Applicant Tracking System Market Size & Share, by Component Type (Software, Services); Deployment (On-premise, Cloud); Organization (SMEs, Large Enterprises); End-user (IT, Telecommunication, BFSI, Retail, Healthcare, Retail, Manufacturing) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4819
  • Published Date: Apr 14, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

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.


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Applicant Tracking System Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Emergence of Data Analytics in Recruitment - Researchers found that companies that use analytics in recruitment achieve 2 to 3 times better results in terms of hiring quality, time to hire, and employee retention. Companies are increasingly using data analytics to identify the best candidates for job openings. This includes collecting data on the qualifications and experience of job applicants, as well as other factors such as their personality, preferences, and past performance. This data is used to identify the best candidates and make more informed recruitment decisions.
  • Rapid Growth in Employment Rate - For instance, a 47% employment rate was recorded in India in 2021. By comparison with the previous year, the indicator increased by 5.3% in 2021. As the rate of employment increases, more companies are looking for effective ways to manage the hiring process, and an ATS is one way to do this. ATS automate the process of sorting and tracking job applications, making it easier for companies to manage large numbers of applicants.
  • Significant Growth In Small Businesses - According to the latest statistics, the number of small businesses in the US stands at 34 million, which represents 98% of all companies operating in the country. It has been estimated that US small businesses have created 8.5 million jobs between March 2020 and March 2021.
  • Increasing Demand for Cloud-Based Applicant Tracking Systems - A recent survey concluded that about 99% of Fortune 500 companies utilize integrated ATS software. In addition, 67% of large companies rely on ATS software, whereas 35% of small businesses rely on it.
  • Higher Employment Rate in IT and Banking Sector-As the IT and banking sector continues to grow and employ more people, the need for efficient recruitment processes increases. ATS provide companies with the tools they need to efficiently and effectively manage their recruitment processes, which is why the demand for them is also increasing. It was observed that India Inc. gained 3.82 million new jobs in 2021-22, with 94% of the job growth coming from IT, banking, and finance sectors.

Challenges

  • High installation and maintenance costs - Companies have to invest a significant amount of money to set up an applicant tracking system, and then have to pay for ongoing maintenance. This can be a major financial burden for companies, and can limit the growth of the applicant tracking system market.
  • Difficulty in integration of the applicant tracking system with existing HR systems
  • Lack of awareness and the presence of a large number of manual processes

Applicant Tracking System Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~9.70%

Base Year Market Size (2022)

~USD 3 Billion

Forecast Year Market Size (2035)

~USD 11 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Applicant Tracking System Segmentation

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:

          By Component Type

  • Software
  • Services

          By Deployment

  • On-premise
  • Cloud

          By Organization Size

  • Small & Medium Enterprises
  • Large Enterprises

         By End Use

  • IT and Telecommunication
  • BFSI
  • Retail
  • Healthcare
  • Retail
  • Manufacturing
  • Others

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Applicant Tracking System Industry - Regional Synopsis

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.

Research Nester
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Companies Dominating the Applicant Tracking System Landscape

top-features-companies
    • Talroo
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • International Business Machines Corporation (IBM)
    • iCIMS
    • Oracle
    • PeopleFluent
    • Cornerstone
    • Workday
    • UKG Inc.
    • ADP, Inc
    • SAP

In the News

  • 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


  • Report ID: 4819
  • Published Date: Apr 14, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The increasing demand for process automation in the recruitment process and the need for better operational efficiency and growing adoption of cloud-based solutions are the major factors driving the market growth.

The market size of applicant tracking system is anticipated to attain a CAGR of 9.70% over the forecast period, i.e., 2023-2035.

High installation and maintenance costs, and difficulty in integration of the applicant tracking system with existing HR systems are estimated to be the growth hindering factors for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are Talroo, International Business Machines Corporation (IBM), iCIMS, Oracle, PeopleFluent, Cornerstone, Workday, UKG Inc., ADP, Inc, SAP and others.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by component type, deployment, organization size, end use, and by region.

The on premise segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Applicant Tracking System Market Report Scope
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