Applicant Tracking Systems Market Size, Share, Industry Trends and Forecast to 2030

Applicant Tracking Systems Market Size & CAGR in 2021

The global applicant tracking systems market is anticipated to have a growth rate of 9.37% CAGR in 2021. With this growth rate, the market is expected to reach a value of USD 4.23 billion by the end of the year.

COVID-19 Impact on the Applicant Tracking Systems Market

The outbreak of the COVID-19 virus has significantly impacted the applicant tracking systems market worldwide. Due to the pandemic, many businesses had to shift to remote work settings, leading to an increased demand for effective ATS solutions to streamline the recruitment process virtually.

The COVID-19 pandemic accelerated the digital transformation of HR processes, prompting organizations to adopt advanced ATS tools to manage the influx of job applications and conduct virtual interviews efficiently. This surge in demand for ATS solutions positively impacted the market growth during the pandemic.

Applicant Tracking Systems Dynamics

The applicant tracking systems market is driven by factors such as the increasing need for efficient recruitment processes, rising demand for automation in HR functions, and the growing emphasis on improving the candidate experience.

Moreover, the integration of artificial intelligence and machine learning technologies in ATS solutions has enhanced the recruitment process by enabling better candidate matching, reducing time-to-hire, and improving overall efficiency.

On the other hand, challenges such as data privacy concerns, the complexity of integrating ATS systems with existing HR software, and the high initial investment required for implementing advanced ATS solutions act as hindrances to market growth.

Segments and Related Analysis

By Deployment Type:

- Cloud-based ATS solutions dominated the market in 2021 due to their scalability, cost-effectiveness, and ease of implementation. The demand for cloud-based ATS systems is expected to continue rising in the coming years.

- On-premise ATS solutions held a significant market share in 2021, particularly in industries with strict data security requirements. However, the shift towards cloud-based solutions is projected to impact the growth of on-premise ATS systems.

By Organization Size:

- Small and medium-sized enterprises (SMEs) are increasingly adopting ATS solutions to streamline their recruitment processes and compete for top talent. The flexibility and affordability of ATS systems cater to the needs of SMEs, driving market growth.

- Large enterprises have been early adopters of advanced ATS technologies to manage high volumes of job applications and improve recruitment outcomes. The customization and scalability of ATS solutions make them suitable for large organizations.

By End-User:

- The BFSI sector emerged as a key end-user of ATS solutions in 2021, owing to the need for stringent compliance requirements, high-volume hiring, and talent retention initiatives. The BFSI sector is expected to continue driving market growth.

- The IT and Telecom sector also significantly contributed to the ATS market in 2021, as technology companies strive to attract top tech talent and streamline their recruitment processes. The demand for innovative ATS solutions is on the rise in this sector.

By Region Analysis

North America:

- North America led the global applicant tracking systems market in 2021, driven by the presence of key market players, technological advancements in recruitment software, and the high adoption rate of ATS solutions among enterprises in the region.

- The United States accounted for the largest market share in North America, with a strong emphasis on digitization, automation, and recruitment technology innovation. The region is expected to maintain its dominance in the ATS market.

Europe:

- Europe followed North America in market share in 2021, attributed to the increasing focus on talent acquisition, rising demand for remote hiring solutions, and the adoption of AI-powered recruitment tools in European countries.

- The United Kingdom, Germany, and France emerged as key markets for ATS solutions in Europe, with a growing emphasis on enhancing recruitment processes, improving candidate experience, and increasing operational efficiency.

Asia Pacific:

- The Asia Pacific region witnessed significant growth in the applicant tracking systems market in 2021, fueled by the expanding IT industry, rising investment in recruitment technology, and the growing trend of digital HR transformation in countries like India and China.

- Emerging economies in APAC, such as Singapore, Malaysia, and Australia, are increasingly adopting ATS solutions to streamline their recruitment processes, attract top talent, and drive organizational growth.

Key Market Players and Competitive Landscape

The global applicant tracking systems market is highly competitive, with key players such as Oracle Corporation, IBM Corporation, SAP SE, iCIMS Inc., and Cornerstone OnDemand Inc. dominating the market. These companies focus on product innovation, strategic partnerships, and mergers and acquisitions to gain a competitive edge.

- Oracle Corporation: Oracle offers a comprehensive suite of recruitment software solutions, including Taleo Cloud Service, to streamline the hiring process, improve candidate experience, and drive organizational efficiency.

- IBM Corporation: IBM's Kenexa BrassRing ATS is a popular recruitment software that leverages AI and data analytics to enhance talent acquisition, automate workflows, and optimize recruitment strategies for global enterprises.

- SAP SE: SAP SuccessFactors is a leading cloud-based ATS platform that enables organizations to attract, engage, and retain top talent. SAP's recruitment solutions focus on scalability, integration, and user-friendly interfaces.

Recent Happenings in the Applicant Tracking Systems Market

- In April 2021, iCIMS Inc. announced the launch of iCIMS Video Studio, a video interviewing solution integrated into its ATS platform. The new feature aims to enhance the virtual recruitment experience and improve candidate engagement.

- In July 2021, Cornerstone OnDemand Inc. introduced an AI-powered ATS solution that automates sourcing, screening, and shortlisting of candidates. The innovative platform aims to streamline the recruitment process and improve hiring outcomes for businesses.

- In September 2021, SAP SE expanded its partnership with Microsoft to integrate SAP SuccessFactors with Microsoft Teams. The collaboration enables seamless communication, collaboration, and scheduling capabilities within the ATS platform, enhancing user experience.