Applicant Tracking Systems Market Research Report - Forecast to 2030

Applicant Tracking Systems Market Research Report Information By Service (Managed services and Professional services), By Deployment (On-Cloud and On-Premises), By Organization Size (SMEs and Large and big enterprises), and By Region (North America, Europe, Asia-Pacific, and Rest Of The World) - Forecast Till 2030.

ID: MRFR/ICT/4296-HCR | 100 Pages | Author: Ankit Gupta | March 2024         

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Applicant Tracking Systems Market Overview


Applicant Tracking Systems Market Size was valued at USD 2.3 billion in 2021. The applicant tracking systems market industry is projected to grow from USD 2.5 billion in 2022 to USD 3.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.54% during the forecast period (2022-2030). Major market drivers in the applicant tracking systems market include an increase in the need for cost savings, an increase in the need for strategic and improved hiring decisions, and the emergence of social media.

Applicant Tracking Systems Market Overview..
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Applicant Tracking Systems Market Trends


Recruitment Companies' Adoption of Data Analytics Strategy Is Expected to Support Market Growth


The use of data analytics is crucial in the hiring process. The hiring process known as "data-driven recruitment" uses data, which is gathered and analyzed, to help discover a qualified candidate, doing away with the guesswork involved in traditional hiring techniques. By replacing risky hiring decisions that are primarily based on a candidate's like-ability factor, data-driven hiring more closely matches hiring decisions with the needs of the company. Visual dashboards and recruitment marketing statistics are crucial for a firm to achieve its hiring objectives. The appropriate data shows the sources and interests of job seekers, enabling companies to better target their marketing efforts and increase the conversion rate of candidate applications. With participation from Accel and Menlo Ventures in a Series B investment managed by EQT Ventures, Knoetic announced in September 2022 that it had raised USD 36 million. If the platform detects a problem with turnover, Knoetic interfaces with HR systems to enable CPOs to undertake analysis and, automatically create reports, increase staff retention. Following the pandemic, employment has been steadily rising over the world. The International Labor Organization (ILO) estimates that there were 3.32 billion employees ly in 2022, a rise of 0.13 billion from 2019. Thus, this factor is driving the market CAGR.


In addition to their primary function of automating various processes in the recruitment process, application tracking systems also feature sophisticated branding options, equality and diversity capabilities, and use Artificial Intelligence (AI) to analyze resumes and identify top candidates for open positions. By eliminating candidates who don't fulfill a specific set of requirements, applicant tracking systems (ATS) enable Human Resource (HR) managers and recruiters to efficiently sift through a large volume of applications. Each internet job posting attracts, on average, 250 applicants, claims a poll. The workforce management industry requires a better application. The recruitment process is being improved to be more straightforward, equitable, and targeted by a number of large-sized businesses and startup businesses. For instance, the Amsterdam-based company TestGorilla raised nearly USD 66 million for its cutting-edge hiring technology.


However, automation of the hiring process boosts effectiveness and raises the standard of a company's hiring operations. It enables recruiters to select candidates based on traits that are a good indicator of work success. Employers anticipate that by 2020, 17% of all work will be automated. Approximately 94% of USS organisations currently utilizing automation and robotics plan to increase their use of automation over the next three years. Business executives are aware of the benefits of automating the recruiting and HR operations. HR and talent acquisition have been embracing automation and AI technology. In fact, 35% of talent professionals and recruiting managers feel that Al is the top trend affecting the hiring process, according to a Linkedin survey on talent trends. Thus, it is anticipated that this aspect will accelerate applicant tracking systems market revenue.


Latest Industry News On Applicant Tracking Systems Market 


The rapidly expanding workforce management platform Rippling has introduced Rippling Recruiting as of 2023. With the integration of the Rippling WFM platform, this new Applicant Tracking Solution (ATS) seeks to offer an end-to-end solution for recruiting and selection. Rippling thinks its tighter interaction with hiring managers, HR, and Finance sets it apart from pure-play ATS programmes.


The "Ultimate Guide for Evaluating Your ATS Vendor" will be released in 2023 by hrtech, a Singapore-based HR technology advisory and consulting company, in partnership with RippleHire. This HR manual covers the difficulties that the Talent Acquisition teams encounter and aids them in understanding the rationale and procedure for selecting the most appropriate ATS. A cloud-based hiring platform called RippleHire makes it simple for TA teams to find and hire top personnel.


TriNet, a top supplier of all-inclusive human resources for small and medium-sized businesses (SMBs), today announced enhancements to the platform of TriNet Zenefits, its wholly-owned subsidiary, through partnerships with Employ's JazzHR, a market-leading SMB applicant tracking software, and Visier, a market-leading people analytics provider.


