As per MRFR analysis, the US Applicant Tracking Systems Market Size was estimated at 639.24 (USD Million) in 2023. The US Applicant Tracking Systems Market Industry is expected to grow from 661.08(USD Million) in 2024 to 1,251.81 (USD Million) by 2035. The US Applicant Tracking Systems Market CAGR (growth rate) is expected to be around 5.976% during the forecast period (2025 - 2035)
Key US Applicant Tracking Systems Market Trends Highlighted
A number of important market factors are causing a major shift in the US applicant tracking systems (ATS) market. The need for effective hiring procedures has grown as a result of the transition to remote and hybrid employment. In order to efficiently attract and enroll talent, businesses are realizing how important it is to streamline their hiring processes. Artificial intelligence and automation are increasingly being used as key elements in applicant tracking systems (ATS) to improve user experience and candidate screening. This development is mostly a result of the US labor market's intense competition, which has prompted businesses to look for ways to increase the effectiveness of their hiring processes.
The US ATS market offers a plethora of chances to investigate. Systems that work effectively with current HR technology are becoming more and more necessary as firms continue to modernize. The potential for applicant tracking systems (ATS) that offer thorough analytics on hiring procedures is supported by the growing significance of data-driven decision-making. Additionally, more specialized ATS providers may find opportunities by serving niche markets, such as particular industries or demographics. Recently, there has been a greater emphasis on the candidate experience. Businesses are beginning to see how much higher engagement and retention rates can be achieved with an application process that is easy to use.
To guarantee that candidates have a satisfying experience during the hiring process, features like mobile optimization and tailored communication are being given top priority. Additionally, ATS systems in the US are developing to support compliance hiring procedures while encouraging a diverse workforce in light of regulatory changes and a growing emphasis on diversity and inclusion. This focus is in line with business objectives to create more inclusive workplaces as well as reflecting societal shifts. The US market for applicant tracking systems is at a turning point, propelled by new technology and a reimagined comprehension of hiring dynamics.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Applicant Tracking Systems Market Drivers
Rapid Digital Transformation in Recruitment
The increasing trend of digital transformation across various industries in the United States is significantly driving the US Applicant Tracking Systems Market Industry. According to the United States Department of Labor, approximately 80% of employers now rely on digital tools for recruiting processes. This trend is fueled by the need for streamlined hiring processes and improved candidate experiences, largely pushed by advancements in technology and the demand for efficient operations.
Major companies such as LinkedIn and Workday have developed solutions that integrate seamlessly with Applicant Tracking Systems, enhancing their usability and functionality. As businesses increasingly adopt these tools, the market for Applicant Tracking Systems is expected to expand. By 2024, it is projected that the total number of job postings using Applicant Tracking Systems could exceed 10 million monthly, a metric that indicates rising adoption and a corresponding market growth potential.
Shift Towards Remote Work
The COVID-19 pandemic induced a rapid and sustained shift towards remote work in the United States, necessitating effective recruitment solutions for a dispersed workforce. A report from the U.S. Bureau of Labor Statistics highlights that remote work has doubled since 2019, with approximately 20% of the workforce now employed remotely. This change has led organizations to invest in robust Applicant Tracking Systems to streamline the hiring process while ensuring compliance with various geographic regulations.
Companies such as Greenhouse and Lever have launched features specifically tailored to remote hiring, which has bolstered the demand for Applicant Tracking Systems in the US. As organizations continue to adapt to this new reality, the US Applicant Tracking Systems Market Industry is expected to see significant growth through innovative enhancements in recruitment technology.
Increased Emphasis on Diversity and Inclusion
In recent years, there has been a significant push from both regulatory bodies and organizations for greater diversity and inclusion in hiring practices in the United States. According to the U.S. Equal Employment Opportunity Commission, diverse teams outperform their counterparts on various metrics, leading to increased profitability and innovation. As a result, businesses are implementing Applicant Tracking Systems that incorporate features to help mitigate unconscious bias, such as anonymized applications and analytics to track diversity metrics.
Notable organizations like IBM and Microsoft have been at the forefront of enhancing their recruitment processes, which has influenced others in the industry to follow suit. This societal shift towards implementing diversity and inclusion initiatives is poised to propel the US Applicant Tracking Systems Market Industry, as companies are recognizing the value of diverse talent in driving organizational success.
Integration of Artificial Intelligence in Recruitment
The US Applicant Tracking Systems Market Industry is experiencing substantial growth due to the integration of Artificial Intelligence (AI) in recruitment processes. AI technologies are being utilized to enhance candidate sourcing, screening, and engagement, which leads to more efficient hiring practices. According to a survey by the National Association of Colleges and Employers, approximately 60% of employers are already using or plan to use AI-driven tools within their Applicant Tracking Systems.
