Applicant Tracking System (ATS) Market Size, Share, Growth, and Industry Analysis, By Type (On-Premise & Cloud-Based), By Application (BFSI, IT and Telecommunications, Government and Public Sector, Retail, Manufacturing, Healthcare and Life Sciences & Others), and Regional Insights and Forecast to 2033

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APPLICANT TRACKING SYSTEM (ATS) MARKET OVERVIEW

The applicant tracking system (ats) market stood at approximately USD 2.56 billion in 2024 and is set to expand to USD 2.79 billion in 2025, eventually reaching USD 4.05 billion by 2033, driven by a CAGR of 9.05%.

This tracking system (ATS) is an application that is intended to help an organisation in the effective management of its human resources. It consolidates candidate details, streamlines work such as reviewing resumes, and sets up interviews, as well as offering essential metrics to help businesses make more informed decisions regarding their employees. ATS enhances efficiency, reduces time taken in the hiring process, and provides a quality experience to the candidates.

COVID-19 IMPACT

Applicant Tracking System (ATS) Industry Had a Positive Effect due to Remote Working

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic played a crucial role in driving the implementation of ATS solutions at a much faster rate. With the deterioration of physical office environments and the shift to remote working arrangements, it’s clear that virtualised recruitment models are necessary. ATS provided companies the opportunity to effectively recruit remotely, starting with candidate sifting and interview and recruitment until the employee took up the new role. Moreover, the pandemic uncovered that one has to set and ponder over specific metrics when hiring, which is ATS strength. This increased demand put more pressure on the NICs to invest in ATS technology and resulted in enhancing innovation and growing the market.

LATEST TRENDS

Optimisation to Propel the Market Growth

The emerging trends in the ATS market are about optimisation, engagement, and innovation, where efficiency, candidate experience, and emerging technologies are deeply rooted. People are exploring the use of technology, especially AI and machine learning, to reduce time spent on tasks such as screening resumes or matching the right candidate to a given job. Also, there is much more focus on the candidate experience; modern ATS provides candidate experience and ease of application. 

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APPLICANT TRACKING SYSTEM (ATS) MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into On-Premise & Cloud-Based

• On-premise ATS: It works to the fact that organisations hold outright control of data and infrastructure. May be customised to fit particular organisation requirements and process operations. Increased protection of privacy can be provided for such information.

• Cloud-Based ATS: lower initial cost since software is hosted and run from remote servers. Flexible in scale depending on the requirements of a business entity. Can be used anytime and from any location that the Internet is available.

By Application

Based on application, the global market can be categorized into BFSI, IT and Telecommunications, Government and Public Sector, Retail, Manufacturing, Healthcare and Life Sciences & Others

• BFSI: Extended workflows that need sophisticated and comprehensive tools and resources of an ATS. The importance of strong security procedures for the financial information of organisations.

• IT and Telecommunications: Significant proportion of technical positions suggest that skill specificity leads to a large number of matches. Allow for the targeting of high-profile IT talent in what has always been a saturated market.

• Government and Public Sector: Compliance with all the regulations set by the government and the procurement rules and regulations. The scarcity of transparent and aggressive hiring systems.

• Retail: Shortage of employees required during particular seasons and high turnover rates. Concentration on the employee interface and recruiting for certain tactical persona characteristics.

• Manufacturing: Recruiting across a broad spectrum of employment grades from the trade and technical workforce to the managerial level. The need to attract the right talents and workforce for production consumption.

• Healthcare and Life Sciences: cumbersome and involved staffing procedures with regards to hard-to-fill positions. Compliance with all the codes of ethics that are governing the industry and observance of privacy laws.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising Demand for Automation and Digitalisation to Expand the Market

A factor in the Applicant Tracking System (ATS) market growth is the Rising Demand for Automation and Digitalisation. The expanding importance of intricate and talent acquisition processes, along with the development of these recruitment needs for the increasing remote work sector, has bolstered the demand for ATS solutions.

Advancements in Technology to Advance the Market

ATS platforms today integrate AI, machine learning, and more advanced technologies that refine candidate screening, decision-making processes, and candidate experience.

Restraining Factor

High Cost of Adoption to Pose Potential Impediments on this Market

One of the most significant challenges facing the Applicant Tracking System (ATS) Market share is its high cost of adoption—more so for large businesses. On-premise ATS solutions have high initial capital costs but have low recurring costs regarding equipment and software.

Opportunity

Better Candidate Experience to Create Opportunity in this Market

This market has great potential in the increasing trends to provide better candidate experience. ATS, being the first and primary interface candidates tend to interact with their employers, are becoming important tools for employers to ensure a positive candidate experience as companies compete for talent.

Challenge

Vendor Lock-In to Pose Potential Challenge for this Market

Vendor lock-in remains the most significant threat to this market, as investors are likely to be discouraged by inadequate investment returns. Many organisations, once they make a decision to implement an ATS solution, then the amount of time and money invested in a specific provider can be a lot to change to another provider. 

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APPLICANT TRACKING SYSTEM (ATS) MARKET REGIONAL INSIGHTS

• North America 

North America is the leading market for ATS across the globe. Technological development in the region and increased emphasis on both efficiency and innovation promote the use of complex ATS solutions. The large volume of multinationals and presence of many hi-tech centres also increase the need for advanced recruitment solutions. The United States Applicant Tracking System (ATS) Market has continually been at the forefront of technological advancement and the adoption of advanced technologies in the human resources sector, including the use of ATS. 

• Europe

Europe also remains one of the potential markets for ATS, given the wide variety of industries and overall different degrees of digitalisation. Even though certain countries are already investing in and using advanced HR technologies, others are yet to embark on their journey to digitization. It is now evident that regulations such as GDPR have shaped the development of ATS solutions that comply with the data privacy laws of the region.

• Asia

The Asia-Pacific region is one of the largest and fastest-growing markets for ATS due to increasing economic development, increasing levels of urbanisation, and a growing employment rate. Larger-populated countries such as India and China, along with their touchpoints in various industries, are opportunities for ATS providers. Nevertheless, elements such as the difference in total adoption of technology and cultural difference affect the adoption and utilisation of ATS solutions within this region.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through HR Specializing

Leading participants of the industrial sectors are engaged to dominate the ATS market and thereby determine its effectiveness. To a large extent, these companies are industry leaders across the globe with tech focus and/or specifically specialising in HR tech—in concept and/or offering—and they continue to drive the market forward by offering new and advanced features and functionalities. ATS solutions have many functions, like AI-powered candidate matching, analytics, and integration with other tools in HR; they use a lot of money in research and development to make the operations of the ATS solutions better. Also, these players define norms and trends in the industry, setting the standards for how organisations solve the task of recruitment and talent management. Being specifiers of the pace at which technology developments and other industry advancements should occur, key industrial players occupy the strategic position of determining the future of the ATS market.

List of Top Applicant Tracking System (Ats) Companies

• iCIMS (U.S.)
• Zoho Corp. (India)
• ADP (U.S.)
• Oracle (U.S.)
• IBM (U.S.)

KEY INDUSTRY DEVELOPMENTS

March 2024: In March 2024, WorkLLama, a technology supplier of an AI-powered talent marketing, relationship management, and direct sourcing platform, launched its latest innovation: a fully automated and centralised this tracking system (ATS). This new form of ATS is expected to enhance the existing hiring process through tried and tested means or by providing essential information to the recruiters. 

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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