Applicant Tracking System Market

Applicant Tracking System Market Outlook (2022 to 2032)

[250 Pages Report] Newly-released Applicant Tracking System Market analysis report by Future Market Insights shows that global sales of the Applicant Tracking System Market in 2022 held at USD 2.1 Billion. With 5.3%, the projected market growth from 2022 to 2032 is expected to be slightly higher than the historical growth. Software is expected to be the highest revenue-generating segment, projected to grow at a CAGR of over 5.2% from 2022 to 2032.

Attributes	Details
Applicant Tracking System Market CAGR (2022 to 2032)	5.3%
Applicant Tracking System Market Size (2022)	USD 2.1 Billion
Applicant Tracking System Market Size (2032)	USD 3.8 Billion
USA Market CAGR (2022 to 2032)	4.2%
Key Companies Covered	International Business Machines Corporation; Icims; Oracle; PeopleFluent; Cornerstone; Greenhouse Software; Trakstar Hire; PeopleFluent; SmartRecruiters; Jobvite; ClearCompany; SmartRecruiters

Revenue of Applicant Tracking System Market from 2017 to 2021 Compared to Demand Outlook for 2022 to 2032

As per the Global Applicant Tracking System Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2017 to 2021, the market value of the Applicant Tracking System Market increased at around 6.1% CAGR. Many candidates encounter less-than-ideal circumstances during their job searches. According to the Talent Board, North America's candidate dissatisfaction climbed by 40% in 2016. Businesses may offer a better candidate experience and avoid candidate dissatisfaction with an applicant monitoring system.

It offers a more straightforward application procedure, a mechanism for job seekers to track the status of their applications, and improved communication throughout the hiring process. One way to ensure fast communication is to use applicant tracking software. Dashboards and notifications assist hiring managers and recruiters in keeping communication at the forefront of their minds.

Positive candidate experiences increased by 52% when HR teams defined the post-interview activities and followed up with applicants in accordance with the predetermined timeline, according to the 2020 North American Candidate Experience Research Report. As a result, applicant tracking systems software ensures that relationships between recruiters and prospects are positive.

There are more job opportunities in the IT and telecommunication sector as a result of the ongoing need for skilled personnel and the rapid evolution of technologies. In order to fill the growing demand for jobs, IT and communications solution providers are employing ATS software to reduce the talent gap.

Which Factors Are Propelling Applicant Tracking System Demand?

To eliminate prejudice and automate the review and publication of job applications on several job boards, applicant tracking systems combine data mining and natural language processing. Due to the fusion of numerous technologies, the market trends for applicant tracking systems have made software generally accessible. Two examples of these trends are the use of cloud computing and artificial intelligence.

For instance, Modern Hire., a supplier of video interviewing, pre-hire exams, and applicant tracking software, unveiled an AI-driven Automated Interview Creator in March 2022. HR and recruiters will benefit from the technology as they try to increase the accuracy and relevance of their work. Utilizing the technology would also help recruiters conduct engaging application interviews and moral hiring decisions.

To ensure secure data and facilitate system transfer, large organizations are choosing to purchase from, communicate, and engage with providers of applicant tracking systems. For instance, IBM sold its talent acquisition suite to Infinite Computer Solutions Limited in October 2021. With the help of this program, new hires are hired and onboarded.

Infinite Computer Solutions Limited will gain access to a SaaS-based platform to attract top talent prospects and streamline the hiring process as a result of this acquisition. In order to expand the capabilities of the company, HireLogic, a supplier of AI-powered hiring software platforms, raised USD 4 Million in early funding in May 2022. Large organizations would profit from the company's candidate tracking system and video conferencing platforms since they would make organized interviews, data-driven hiring decisions, and resume ranking possible.

Large businesses are using applicant tracking systems and expanding their operations through job opportunities and candidates, recognizing certain competencies and talents that correspond with their goals and values. An applicant tracking system might make it easier to gather, store, and manage applications for these organizations.

These businesses need a support system to help them with the hiring process. For instance, a media holding company in the USA named G/O Media Inc. reported in April 2022 that applicant tracking systems are used by 75% of recruiters for the hiring process and by 99% of large businesses to set themselves apart from the competition. This enables the resume to pass through the applicant tracking systems and land in the hands of a human recruiter.

What factors are restraining the Growth of the Applicant Tracking System Market?

When designed and implemented on new or existing infrastructure, the applicant tracking systems paradigm presents a variety of design and implementation issues. The model forces organizations' IT departments to review their network security strategies in order to transition from a network perimeter-based strategy to a user and application-based security model. It could require significant time and effort to redesign and develop web and mobile applications. To transition to the new IT security model, a thorough network analysis of services, network gear, and traffic is necessary as the majority of networks were not developed with cybersecurity in mind. Before using the applicant tracking systems software to re-evaluate the hiring process, it is crucial to have a precise and thorough awareness of every user, application, device, and resource.

As a result of technological advancements affecting HR, a shifting set of skills is required to assure relevance with job advertisements. HR managers struggle to fully adopt new applicant tracking systems as they lack the necessary IT skills and software knowledge. The HR team needs the right training in order to use the applicant tracking systems effectively. As a result, it is projected that the lack of experience and limited technical skills will be a barrier to successfully adopting applicant tracking systems software across enterprises.