AgileATS will release its applicant tracking system in 2023. The introduction of Agile Onboarding's applicant tracking system (ATS) was announced today by the industry-leading provider of onboarding and HR software. The ATS is intended to assist organisations in streamlining the hiring process and making it simpler to find and hire the finest personnel.


On Mar. 22, 2023, Paradox, a leading provider of conversational hiring software, launched its Conversational ATS designed to revolutionize high-volume hiring with chat and text-driven automation. The conversational hiring software can help global employers automate hiring, which gets recruiting work done faster. The re-imagined high-volume applicant tracking system can automate over 90% of the hiring process for frontline workers and hiring managers.


The product focuses on delivering the best frontline candidate and hiring manager experience globally. Paradox's new ATS automates screening based on requirements, interview scheduling, reminders, offers, new hire onboarding, and more, using conversational UI that makes engagement simple and seamless. The new conversational hiring software helps reduce time-to-hire and deliver frictionless experiences.


On Feb. 14, 2023, Crew, a France-based Y Combinator-backed startup, announced that it has raised US$2.45 MN in financing to build an ATS that gave recruiters a way to seek talent together as a team at scale. Crew is a customer relationship management (CRM) system built like the first ATS to address the growing needs of the recruiting industry. It combines an outreach automation tool and database with automation, smart reminders, and workflows.


On Jan.19, 2023, Get. It, a leading provider of a no-cost hiring platform and ATS, launched a new free job posting and candidate attraction platform named Team by Get. It. This next-generation platform is designed for small and midsize businesses to expand their reach and compete for qualified candidates at zero cost. The evolution of Get. Its platform significantly advances its ability to help businesses source and track candidates using powerful web marketing tools at no cost.


On Dec. 13, 2022, Loxo, a leading talent intelligence platform, announced that CarterBaldwin, an executive search firm selected its Talent Intelligence Platform, moving away from a traditional ATS to continue its rapid growth and digital transformation. CarterBaldwin stands among the top search firms by size and recruiting firms worldwide. Loxo's talent intelligence platform includes a best-in-class ATS talent search engine of more than 800 million people, an AI-driven Recruiting CRM, with contact information including verified mobile phone and personal & work emails.


Applicant Tracking Systems Market Segment Insights


Applicant Tracking Systems Services Insights


The applicant tracking systems market segmentation, based on services is divided into managed services and professional services. The professional services segment dominated the applicant tracking systems market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Professional services are essential to cyber security because they lower risks, simplify problems, and boost return on investment, all of which help a company's long-term profits.


Applicant Tracking Systems Deployment Insights


The applicant tracking systems market segmentation has been segmented by deployment into On-Cloud and On-Premises. The on-premise segment dominated the market growth in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030 due to the greater server maintenance provided by on-premise application tracking systems. Furthermore, because it requires a considerable investment to implement, the on-premise deployment strategy is favoured by most large businesses.


Figure 2: Applicant tracking systems Market by Deployment, 2021 & 2030 (USD Billion)
Applicant tracking systems Market by Deployment
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Applicant Tracking Systems Organization Size Insights


The applicant tracking systems market data has been segmented by organization size into SMEs and Large and big enterprises. The SMEs segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the necessity for small and medium-sized firms to save recruiters' time by excluding untrained and inappropriate candidates. This market sector is expanding as a result of the spread of online HR solutions for SMEs that are integrated with applicant tracking systems.


Applicant Tracking Systems Regional Insights


By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America applicant tracking systems market accounted for USD 1.01 billion in 2021 and is expected to exhibit a 43.90% CAGR during the study period because company headquarters are many. The workforce here is the most technologically proficient, to put it simply. Most companies concentrate on developing new technologies in order to gain a competitive edge and expand operations. Automation and localized production's associated cost savings are expected to drive the market in the manufacturing sector.


Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 3: APPLICANT TRACKING SYSTEMS MARKET SHARE BY REGION 2021 (%)
APPLICANT TRACKING SYSTEMS MARKET SHARE BY REGION
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe applicant tracking systems market accounts for the fastest growing market share due to technology developments in applicant tracking systems that enhance staffing operations and recruiter productivity. Because it is quick and effective, artificial intelligence is being employed more and more in the area. Moreover, UK applicant tracking systems market held the largest market share, and the Germany applicant tracking systems market was the fastest-growing market in this region


Asia Pacific applicant tracking systems market is expected to grow at a substantial CAGR from 2022 to 2030. Applicant tracking software is necessary for hiring highly skilled and qualified individuals in the Asia-Pacific region. In addition, Asia-Pacific is rapidly urbanizing, industrializing, changing agriculture, and diversifying its economy, which is creating more job opportunities. Applicant tracking systems have gained popularity as more workers move from rural areas to cities. Further, the Chin applicant tracking systems market held the largest market share, and the India applicant tracking systems market was the fastest-growing market in the region.


