The Global Applicant Tracking System Market size is expected to reach $3.3 billion by 2027, rising at a market growth of 7.1% CAGR during the forecast period.
An applicant tracking system (ATS) is an application that collects and stores resumes in a database to handle an organization's recruitment process. After scanning and indexing resumes, ATS stores them in a database and provides recruiters with an online view of job searchers. The majority of companies utilize some type of applicant tracking system application to process job applications and manage a huge volume of resume data. The data is either retrieved from internal applications using ATSs or from social networking websites like LinkedIn, Facebook, and Twitter.
While applicant tracking systems may be used by organizations of all sizes, they're especially effective for those who hire personnel on a regular basis or receive a big number of applications for each post. If a company screens more than 1000 resumes each year, an applicant tracking system is likely to provide a large return on investment. They'll also gain from an ATS tracking system if their employment process is long or complicated, or if they have issues with recruiting and administration. Time-to-fill can be greatly reduced with applicant tracking tools. This means that firms who struggle to manage the burden associated with huge pools of candidates will benefit greatly from the shortened procedure. The applicant tracking systems market is driven by a rise in the need for cost savings, an increase in the need for strategic and enhanced hiring decisions, and the introduction of social media.
Due to the existence of global and growing companies in the market, the applicant tracking system market is progressing. The substantial adoption of cloud services and security infrastructure are the key factors that drive the adoption of ATS solutions among enterprises and SMEs across various verticals, including manufacturing, consumer goods, and retail, transportation and logistics, government, BFSI, telecom and IT, energy and utilities, healthcare and life sciences, and others. Vendors in the market should expect additional prospects in developing nations.
The growing advancements in cloud-based platforms, the internet of things (IoT), server-less architecture, and big data are all helping to propel the ATS market forward. Other factors, such as the need for a more strategic and effective hiring procedure, as well as the growing demand for cost-cutting, are expected to enhance the industry in the future years. Additionally, decreasing latency and lower ATS costs are expected to fuel the industry.
The COVID-19 outbreak and the ensuing pandemic have benefited the market for applicant tracking systems. The present economic recession, which has been exacerbated by COVID-19, highlights the need for alternative business systems. Cloud computing and migration to cloud applicant tracking system solutions have become critical for enterprises. Companies are increasingly turning to technology-assisted recruitment solutions that can be used remotely and ensure hiring as well as company continuity in the event of a disruption. With the increased use of remote working modes and the ongoing COVID-19 pandemic, ATS has acquired market traction to cater to virtual recruitment.
Many individuals have had a dreadful job-hunting experience. With an applicant monitoring system, businesses can provide a better candidate experience and reduce candidate discontent. It provides a faster application process, a mechanism for candidates to track the status of their applications, and increased communication during the recruiting process. Applicant tracking software makes it simple to keep track of applicants and communicate with them on a regular basis. Recruiters and hiring managers can use dashboards and notifications to keep communication top of mind. A systematic follow-up and adherence to the agreed timetable from the HR teams lead to a positive experience for job applicants. Thus, ATS software ensures that recruiters and candidates have a healthy and pleasant relationship.
Due to the powerful and flexible infrastructure, the cloud computing architecture is frequently used. Many businesses are turning to cloud solutions to ease data storage because they allow remote servers accessible over the internet and access to almost unlimited computing capacity. The use of a cloud-based approach allows businesses to manage all of their apps because it gives extremely difficult analytics that runs in the background. SMEs continuously search for ways to update their applications and infrastructures by utilizing cloud-based platforms like Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS). Cloud-based security solutions reduce the need for on-premises security devices and instead rely on cloud services to protect applications, data, users, and devices.
The design and execution hurdles of deploying the ATS model on a new or existing infrastructure are numerous. The paradigm encourages enterprise IT teams to rethink network security, moving away from a network perimeter-based strategy and toward a user-based and application-based approach. Redesigning and redeploying online and mobile applications can be time-consuming and labor-intensive. Most networks aren't built with cybersecurity in mind, thus upgrading to the new IT security paradigm necessitates a thorough examination of network infrastructure, services, and traffic. Using ATS software to re-model the recruiting and recruitment process necessitates a precise and thorough understanding of each user, device, application, and resource.
