April 17, 2024

The global applicant tracking system market is estimated to driven by digital transformation

 

Applicant tracking systems (ATS) provide a centralized hub for job openings, job applications management, and applicant activity tracking throughout the hiring process. It automates the recruitment process from job posting to interview coordination and makes it easier for organizations to receive, sort, and manage applicant submissions. ATS streamlines communication with candidates, enables companies to filter resumes based on pre-defined hiring criteria, and provides analytical tools to improve and measure recruiting effectiveness.

The global applicant tracking system market is estimated to be valued at US$ 2.67 billion in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Cloud-based ATS sees rapid adoption
Cloud deployment model for applicant tracking systems has witnessed strong demand owing to benefits such as cost-effectiveness, scalability, easy upgrades, and remote accessibility. Further, cloud-based ATS enables organizations to avoid risks associated with on-premise systems such as high initial installation cost, need for regular system maintenance and upgrades, and lack of flexibility. With rising digitalization post-pandemic, cloud adoption among hiring teams is expected to remain high during the forecast period, thereby propelling the applicant tracking system market growth.

Porter’s Analysis
Threat of new entrants: The ATS market has moderate threat as it requires huge investment in terms of technology and infrastructure. The existing major players hold a significant market share.
Bargaining power of buyers: There are a large number of players offering ATS software. This gives buyers bargaining power in terms of price and customization.
Bargaining power of suppliers: ATS providers have strong bargaining power over technology providers and third-party service providers due to their significant market share and demand.
Threat of new substitutes: There is low threat from substitutes as ATS has become mandatory for recruiting in large organizations.
Competitive rivalry: The market is fragmented with major global players and regional vendors competing based on features, compliance, price, and services offered.

Key Takeaways

The global Applicant Tracking System market is expected to witness high growth. The market is projected to reach a value of US$ 2.67 Bn by 2024, expanding at a CAGR of 6.4% during the forecast period.

Regional analysis: North America dominates the global ATS market with more than 35% share in 2023 owing to stringent government regulations for hiring. Asia Pacific is expected to grow at the fastest pace during the forecast period supported by growing digitalization and recruitment in countries like India and China.

Key players: Key players operating in the Applicant Tracking System market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners) ,iCIMS Inc. These players are focusing on partnerships, acquisitions and new product launches to maintain their market shares. For instance, in 2023 IBM acquired Talentrack to strengthen its ATS product offerings.

*Note:

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