PUBLISHER: The Business Research Company | PRODUCT CODE: 1426426
PUBLISHER: The Business Research Company | PRODUCT CODE: 1426426
An applicant tracking system (ATS) is a software application employed by companies and organizations to streamline and manage their recruitment and hiring processes. These systems are designed to automate and centralize various aspects of the hiring process, simplifying the task for HR professionals and hiring managers in finding, tracking, and evaluating job applicants.
The primary components of an applicant tracking system include software and services. Software encompasses a set of instructions, programs, and data that empower a computer or electronic device to execute specific tasks, functions, or operations. These systems are deployed through various modes such as on-premises and cloud across organizations ranging from small and medium-sized enterprises (SMEs) to large enterprises. The end-users span various industries, including banking, financial services, and insurance (BFSI), government, manufacturing, telecom, information technology (IT), consumer goods and retail, healthcare and life sciences, energy and utilities, transportation and logistics, and others.
The application tracking system market research report is one of a series of new reports from The Business Research Company that provides application tracking system market statistics, including application tracking system industry global market size, regional shares, competitors with an application tracking system market share, detailed application tracking system market segments, market trends and opportunities, and any further data you may need to thrive in the application tracking system industry. This application tracking system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The applicant tracking system market size has grown strongly in recent years. It will grow from $2.6 billion in 2023 to $2.79 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth observed in the historical period can be attributed to several factors, including the automation of recruitment processes, the need for compliance with regulatory requirements, the establishment of centralized candidate databases, and considerations of scalability.
The applicant tracking system market size is expected to see strong growth in the next few years. It will grow to $3.71 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. The anticipated growth in the forecast period can be attributed to factors such as integration with HR software, the adoption of mobile recruiting solutions, an increased emphasis on diversity and inclusion, improvements in candidate experience, and a focus on data security and compliance. Notable trends expected in the forecast period include the incorporation of artificial intelligence (AI) and machine learning, advancements in candidate experience, features promoting diversity and inclusion, the use of predictive analytics for recruitment, and integration with the broader HR software ecosystem.
The anticipated increase in the number of job applicants is poised to drive the growth of the applicant tracking system market in the future. Job applicants are individuals who submit their applications, typically in the form of resumes, to be considered for employment opportunities within a company or organization. Applicant tracking systems play a crucial role in streamlining the application process, making it more efficient and faster for applicants, and enhancing communication between applicants and recruiters. For example, based on data and analysis from Census 2021 published by The Office for National Statistics, the expected number of vacancies in the UK grew from 964,000 (May to July 2021) to 1,275,000 (May to July 2022). Therefore, the increasing number of job applicants is a key factor driving the growth of the applicant tracking system market.
The advent of social media is expected to fuel the growth of the applicant tracking system market in the coming years. Social media encompasses online platforms and websites that enable users to create, share, and interact with content, information, and other users within a virtual social network. Social media plays a vital role in applicant tracking systems by enabling recruiters to source and assess candidates through online profiles, expanding the candidate pool and providing insights into their qualifications and suitability for job positions. As of September 2023, according to Made in CA, Canada has more than 33.1 million social media users, with Facebook being the most widely used platform, boasting over 26 million users, and Facebook Messenger being the preferred messenger app with over 22 million users. Thus, the emergence of social media is a driving force behind the growth of the applicant tracking system market.
High investment costs represent a significant restraint on the growth of the applicant tracking system market during the forecast period. These costs pose a considerable challenge for companies, especially small and medium-sized businesses, as they may lack the resources to invest in applicant tracking systems. For instance, in June 2023, according to peopleHum, a human capital management platform based in Singapore, the annual cost of an applicant tracking system is $1,548, which may be beyond the financial capacity of small firms and startups. Therefore, the high investment costs serve as a hindrance to the growth of the applicant tracking system market.
Key companies in the applicant tracking system market are adopting innovative technologies, such as AI-powered application systems, to enhance user experiences by making the application process more efficient and user-friendly. AI-powered applicant tracking systems are designed to streamline recruitment and redefine talent acquisition through the integration of artificial intelligence (AI) technology. For example, in August 2023, Centric Group Inc., a US-based software development company, introduced Safaa ATS, an AI-powered applicant tracking system featuring unique elements such as AI-driven shortlisting, a fully branded job portal, cloud-based access, pre-packaged intranet, customizable workflows, and cutting-edge features to streamline recruitment and redefine talent acquisition. These features aim to simplify the recruitment process, improve efficiency, and enhance the overall candidate experience.
In February 2022, SmartRecruiters, a San Francisco-based hiring success company, acquired Attrax for an undisclosed amount. This acquisition enables customers to create data-driven, curated career sites that enhance the candidate experience and improve recruiting results. Attrax is a UK-based provider of career site software with an integrated applicant tracking system.
Major companies operating in the applicant tracking system market report are International Business Machines Corporation, Oracle Corporation, SAP SE, Automatic Data Processing Inc., Workday Inc., Ultimate Kronos Group, Paycor HCM Inc., Bullhorn Inc., Cornerstone OnDemand Inc., iCIMS Inc., PeopleFluent Inc., Ceipal Corporation, Workable Technology Limited, BambooHR, SmartRecruiters Inc., Jobvite Inc., Lever, Trakstar Hire, Bullhorn Inc., ADR Inc., Silkroad Technology Inc., Greenhouse Software Inc., ClearCompany Inc., Hireku Inc., Symphony Talent LLC, TalentNest, ATS OnDemand
North America was the largest region in the applicant tracking system market in 2023. The regions covered in the applicant tracking system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the applicant tracking system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The applicant tracking system market consists of revenues earned by entities by providing services such as job posting and distribution, resume parsing and storage, candidate management, interview scheduling, analytics and reporting services, data security, and compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Applicant Tracking System Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on applicant tracking system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for applicant tracking system? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The applicant tracking system market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.