April 18, 2024

Applicant Tracking System Market is Driven by Rising Need for Automation in Recruitment Process

An applicant tracking system is a software application that enables the electronic handling of a company’s recruitment needs. It is used by human resource professionals to post job openings on job boards and career sites or track applicants in a database. Key functions include sourcing candidates from online professional networks, evaluating resumes and CVs, setting up interview schedules, and performing background checks. It streamlines activities like managing incoming applicant information, screening candidates, scheduling interviews, and performing references checks. This makes recruitment and hiring more efficient for companies.

The global Applicant Tracking System market is estimated to be valued at US$ 2.67 Billion in 2023 and is expected to exhibit a CAGR of 6.47% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends gaining traction in the applicant tracking system market is the increasing adoption of cloud-based solutions. Cloud-based ATS software is hosted on a remote server and can be accessed from anywhere via an internet connection. It offers advantages like reduced upfront costs, easy global access, automatic updates, scalability, and 24/7 availability. As companies are shifting their IT infrastructure to the cloud, demand for cloud-based ATS is expected to rise notably during the forecast period. Another key trend is the integration of advanced technologies like artificial intelligence and predictive analytics. Vendors are integrating AI capabilities into their solutions to personalize candidate experiences, source profiles that align with company culture, streamline screening and interviews, and optimize hiring outcomes. Predictive analytics helps recruiters to identify suitable candidates proactively based on past hiring data. Such innovations are fueling adoption of advanced applicant tracking systems.

Porter’s Analysis
Threat of new entrants: Low. The ATS market requires high initial investments and established relationships with clients.

Bargaining power of buyers: High. Buyers can choose from various ATS vendors.

Bargaining power of suppliers: Low. A few large vendors dominate the market.

Threat of new substitutes: Medium. New technologies like AI-based hiring can replace some ATS functions.

Competitive rivalry: High. Vendors compete on functionality, customization, and pricing.

Key Takeaways
The global Applicant Tracking System market is expected to witness high growth. The global Applicant Tracking System market is estimated to be valued at US$ 2.67 Billion in 2023 and is expected to exhibit a CAGR of 6.47% over the forecast period 2023-2030.

North America dominates the market due to stringent regulations for hiring. Asia Pacific is expected to grow the fastest due to rising digital adoption.

Key players
Key players operating in the Applicant Tracking System market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc., iCIMS Inc. IBM offers Watson Talent to help identify top candidates. Oracle provides solutions like Taleo Business Edition for end-to-end recruitment. Jobvite focuses on easy to use yet powerful ATS. Bullhorn offers a unified platform for recruitment and other talent processes. iCIMS helps optimize hiring workflows.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it