Applicant Tracking Systems Market

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 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.

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 

August 2023: RChilli’s latest innovation, RCR (RChilli Candidate Recharge), looks to turn the candidate data reprocessing into an ATS (Applicant Tracking System). This innovative idea ensures a seamless and efficient experience for ATS providers and their end users.

March 2023: Paradox releases the first Conversational ATS in the market, challenging high-volume hiring with chat and text-driven automation.

October 2022, Paycor HCM, Inc., a prominent provider of human capital management (HCM) software, has recently acquired Talenya, which is an advanced AI-led recruiting platform that can find top talent quickly and inexpensively.

October 2022, The release of Cornerstone OnDemand Inc.’s new Talent Experience Platform (TXP), a leading proponent of talent experience solutions, aims to enable talent leaders to maximize workforce potential whilst simplifying cumbersome processes.

In October 2022, iCIMS, the talent cloud company, announced new innovations that will help talent teams get unmatched talent intelligence, automate more tasks, and inspire current employees to design their next career opportunity within company walls.

March 2022 saw the launching of Jobvite’s Evolve Talent Acquisition Suite targeted at enterprise organizations as it unifies Jobvite’s offerings into a single solution set that addresses complex challenges across the full Recruiting Lifecycle. A common user experience built with recruiting efficiency enhancement in mind purposefully enables organizations to lower cost per hire while increasing recruitment effectiveness.

Mar-2022: Zoho Recruit partnered with EduThrill, which is an expert in scalable gamified assessment and learning using AI. Consequently, selectors will be able to send assessment tests through any stage to participants and receive status reports from them via one system. In addition, automation and digitization appraisal procedures make selectors more systematic.

Feb-2022: iCIMS joined forces with Infor – an industry cloud company – which has been aimed at providing next-gen talent capabilities across North America for major service industries like healthcare organizations. The partnership also includes integrating the end-to-end talent lifecycle and helping businesses to engage, attract, advance, and recruit the best people on a scale and pace that suits them.

Dec-2021: IBM signed a three-year contract with AIB – The Irish bank. IBM will apply its data analytics tools to AIB’s technology roadmap and enterprise needs in order to improve systems capability of opportunity through integration. This will allow the bank to operate more flexibly if it is going to introduce automation or digitization into its processes.

The Global Applicant Tracking Systems Market Industry is adapting to the growing trends of remote work and flexible employment arrangements. As organizations expand their talent pools beyond geographical boundaries, ATS solutions are becoming essential for managing remote recruitment processes. These systems facilitate virtual interviews, collaborative hiring, and seamless communication among remote teams. The shift towards remote work is likely to influence the design and functionality of ATS platforms, ensuring they cater to the needs of a dispersed workforce. This trend reflects a broader transformation in workplace dynamics, emphasizing the importance of technology in modern recruitment.

The Global Applicant Tracking Systems Market Industry is witnessing a growing emphasis on diversity and inclusion in hiring practices. Organizations are increasingly recognizing the importance of building diverse teams to foster innovation and improve business outcomes. ATS solutions are being designed to mitigate unconscious bias and promote fair hiring practices. By utilizing features that anonymize candidate information and analyze diversity metrics, companies can enhance their recruitment strategies. This trend aligns with the broader societal push for equality and representation in the workplace, indicating a significant shift in how organizations approach talent acquisition.

The integration of artificial intelligence into the Global Applicant Tracking Systems Market Industry is transforming recruitment practices. AI-powered ATS solutions offer advanced features such as resume parsing, predictive analytics, and chatbots for candidate engagement. This technological advancement not only enhances the efficiency of the hiring process but also improves the quality of candidate selection. As organizations increasingly rely on data analytics, the market is expected to grow significantly, with a projected CAGR of 6.17% from 2025 to 2035. The ability to leverage AI in recruitment processes positions companies to attract top talent in a competitive landscape.

Regulatory compliance and data security are paramount concerns within the Global Applicant Tracking Systems Market Industry. As organizations navigate complex labor laws and data protection regulations, ATS solutions are evolving to ensure compliance with legal requirements. This includes features that safeguard candidate data and facilitate secure information sharing. The increasing scrutiny on data privacy, particularly with regulations such as GDPR, drives the demand for ATS systems that prioritize security. Companies are likely to invest in robust ATS solutions to mitigate risks associated with non-compliance, thereby enhancing their overall recruitment framework.

The Global Applicant Tracking Systems Market Industry experiences heightened demand for recruitment efficiency as organizations seek to streamline hiring processes. Companies are increasingly adopting ATS solutions to reduce time-to-hire and enhance candidate experience. In 2024, the market is projected to reach 2.7 USD Billion, driven by the need for effective talent acquisition strategies. By automating various stages of recruitment, organizations can minimize manual tasks, allowing HR professionals to focus on strategic initiatives. This trend indicates a shift towards data-driven decision-making in recruitment, where analytics play a crucial role in identifying the best candidates.

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 (%)

Source: Secondary Research, Primary Research, Market Research Future 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.

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.