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). The SMEs segment observed a substantial revenue share in the applicant tracking system market in 2020. Since these businesses do not have a significant budget, it is vital to reduce expenses as much as feasible. The recruiter saves time and money by not having to go through resumes, giving him or her more time to do other things.
Based on Component, the market is segmented into Software and Services. The services segment witnessed a substantial revenue share of the applicant tracking system market in 2020. Services such as consulting, integration and implementation, training and education, and maintenance and support are required at various stages, from pre-sale requirement evaluation to post-sale product deployment and execution, allowing the client to achieve the highest possible return on investment. Services play an important role in bringing the solution on-board, providing training, and managing and sustaining the software. Consultants, solution experts, and dedicated project management teams who specialize in the design and delivery of key decision support software, tools, and services are among the companies that provide these services.
Based on Deployment Model, the market is segmented into On-premise and Cloud. The on-premise segment procured the largest revenue share of the applicant tracking system market in 2020. The program is deployed in servers housed on their premises in On-premise ATS, and companies are responsible for licensing, updates, and other costs. On-premise ATS can help firms with data privacy concerns because they can store and use all of the system's features in their workplace.
Based on Vertical, the market is segmented into BFSI, Telecom & IT, Retail & Consumer Goods, Manufacturing, Healthcare, Government & Defense, Transportation & Logistics, Energy & Utility, and Others. The BFSI segment recorded the largest revenue share of the applicant tracking system market in 2020. Employers in the banking and financial industries are increasingly using applicant tracking systems to process a large number of applications promptly. These programs collect text from a candidate's CV and scan it for abilities that match the candidate to relevant jobs or job descriptions. This means that candidates should avoid using sophisticated CV templates, symbols, advanced formatting such as headings, lines, borders, or footers, and, of course, misspellings, as these may cause problems with the text extraction process (parsing).
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 2.1 Billion |
| Market size forecast in 2027 | USD 3.3 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 7.1% from 2021 to 2027 |
| Number of Pages | 282 |
| Number of Tables | 473 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Enterprise Size, Deployment Model, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America acquired the largest revenue share of the applicant tracking system market in 2020. Since industrialized economies such as the United States (US) and Canada are involved, North America is likely to have the largest share. As practically all of the big firms have their headquarters in the area, it is the most developed region on the ATS market. With the growing use of digital business tactics in North America, companies are moving toward new and upgraded technology. In addition, to obtain a competitive edge and improve operations, businesses have invested in new technologies. All of these variables are driving forces in this region's market. Another factor expected to boost expansion in the target market in North America is the rapid acceptance of cloud-based services.
Free Valuable Insights: Global Applicant Tracking System Market size to reach USD 3.3 Billion by 2027
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, Oracle Corporation and SAP SE are the forerunners in the Applicant Tracking System Market. Companies such as ADP, Inc., iCIMS, Inc. and Bullhorn, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Oracle Corporation, SAP SE, Infor, Inc., Workday, Inc., ADP, Inc., Zoho Corporation Pvt. ltd., Bullhorn, Inc., Cornerstone OnDemand, Inc., and iCIMS, Inc.
By Enterprise Size
By Component
By Deployment Model
By Vertical
By Geography
The global applicant tracking system market size is expected to reach $3.3 billion by 2027.
Rise in the number of adventurous and sport events are driving the market in coming years, however, rising implementation of cloud based recruitment solutions limited the growth of the market.
IBM Corporation, Oracle Corporation, SAP SE, Infor, Inc., Workday, Inc., ADP, Inc., Zoho Corporation Pvt. ltd., Bullhorn, Inc., Cornerstone OnDemand, Inc., and iCIMS, Inc.
The Large Enterprises segment acquired maximum revenue share in the Global Applicant Tracking System Market by Enterprise Size in 2020; thereby, achieving a market value of $2.1 billion by 2027.
The North America market dominated the Global Applicant Tracking System Market by Region in 2020, and would continue to be a dominant market till 2027.
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