Region-wise Insights

Which Region is projected to Offer the Largest Applicant Tracking System Market Opportunity?

During the projection period, North America is projected to be the leading market applicant tracking system. To improve business solutions and give priority to resource planning in the cloud, Microsoft Corporation and Workday Inc. forged a strategic collaboration in May 2020. This will allow clients to use it to effectively complete their everyday responsibilities.

Customers of Workday will be able to use Workday Adaptive Planning on the Azure cloud as a result of this agreement. In order to hasten the decision-making process, Microsoft will also employ Workday Adaptive Planning for its financial teams' planning and forecasting. The region is expected to experience an increase in technological developments, strategic collaborations, and knowledge sharing.

Country-wise Analysis

Which Country Lies at the Centerstage for Applicant Tracking System Market Revenue?

The USA is expected to account for the highest market of USD 1.2 Billion by the end of 2032. Also, the market in the country is projected to account for an absolute dollar growth of USD 400 Million. In order to improve operations and obtain a competitive advantage, USA firms are making greater investments in cutting-edge technology. For instance, in March 2022, the USA-based provider of recruiting software iCIMS acquired Candidate.ID provides a lead-scoring application monitoring system to help clients better evaluate and comprehend their talent. This acquisition would also allow iCIMS to expand its customer base and operations in the USA with the aid of applicant tracking systems solutions.

Category-wise Insights

Why Software is projected to Witness the Fastest Growth among Applicant Tracking System End Use?

Market revenue through applicant tracking software is forecasted to grow at a CAGR of over 5.2% from 2022 to 32. The increase is due to the applicant tracking systems software's ability to be customized and adjusted to meet end-user requirements. The application collects and maintains resumes in its database for easy access by recruiters. Despite being created for businesses, applicant tracking systems allow organizations to modify the software to suit their end-use requirements. For instance, the American hiring company UKG Inc. and the cloud-based recruiting software platform iCIMS announced their partnership in April 2021.

The collaboration will enable iCIMS to improve accuracy and data quality, save employee data, hasten decision-making, and simplify internal mobility. The company's applicant tracking systems platform allows hiring managers and recruiters to transmit new hire insights, which instantly synchronizes the employee data to enhance processes for transfers, new engagements, and rehires.

Competitive Analysis

Players in the market are constantly developing improved analytical solutions as well as extending their product offerings. The companies in the Applicant Tracking System market are focused on their alliances, technology collaborations, and product launch strategies.

Some of the recent developments of key Applicant Tracking System providers are as follows:

• In January 2020, for its HR product line, Jobvite introduced a data science strategy. By ensuring that corporate recruiters have access to the most qualified applicants, this program aims to save time for both candidates and recruiters. Several algorithms and data sources, including corporate and recruiter hiring preferences, are incorporated into this data-driven strategy.
• In December 2020, In order to enhance the company's Talent Cloud Platform with employee-generated video storytelling, iCIMS recently announced the acquisition of Altru Labs, a mobile video platform.

Similarly, recent developments related to companies in Applicant Tracking System Market have been tracked by the team at Future Market Insights, which are available in the full report.

Applicant Tracking System Market Segmentation

By Component:

• Software
• Services
  • Training, Support & Maintenance
  • Integration & Implementation
  • Consulting

By Deployment:

• On-premise
• Cloud

By Organization Size:

• Small & Medium Enterprises
• Large Enterprises

By End Use:

• IT & Telecommunication
• BFSI
• Healthcare & Life Sciences
• Consumer Goods & Retail
• Manufacturing
• Others

By Region:

• North America
• Latin America
• Europe
• Asia-Pacific (APAC)
• Middle East and Africa (MEA)

Frequently Asked Questions

How much is the current worth of the Applicant Tracking System Market?

The global Applicant Tracking System Market is worth more than USD 2.1 Billion at present.

What is the sales forecast for Applicant Tracking System Market?

The value of the Applicant Tracking System Market is projected to increase at a CAGR of around 5.3% from 2022 to 2032.

What was the last 5 year’s market CAGR?

The value of the Applicant Tracking System Market increased at a CAGR of around 6.1% from 2017 to 2021.

What are the key Applicant Tracking System Market Trends?

The demand for Software has increased tremendously. The global demand for Applicant Tracking Systems is being fueled by a considerable increase in the use of social media platforms.

At what percentage is sales of the Applicant Tracking System Market going to register growth in USA?

The growth of the Applicant Tracking System market in the US is projected to expand at a CAGR of around 4.2% from 2022 to 2032.

At what percentage is sales of the Applicant Tracking System Market Expected to register growth in China?

The growth of the market for Applicant Tracking System in China is projected to expand at a CAGR of around 6.2% from 2022 to 2032.

What do statistics for South Korea and Japan reveal?

While the market in South Korea is expected to grow at nearly 5.7%, the market in Japan is projected to register a CAGR of nearly 4.7% from 2022 to 2032.