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An applicant tracking system (ATS) is a software application that enables the electronic handling of recruitment needs. It manages the entire recruitment cycle starting from vacancy posting to candidate screening to interview scheduling and onboarding. ATS helps reduce time-to-hire by automatically notifying vacancies to potential candidates, screening profiles as per job requirements and tracking applicants from sourcing to selection. It offers advantages like consolidating candidate data, enabling collaboration between hiring managers, scheduling interviews and keeping applicants informed at each stage. With organizations facing talent crunch globally, there is a pressing need for streamlining recruitment using automated tools for sourcing, assessing and engaging candidates.
The Global applicant tracking system market is estimated to be valued at US$ 2.67 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the Applicant Tracking System market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners), iCIMS Inc.
Second paragraph is talking about the key opportunities in market providing opportunities for consolidation in the market owing to increasing demand, growing need to automate recruiting for costs savings and compliance, and rising demand for powerful API and integration capabilities.
Third paragraph is talking about global expansion of market covering growing adoption in small and medium enterprises globally, increasing penetration in regions like Asia Pacific and Middle East & Africa driven by workforce management needs of organizations and investments in technologies.
Market drivers
The high growth of the ATS market is attributed to the rising need for streamlining recruitment processes. Organizations across industries are under pressure to hire top talents quickly. An ATS enables centralizing job postings, aggregating profiles of active and passive candidates, automating tasks like screening, scheduling and keeping applicants informed, thereby improving hiring manager and candidate experience. It also ensures compliance with local labor laws. As permanent hiring shifts to contingent workforce, there is increasing demand for ATS that integrate with staffing platforms, permitting just-in-time hiring.
PEST Analysis
Political: Applicant tracking systems may face enhanced data privacy regulations to ensure the security and anonymity of job applicants’ personal information. Laws around the use of AI in hiring processes could also impact vendors.
Economic: In an inflationary economy, employers may increase their use of applicant tracking systems to streamline and reduce the costs of recruitment and hiring new employees. Systems that optimize time-to-hire can help contain labor expenses.
Social: Younger job seekers entering the workforce have grown up with technology and may expect a digital, mobile-friendly application process. Meeting these expectations could spur greater adoption of cloud-based applicant tracking among small businesses.
Technological: Advanced AI capabilities being added to applicant tracking systems, such as candidate matching and skills assessment, may revolutionize online recruiting. Adoption of these new features depends on enterprises embracing more automated, data-driven hiring workflows.
Geographical concentration
North America currently accounts for the largest share of the global applicant tracking system market value due to widespread adoption by large organizations. The developed status and high recruitment volumes in countries like the United States and Canada have supported investments in applicant tracking software.
Fastest growing region
The Asia Pacific region is expected to witness the fastest growth in demand for applicant tracking systems over the forecast period. With expanding industries, urbanization, and rising Internet usage, more companies recognize the value of digitizing their hiring processes across developing countries like India and Indonesia. The immature state of current recruitment software use indicates significant room for vendor expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