Companies like iCIMS and SmartRecruiters have pioneered innovative AI features to help organizations identify top talent faster and reduce bias in hiring. The accelerating deployment of AI-driven recruitment technologies underscores a significant market driver as businesses in the US strive for competitive advantages in talent acquisition.
US Applicant Tracking Systems Market Segment Insights
Applicant Tracking Systems Market Service Insights
The US Applicant Tracking Systems Market has been experiencing considerable growth, particularly in the Service segment, which encompasses a variety of offerings aimed at enhancing recruitment processes. The Service area is fundamentally crucial as it addresses the increasing demand for efficient hiring practices among organizations aiming to streamline their recruitment efforts. With the modernization of recruitment technology, companies are increasingly turning to Managed services to handle their applicant tracking system operations, thereby allowing them to focus on core business functions.
This reflects a broader market trend towards outsourcing, which is driven by the necessity for cost savings and access to specialized expertise. Professional services also play an essential role in this segment, providing necessary consulting, implementation, and support services that ensure client companies maximize the performance of their Applicant Tracking Systems. The combination of Managed services and Professional services contributes significantly to the overall efficiency, adaptability, and implementation of technology, leading to improved hiring outcomes.
Moreover, as the intricacies of hiring evolve, ongoing support and tailored solutions from these services enable organizations to stay compliant with changing labor regulations, enhance user experiences, and adopt data-driven strategies for recruitment. This highlights not only the importance of the Service segment in driving market growth but also its capacity to adapt and respond to the dynamic needs of the hiring landscape. Companies that invest in these service offerings often find themselves with a competitive edge, supporting more agile recruitment processes that can respond to the fast-paced changes in the labor market.
As organizations in the US continue to embrace digital transformation, the Service segment is anticipated to remain a pivotal component in the ongoing evolution of the Applicant Tracking Systems Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Applicant Tracking Systems Market Deployment Insights
The Deployment segment of the US Applicant Tracking Systems Market plays a crucial role in addressing the varied needs of organizations, with a focus on On-Cloud and On-Premises solutions. The On-Cloud deployment model has gained traction due to its flexibility, scalability, and lower upfront costs, making it an appealing choice for many businesses, particularly small to mid-sized enterprises seeking to streamline their recruitment processes. Meanwhile, On-Premises solutions remain significant for larger organizations that prioritize data security and custom configurations tailored to specific organizational needs.
According to various industry insights, the increasing digitization of HR processes and the growing emphasis on data-driven recruitment strategies are key drivers behind the development of these deployment options. The ongoing evolution of technology and the demand for enhanced user experience continue to shape the Deployment segment, creating opportunities for innovative solutions that cater to emerging trends in the labor market. Overall, the dynamic landscape of the US Applicant Tracking Systems Market reveals a balanced interplay between On-Cloud and On-Premises deployments, each serving distinct organizational requirements while driving market growth.
Applicant Tracking Systems Market Organization Size Insights
The US Applicant Tracking Systems Market exhibits distinct characteristics when segmented by Organization Size, which plays a crucial role in shaping the dynamics of market growth and adoption. Organizations are typically categorized as Small and Medium Enterprises (SMEs), Large and Big enterprises, each with unique needs and operational complexities. SMEs are increasingly leveraging Applicant Tracking Systems to streamline hiring processes, enhance candidate experience, and improve overall recruitment efficiency. This focus on efficiency is vital in a competitive job market, as SMEs often face talent shortages.
Meanwhile, Large organizations benefit from sophisticated ATM solutions to manage high volumes of applications and maintain compliance with labor regulations, making them significant players in this segment. Big enterprises, on the other hand, often dominate market share due to their extensive resources and the need for customized solutions that align with their complex HR strategies. This segmentation provides valuable insights into the adoption trends and challenges across different organization sizes, highlighting the potential for targeted marketing and the development of tailored solutions that can address the specific requirements and pain points within each category.
US Applicant Tracking Systems Market Key Players and Competitive Insights
The US Applicant Tracking Systems Market has experienced significant growth due to the increasing need for efficiency in the hiring process and the ongoing demand for talent across various industries. Companies are continuously seeking ways to streamline their recruitment efforts and enhance candidate experiences, resulting in a competitive landscape filled with diverse solutions designed to meet the specific needs of organizations. As businesses look to improve their onboarding processes and data management capabilities, they are turning to these systems, which stand out not only for their efficiency but also for their ability to provide insights into recruitment analytics. The competition within this market comprises various players, each offering unique features, integrations, and user experiences, thereby making it essential for organizations to carefully evaluate their options.
