July 23, 2024

Applicant Tracking System Market is Estimated to Witness High Growth Owing to Advancement in Recruitment Analytics and Artificial Intelligence

The applicant tracking system (ATS) is a software application that enables the electronic handling of recruitment processes. ATS manages the entire recruitment cycle starting from job posting, candidate application tracking, and performance tracking. It automates the historically paper-based processes for recruiting and hiring employees. ATS helps hiring managers source candidates from job boards and track large applicant pools with functionality like applicant screening, document management, assessment scores, interviews scheduling, and offer management.

The Global applicant tracking system market is estimated to be valued at US$ 2.67 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the applicant tracking system market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners), and iCIMS Inc. Key players are focusing on enhancing ATS with advanced features like predictive analytics, artificial intelligence, video interviews, and deeper integrations with other HR technology. Increasing adoption of cloud-based ATS and growing demand for applicant tracking and candidate relationship management from small and medium enterprises are the key opportunities in the market. Technological advancements like predictive hiring, recruitment software bots, personalized career sites, text recruitment, and mobile optimization are fueling the applicant tracking system market.

Market Drivers
Growing digitization of hiring processes and need for streamlining of recruitment activities are driving the demand for applicant tracking systems. Advancement in recruitment analytics and artificial intelligence is empowering hiring managers with data-driven insights to source the best talent. Integration of ATS with social media recruitment and tools like resume parsing is further optimizing the candidate experience and speed of hiring. Stringent regulations around diversity hiring and need for tracking applicant demographic data is also propelling the adoption of applicant tracking systems globally.

Market Overview of a Growing Technology Enabled Industry

“Technological Advancements Transforming Key Business Processes”

Technology is streamlining crucial operations for organizations across industries. Solutions that leverage innovations like analytics, artificial intelligence and automation are revolutionizing traditional methods for tasks like candidate sourcing and selection. What was once a highly manual process can now be handled electronically from start to finish.

A particular system has emerged that enables the digital management of recruitment lifecycles. This software application automates historically paper-driven activities involved in hiring employees, from job posting to performance tracking. It helps optimize processes like applicant screening, document handling, interview scheduling and offer management. The global market for this recruitment solution is estimated to reach $x billion by 2024, projected to rise at a compound annual growth rate of y% through 2030 time period.

Key Takeaways
Leading providers in the industry include several major players focused on enhancing the system with leading-edge functions such as predictive insights, AI, virtual interviews and deeper integration between HR technologies. Growing adoption of cloud-based deployment models and increased demand from small-medium companies present key opportunities. Technological advancement areas spurring market expansion are predictive hiring
Current Challenges in Applicant Tracking System Market
The Applicant Tracking System market is facing several challenges currently. With rising data privacy and security concerns, organisations are facing difficulties in securing applicant data as well as ensuring strict compliance with regulations like GDPR. Manual errors during data entry into ATS platforms is another issue plaguing hiring managers. Integration challenges with other HR tools also hamper accessibility of applicant data across different phases of recruitment. Compatibility issues arise when existing ATS fails to support new applicant channels like social media profiles. Also, a lack of analytics and reporting hampers effective candidate tracking and supplier evaluation for recruiters.

SWOT Analysis
Strength: ATS platforms offer improved efficiency, reduced cost and time to hire through automation of repetitive hiring tasks. Weakness: High upfront investment and maintenance costs of ATS solutions makes it unsuitable for small businesses. Opportunity: Integration of artificial intelligence capabilities like candidate matching, resume parsing etc. is expanding ATS functionalities. Threats: Data privacy breaches can damage employer brand image. Emergence of low-cost or free applicant tracking tools poses pricing pressure on established vendors.

Geographical Regions with Highest Market Value
North America currently holds the largest share of the global applicant tracking system market in terms of value. This is attributed to wide adoption across both public and private sectors for streamlining recruitment processes. Asia Pacific is estimated to be the fastest growing regional market owing to growing demand from countries like India, China and Australia to manage large applicant volumes through the incorporation of advanced ATS.

Fastest Growing Geographical Region
Asia Pacific is projected to witness the highest growth in the applicant tracking system market during the forecast period. This growth can be attributed to increasing digital transformation of HR functions and rising demand for cloud-based talent acquisition solutions from growing economies in the region. Countries like India and China are experiencing tremendous growth in recruitment activities which drives the implementation of advanced ATS to shortlist candidates efficiently.

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