Applicant Tracking Systems Key Market Players & Competitive Insights


Major market players are spending a lot on R&D to increase their product lines, which will help the applicant tracking systems industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.


One of the primary business strategies manufacturers adopt in the applicant tracking systems industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, applicant tracking systems industry has provided medicine with some of the most significant benefits. The applicant tracking systems market major player such as International Business Machines Corporation of the United States, Jobvite of the United States, Oracle Corporation of the United States, FindlyTalrnt LLC of the United States, BambooHR of the United States, Clear Company of the United States, CornerStone OnDemand of the United States, Bullhorn Inc of the United States, Exacthire of the United States, Hyrell of the United States and IBM Corporation of the United.


A company that offers learning technology and cloud-based tools for people development is called Cornerstone OnDemand, Inc. The business was publicly traded on the NASDAQ stock exchange until it was acquired by private equity firm Clearlake Capital Group in 2021 with the ticker symbol Nasdaq: CSOD. In September 2022, the learning experience platform EdCast, which Cornerstone purchased, has undergone improvements, according to Cornerstone. Cross-platform integrations, logical insights and dashboards, and new skill possibilities are some of these developments.


The headquarters of the American multinational computer technology company Oracle Corporation are in Austin, Texas. By sales and market value in 2020, Oracle ranked third among all software companies worldwide. In December 2021, with the help of a new generation of simpler-to-use digital tools that offer information access via a hands-free voice interface to secure cloud apps, Oracle recently announced a deal to purchase Cerner Corporation.


Key companies in the applicant tracking systems market includes




  • International Business Machines Corporation of the United States




  • Jobvite of the United States




  • BambooHR of the United States




  • Oracle Corporation of the United States




  • FindlyTalrnt LLC of the United States




  • Clear Company of the United States




  • CornerStone OnDemand of the United States




  • Bullhorn Inc of the United States




  • Exacthire of the United States




  • Hyrell of the United States




  • IBM Corporation of the United




Applicant Tracking Systems Industry Developments


October 2021: The creation of a platform for interview intelligence has been announced by Pillar. The platform offers employers a trustworthy approach to determine a candidate's suitability for a position during the interview process by fusing artificial intelligence with in-interview coaching. While saving money and time, the programme also helps teams to make more evenly distributed hiring decisions.


June 2021: In order to adopt an open hybrid cloud approach that helps speed how businesses develop to suit customers' changing needs, Telefonica Tech and IBM introduced hybrid cloud solutions based on blockchain and Al technologies.


Applicant Tracking Systems Market Segmentation


Applicant Tracking Systems Services Outlook (USD Billion, 2018-2030)




  • Managed Services




  • Professional Services




Applicant Tracking Systems Deployment Outlook (USD Billion, 2018-2030)




  • On-Cloud




  • On-Premises




Applicant Tracking Systems Organization Size Outlook (USD Billion, 2018-2030)




  • SMEs




  • Large and big enterprises




Applicant Tracking Systems Regional Outlook (USD Billion, 2018-2030)




  • North America






  • US




  • Canada






  • Europe






  • Germany




  • France




  • UK




  • Italy




  • Spain




  • Rest of Europe






  • Asia-Pacific




    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World




    • Middle East




    • Africa




    • Latin America





Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 2.3 Billion
Market Size 2022 USD 2.5 Billion
Market Size 2030 USD 3.8 Billion
Compound Annual Growth Rate (CAGR) 6.54% (2022-2030)
Base Year 2021
Forecast Period 2022-2030
Historical Data 2018 & 2020
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Services, Deployment,Organization Size, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled International Business Machines Corporation of the United States, Jobvite of the United States, Oracle Corporation of the United States, FindlyTalrnt LLC of the United States, BambooHR of the United States
Key Market Opportunities Automation is required in the hiring process
Key Market Dynamics An increase in the need for effective labour management and the use of social media sites for job searching Recruitment companies' adoption of data analytics strategy Is expected to support market growth




Frequently Asked Questions (FAQ) :

The market size was expected to be USD 2.3 billion in 2021

The market is expected to register a CAGR of ~6.54% over the next ten years.

North America held the largest market share in the market.

International Business Machines Corporation of the United States, Jobvite of the United States, Oracle Corporation of the United States, FindlyTalrnt LLC of the United States, BambooHR of the United States are the key players in the market.

The on-premise category led the segment in the market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
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  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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