Greenhouse has carved a distinct niche in the US Applicant Tracking Systems Market by emphasizing collaborative hiring, which allows users to involve multiple team members seamlessly in the recruitment process. The platform is noted for its robust analytics and reporting functionalities, enabling businesses to understand their hiring trends and make data-driven decisions. Greenhouse distinguishes itself through its user-friendly interface and extensive integration options, allowing organizations to tailor the system to their specific recruitment workflows. Its strength lies in its commitment to creating an inclusive hiring process, which resonates well with modern companies focused on diversity and employee engagement. Furthermore, Greenhouse continuously innovates by incorporating user feedback, ensuring that it meets the evolving needs of its clients in the competitive landscape of applicant tracking.
ApplicantPro holds a prominent position in the US Applicant Tracking Systems Market by offering a suite of services designed for small to medium-sized businesses seeking affordable and effective recruitment solutions. The company provides key products such as applicant tracking, onboarding tools, and job posting services to facilitate a comprehensive hiring experience. ApplicantPro boasts a strong market presence due to its personalized customer service and commitment to helping businesses navigate the complexities of recruitment. Its strengths include customizable applications and user-friendly technology, which makes it accessible to a broader audience. The company has also pursued strategic partnerships and integrations to expand its offerings, enhancing its competitive edge. By tapping into the needs of smaller enterprises, ApplicantPro has managed to establish itself as a reliable partner in the realm of applicant tracking, making it a strong contender amid the evolving dynamics of the US market.
Key Companies in the US Applicant Tracking Systems Market Include
US Applicant Tracking Systems Market Industry Developments
The US Applicant Tracking Systems Market has seen notable developments recently. Greenhouse announced enhancements to its platform in September 2023, focusing on improving user experience and integration capabilities with various HR tools. ApplicantPro also expanded its service offerings, aiming to cater to the growing needs of mid-sized businesses. In a significant merger in June 2023, Ultimate Software and Ceridian joined forces to enhance their cloud-based solutions, promising more comprehensive services for HR professionals. Jobvite has reported strong growth in its market valuation, with increased demand for its integrated recruitment solutions, further impacting the overall market dynamics.
In October 2022, Oracle unveiled updates to its Talent Management Cloud, aiming to streamline the recruitment process. Additionally, the rapid shift toward remote work has driven the need for sophisticated Applicant Tracking Systems, with companies like SmartRecruiters and iCIMS experiencing significant increases in usage and subscriptions. The overall market remains competitive, with firms continuously innovating to meet evolving demands, underscoring the dynamism of the US Applicant Tracking Systems landscape as companies strive for enhanced efficiencies in their hiring processes.
Applicant Tracking Systems Market Segmentation Insights
Applicant Tracking Systems Market Service Outlook
Applicant Tracking Systems Market Deployment Outlook
Applicant Tracking Systems Market Organization Size Outlook
| Report Attribute/Metric | Details |
| Market Size 2018 | 639.24(USD Million) |
| Market Size 2024 | 661.08(USD Million) |
| Market Size 2035 | 1251.81 (USD Million) |
| Compound Annual Growth Rate (CAGR) | 5.976% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Million |
| Key Companies Profiled | Greenhouse, ApplicantPro, SAP, Jobvite, Oracle, Korn Ferry, ADP, iCIMS, Bullhorn, SmartRecruiters, Lever, BambooHR, Workday |
| Segments Covered | Service, Deployment, Organization Size |
| Key Market Opportunities | AI-driven recruitment solutions, Integration with HR tech, Enhanced candidate experience tools, Customizable analytics and reporting, Remote hiring innovations |
| Key Market Dynamics | Cloud-based solutions adoption, AI integration trends, Compliance and regulation pressures, Increasing demand for user-friendly interfaces, Competitive pricing strategies |
| Countries Covered | US |
Frequently Asked Questions (FAQ) :
The US Applicant Tracking Systems Market is expected to be valued at 661.08 USD Million in 2024.
By 2035, the US Applicant Tracking Systems Market is projected to reach a value of 1251.87 USD Million.
The US Applicant Tracking Systems Market is expected to grow at a CAGR of 5.976 % from 2025 to 2035.
Managed services in the US Applicant Tracking Systems Market is projected to be valued at 625.0 USD Million by 2035.
The professional services segment is expected to reach a value of 626.87 USD Million by 2035 in the US Applicant Tracking Systems Market.
Key players in the US Applicant Tracking Systems Market include Greenhouse, ApplicantPro, Jobvite, and Oracle.
Growth drivers include the increasing demand for efficient hiring processes and advancements in technology aiding recruitment.
Challenges include competition among established players and the need for continuous technological upgrades.
Managed services are projected to value 331.08 USD Million in 2024, closely competing with professional services at 330.0 USD Million.
Emerging trends include the integration of artificial intelligence and data analytics to enhance recruitment efficiency.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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