April 20, 2024
Ict

“Applicant Tracking System Market is Estimated to Witness High Growth Owing to Increasing Needs for Streamlining Recruitment Processes”

The applicant tracking system (ATS) market has witnessed significant growth in recent years. ATS helps simplify the recruitment process by enabling organizations to integrate applicant tracking, candidate relationship management, and HR processes on a single software platform. Through features like candidate sourcing, skills testing, resume database, and online applications, ATS provides a centralized way to manage the entire recruitment lifecycle from onboarding to offboarding applicants. With ATS, HR teams can effectively assess candidate qualifications, schedule interviews, perform background checks, and make faster hiring decisions. The growing complexity of recruitment processes across various industries has increased the demand for automated applicant tracking tools.

The global applicant tracking system market is estimated to be valued at US$ 2.67 billion in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030. Key players operating in the applicant tracking system market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners), and iCIMS Inc.

Key Takeaways
Key players operating in the applicant tracking system market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners), and iCIMS Inc. The increasing need among organizations to streamline recruitment processes and cut down hiring costs presents significant growth opportunities in the ATS market. Various companies are focusing on deploying advanced ATS tools integrated with AI, analytics, and other technologies to enhance candidate experience and improve hiring manager productivity. Geographically, the market is witnessing increasing demand from North America, Europe, Asia Pacific, Latin America, and Middle East & Africa as more enterprises adopt applicant tracking systems.

Market Drivers
The key driver fueling the applicant tracking system market growth is the increasing complexity of recruitment processes across various industries. With rising candidates pools, screening large volumes of resumes and scheduling interviews manually has become inefficient for recruiters. ATS helps address this challenge by automating repetitive tasks and streamlining different stages of hiring. Growing focus on candidate experience management and the need to improve hiring ROI are also driving the demand for advanced ATS solutions. Integrations with social media profiles and background verification tools allow recruiters to gain deeper insights into candidates, thereby expediting hiring decisions.

PEST Analysis

Political: Applicant tracking systems are required to comply with various government rules and regulations related to data privacy and security such as GDPR in European Union.

Economic: Unemployment rates have a significant impact on the demand for applicant tracking systems among organizations. During economically prosperous times, the demand is high as more vacancies need to be filled.

Social: Changing demographics and workforce trends influence the demand for applicant tracking systems. Younger generations expect a seamless digital experience during the hiring process which is facilitated by advanced applicant tracking systems.

Technological: Adoption of advanced technologies like artificial intelligence, machine learning and analytics enables applicant tracking systems to streamline recruiting workflows and provide candidates with personalized experiences. Automation of repetitive tasks also improves efficiency.

North America holds the largest share of the applicant tracking system market in terms of value. This can be attributed to presence of major players and established HR technologies adoptions rates in countries like United States.

The Asia Pacific region is expected to witness the fastest growth during the forecast period owing to rapid digital transformations and growing economies with large population like India and China. Increasing investments in technologies to simplify and improve hiring functions at organizations further supports market growth in Asia Pacific.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it