Applicant Tracking System Market size is estimated to surpass USD 11 Billion by the end of 2035, growing at a CAGR of 9.70% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of applicant tracking system was over USD 3 Billion. The growth of the market can be attributed to the growing need for automation of recruitment processes. For instance, HR automation is used by 27% of companies worldwide, mainly for recruiting and hiring. HR automation contributes to reducing potential bias during the hiring process, according to 32% of survey respondents. Automation of recruitment processes helps streamline the recruitment process by eliminating manual tasks, improving the speed and accuracy of the recruitment process, and helping to reduce costs. Automation also helps to improve the quality of the talent pool by ensuring that the right people are identified and evaluated.
In addition to these, factors that are believed to fuel the market growth of applicant tracking system include the increasing need for streamlining recruitment processes, the rise in demand for analytics-driven recruitment, and the need for reducing recruitment costs. According to estimates, the average hiring cost in the United States is USD 4,500. Hiring a new employee with benefits can cost as much as 42% of the employee's base salary. Applicant tracking systems can help automate and streamline the recruitment process, from job postings to candidate screening and selection. This can help save time and money, as it eliminates the need for manual processes and reduces the amount of time needed to find and hire qualified candidates.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9.70% |
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Base Year Market Size (2022) |
~USD 3 Billion |
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Forecast Year Market Size (2035) |
~USD 11 Billion |
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Regional Scope |
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Deployment (On-premise, Cloud)
The global applicant tracking system market is segmented and analyzed for demand and supply by deployment into on premise, cloud. Out of these, the on premise segment is estimated to gain the largest market share of about ~57% in the year 2035. The on premise segment is estimated to gain the largest market share owing to its cost-effective nature, faster processing speed, and the ability to customize the system according to the needs of the organization. ATS is a cost-effective way for companies to deploy, communicate, and maintain their on-premises infrastructure. Low-cost ATS solutions increase the efficiency of operations and reduce the need to hire more IT personnel. For instance, an on-premises platform from Crelate, a recruiting software provider, has been updated with a vendor management system (VMS) that allows recruiters and staffing professionals to streamline their recruitment process. Furthermore, the on-premise segment offers greater control over the data and its security, making it a popular choice for organizations.
Component Type (Software, Services)
The global applicant tracking system market is segmented and analyzed for demand and supply by component type into software and services. Out of these, the software segment is estimated to gain the significant market share of about ~53% in the year 2035. The growth of the segment can be attributed to the increasing use of applicant tracking software by organizations to streamline their recruitment processes and reduce the time and effort involved in the hiring process. The software also helps to automate the processes and ensures compliance with regulatory requirements. Additionally, the rising demand for cloud-based solutions and the increasing use of mobile and web interfaces are contributing to the growth of the segment. The software offers features such as job posting, resume parsing, candidate screening and selection, interview scheduling, and onboarding. These features help organizations to reduce their recruitment costs, as they do not have to manually search for and review resumes.
Our in-depth analysis of the global market includes the following segments:
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By Component Type |
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By Deployment |
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By Organization Size |
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By End Use |
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APAC Market Statistics
The applicant tracking system market in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~37% by the end of 2035. The rapid increase in the number of job seekers across the region, the rising demand for talent management solutions. According to statistics, 16.50 million new workers will be needed in urban areas in China by 2023, the largest number in decades. With the pandemic causing job losses, the number of job seekers has increased significantly in the past year. This has made it difficult for employers to manage the influx of job applications, prompting them to invest in applicant tracking systems to streamline the recruitment process. Applicant tracking systems are the most efficient way to manage the recruitment process, as they allow employers to quickly search for and sort through a large number of job applications. Moreover, the growing awareness of the benefits of using such systems, such as the ability to streamline the recruitment process and reduce the time spent on manual data entry, is contributing to the growth of the market.
North American Market Forecast
The North America applicant tracking system market is estimated to be the second largest, registering a share of about ~27% by the end of 2035. The growth of the market can be attributed majorly to the increasing use of cloud-based solutions which offer scalability and cost-effectiveness. They also provide organizations with a more efficient and convenient way to manage their recruitment processes. Additionally, the increasing demand for analytics-based data solutions is further driving the growth of the market in North America. Companies are increasingly relying on data-driven decision making to gain a competitive edge. Applicant tracking systems provide a comprehensive view of the recruitment process and allow companies to track, analyze and improve their processes. As a result, there has been an increase in demand for analytics-based data solutions in the region, driving the growth of the applicant tracking system market. The increasing investment in technology and the availability of technological advancements are further expected to spur the growth of the market.
Europe Market Forecast
Further, the applicant tracking system market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the European Union's focus on digital transformation and the increasing demand for automated and efficient applicant tracking systems by organizations in the region. This, combined with the rising need for better recruitment processes and the growth of the gig economy, is propelling the market's growth. Further, the European Union's initiatives on improving the recruitment process for companies and the implementation of supportive regulations, such as the General Data Protection Regulation (GDPR), are driving market growth in region.
A new partnership has been announced by Talroo with JobSync, the leading Talent Acquisition Automation Platform and provider of solutions to enhance the application process for ATSs (applicant tracking systems). This partnership will allow Talroo to provide more powerful and efficient applicant tracking services for their customers. It will allow them to automate their recruitment process and quickly identify and hire the best talent.
A recruitment platform provider for hiring management, Oracle launched a cloud HCM suite called Oracle ME (my experience) to help recruiters and HR recruit candidates. Oracle ME (my experience) is designed to help recruiters and HR professionals streamline the recruitment process by providing a suite of tools that help them identify and connect with candidates, track applications and interviews, and manage onboarding and offboarding processes.
Author Credits: Abhishek Verma, Hetal Singh
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