organization Size (SMEs, Large Enterprises), By Industry Vertical; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jun 2022
  • Pages: 114
  • Format: PDF
  • Report ID: PM2431
  • Base Year: 2021
  • Historical Data: 2018 - 2020

Report Summary

The global applicant tracking system market was valued at USD 2.35 billion in 2021 and is expected to grow at a CAGR of 6.9% during the forecast period. 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.

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In addition, the automation enables more consistent hiring decisions. This recruitment process automation has led to the increased adoption of the applicant tracking system, a software solution that allows the automated handling of recruitment and hiring needs.

In addition, several factors such as increasing market demand to enhance candidate experience through a streamlined process, the emergence of mobile-based recruitment systems, market demand for improved staffing efficiencies and productivity, and the need to replace traditional hiring methods drive the growth of the global applicant tracking system market.

During the Covid-19 pandemic, the global business ecosystem was disrupted. However, this has led to rapid digitization, and all core corporate functions in business ecosystems are being conducted virtually with the help of innovative technologies. For instance, several business organizations around the globe have been transitioning towards automated applicant tracking systems due to social distancing, extended lockdowns, and remote work.

Also, the market players have introduced innovative applicant tracking systems to meet the market demand for automated hiring solutions in the post-pandemic. For instance, in March 2022, Agile Onboarding, one of the leading applicant tracking systems, launched the Agile Onboarding Software that uses targeted AI and data analysis to help recruiters adhere to regulations during hiring campaigns.

Industry Dynamics

Growth Drivers
ATS software solutions are equipped with capabilities ranging from simple database functionality to a suite of tools that businesses of any size to manage, filter easily, and analyze candidates. In addition, the number of benefits associated with the applicant tracking system, such as reduced time spent with administrative tasks, better and faster CV screening, improved quality of hire, and enhanced candidate experience, boosts the growth of the global market.

For instance, according to the North American Candidate Experience Research Report in 2020, there was a 52% increase in positive experiences of the candidate. However, ATS software ensures a positive connection among the candidates and recruiters; hence, the need to enhance candidate experience during the recruitment process boosts the growth of the global applicant tracking system market.

On the other hand, integrating Artificial Intelligence (AI) functionality into applicant tracking system (ATS) software solutions is expected to create growth opportunities for the market. The integration of AI enhances the capabilities of ATS systems and improves the recruitment process. For instance, impress.ai is an AI-powered ATS that automates the hiring process and scouts for quality candidates quickly. Furthermore, the proliferation of cloud-based recruitment solutions among enterprises creates a market demand for the applicant tracking systems market.

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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

  • Software
  • Services
  • Cloud
  • On-premise
  • SMEs
  • Large Enterprises

 

  • BFSI
  • Government
  • Manufacturing
  • Telecom and IT
  • Consumer Goods and Retail
  • Healthcare and Life Sciences
  • Energy and Utilities
  • Transportation and Logistics
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Insight by Component

The software segment is expected to dominate the global applicant tracking structure market throughout the forecast period due to the increasing need for applicant tracking systems to centralize, automate, standardize, organize, and generate reports on the hiring and recruiting process of the company.

On the other hand, the emergence of new applicant tracking structures 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.

Insight by Deployment Model

The on-premise segment is expected to contribute the most significant revenue in the projected period as the on-premise applicant tracking systems offer better maintenance of servers. In addition, the on-premise deployment model is widely preferred in large enterprises, as it involves significant investment to implement.

Also, better data security than the cloud-based solutions promotes the adoption of on-premise applicant tracking solutions among organizations. However, the cloud segment is expected to witness the highest CAGR during the forecast period because the cloud-based applicant tracking systems offer businesses competitive advantages such as improved accessibility, quick deployment, speeds up the recruitment process, and reduced expenses.

Insight by Organization Size

The SMEs segment is expected to witness the highest CAGR during the forecast period. This is attributed to the need for small and medium-sized businesses to save recruiters time by eliminating unqualified and unsuitable applicants. In addition, the proliferation of online HR solutions for SMEs integrated with the applicant tracking systems boosts the growth of this market segment.

For instance, BambooHR is an online HR system mainly dedicated to small and medium-sized businesses. This software offers integrated payroll, applicant tracking system (ATS), e-signatures, time-off tracking, onboarding tools, and performance management.

Geographic Overview

Geographically, North America is the most significant revenue contributor in the global applicant tracking system market since most significant corporations worldwide are headquartered in this region. In addition, the rise in usage of mobile phones for candidates' recruitment process boosts the growth of the market. For instance, according to TalentBoard, in North America, 36% of candidates applied for jobs via mobile device in 2020.

Moreover, 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 2021

USD 2.35 Billion

Revenue forecast in 2030

USD 4.20 Billion

CAGR

6.9% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

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.

Key Take-Away
Polaris Market Research
Applicant Tracking System Market Size Global Report, 2022 - 2030