Global Applicant Tracking System Market Size, Share & Industry Trends Analysis Report By Enterprise Size, By Component, By Deployment Model, By Vertical, By Regional Outlook and Forecast, 2021 - 2027
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Market Report Description
The Global Applicant Tracking System Market size is expected to reach $3.3 billion by 2027, rising at a market growth of 7.1% CAGR during the forecast period.
An applicant tracking system (ATS) is an application that collects and stores resumes in a database to handle an organization's recruitment process. After scanning and indexing resumes, ATS stores them in a database and provides recruiters with an online view of job searchers. The majority of companies utilize some type of applicant tracking system application to process job applications and manage a huge volume of resume data. The data is either retrieved from internal applications using ATSs or from social networking websites like LinkedIn, Facebook, and Twitter.
While applicant tracking systems may be used by organizations of all sizes, they're especially effective for those who hire personnel on a regular basis or receive a big number of applications for each post. If a company screens more than 1000 resumes each year, an applicant tracking system is likely to provide a large return on investment. They'll also gain from an ATS tracking system if their employment process is long or complicated, or if they have issues with recruiting and administration. Time-to-fill can be greatly reduced with applicant tracking tools. This means that firms who struggle to manage the burden associated with huge pools of candidates will benefit greatly from the shortened procedure. The applicant tracking systems market is driven by a rise in the need for cost savings, an increase in the need for strategic and enhanced hiring decisions, and the introduction of social media.
Due to the existence of global and growing companies in the market, the applicant tracking system market is progressing. The substantial adoption of cloud services and security infrastructure are the key factors that drive the adoption of ATS solutions among enterprises and SMEs across various verticals, including manufacturing, consumer goods, and retail, transportation and logistics, government, BFSI, telecom and IT, energy and utilities, healthcare and life sciences, and others. Vendors in the market should expect additional prospects in developing nations.
The growing advancements in cloud-based platforms, the internet of things (IoT), server-less architecture, and big data are all helping to propel the ATS market forward. Other factors, such as the need for a more strategic and effective hiring procedure, as well as the growing demand for cost-cutting, are expected to enhance the industry in the future years. Additionally, decreasing latency and lower ATS costs are expected to fuel the industry.
COVID-19 Impact Analysis
The COVID-19 outbreak and the ensuing pandemic have benefited the market for applicant tracking systems. The present economic recession, which has been exacerbated by COVID-19, highlights the need for alternative business systems. Cloud computing and migration to cloud applicant tracking system solutions have become critical for enterprises. Companies are increasingly turning to technology-assisted recruitment solutions that can be used remotely and ensure hiring as well as company continuity in the event of a disruption. With the increased use of remote working modes and the ongoing COVID-19 pandemic, ATS has acquired market traction to cater to virtual recruitment.
Market driving Factors:
Enhanced Candidate Experience Through a Streamlined Process
Many individuals have had a dreadful job-hunting experience. With an applicant monitoring system, businesses can provide a better candidate experience and reduce candidate discontent. It provides a faster application process, a mechanism for candidates to track the status of their applications, and increased communication during the recruiting process. Applicant tracking software makes it simple to keep track of applicants and communicate with them on a regular basis. Recruiters and hiring managers can use dashboards and notifications to keep communication top of mind. A systematic follow-up and adherence to the agreed timetable from the HR teams lead to a positive experience for job applicants. Thus, ATS software ensures that recruiters and candidates have a healthy and pleasant relationship.
Rising Implementation of Cloud Based Recruitment Solutions Among Enterprises
Due to the powerful and flexible infrastructure, the cloud computing architecture is frequently used. Many businesses are turning to cloud solutions to ease data storage because they allow remote servers accessible over the internet and access to almost unlimited computing capacity. The use of a cloud-based approach allows businesses to manage all of their apps because it gives extremely difficult analytics that runs in the background. SMEs continuously search for ways to update their applications and infrastructures by utilizing cloud-based platforms like Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) (IaaS). Cloud-based security solutions reduce the need for on-premises security devices and instead rely on cloud services to protect applications, data, users, and devices.
Marketing Restraining Factor:
Implementing ATS Solutions in Existing Infrastructure is Difficult
The design and execution hurdles of deploying the ATS model on a new or existing infrastructure are numerous. The paradigm encourages enterprise IT teams to rethink network security, moving away from a network perimeter-based strategy and toward a user-based and application-based approach. Redesigning and redeploying online and mobile applications can be time-consuming and labor-intensive. Most networks aren't built with cybersecurity in mind, thus upgrading to the new IT security paradigm necessitates a thorough examination of network infrastructure, services, and traffic. Using ATS software to re-model the recruiting and recruitment process necessitates a precise and thorough understanding of each user, device, application, and resource.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). The SMEs segment observed a substantial revenue share in the applicant tracking system market in 2020. Since these businesses do not have a significant budget, it is vital to reduce expenses as much as feasible. The recruiter saves time and money by not having to go through resumes, giving him or her more time to do other things.
Based on Component, the market is segmented into Software and Services. The services segment witnessed a substantial revenue share of the applicant tracking system market in 2020. Services such as consulting, integration and implementation, training and education, and maintenance and support are required at various stages, from pre-sale requirement evaluation to post-sale product deployment and execution, allowing the client to achieve the highest possible return on investment. Services play an important role in bringing the solution on-board, providing training, and managing and sustaining the software. Consultants, solution experts, and dedicated project management teams who specialize in the design and delivery of key decision support software, tools, and services are among the companies that provide these services.
Deployment Model Outlook
Based on Deployment Model, the market is segmented into On-premise and Cloud. The on-premise segment procured the largest revenue share of the applicant tracking system market in 2020. The program is deployed in servers housed on their premises in On-premise ATS, and companies are responsible for licensing, updates, and other costs. On-premise ATS can help firms with data privacy concerns because they can store and use all of the system's features in their workplace.
Based on Vertical, the market is segmented into BFSI, Telecom & IT, Retail & Consumer Goods, Manufacturing, Healthcare, Government & Defense, Transportation & Logistics, Energy & Utility, and Others. The BFSI segment recorded the largest revenue share of the applicant tracking system market in 2020. Employers in the banking and financial industries are increasingly using applicant tracking systems to process a large number of applications promptly. These programs collect text from a candidate's CV and scan it for abilities that match the candidate to relevant jobs or job descriptions. This means that candidates should avoid using sophisticated CV templates, symbols, advanced formatting such as headings, lines, borders, or footers, and, of course, misspellings, as these may cause problems with the text extraction process (parsing).
|Market size value in 2020||USD 2.1 Billion|
|Market size forecast in 2027||USD 3.3 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 7.1% from 2021 to 2027|
|Number of Pages||282|
|Number of Tables||473|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Enterprise Size, Deployment Model, Vertical, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America acquired the largest revenue share of the applicant tracking system market in 2020. Since industrialized economies such as the United States (US) and Canada are involved, North America is likely to have the largest share. As practically all of the big firms have their headquarters in the area, it is the most developed region on the ATS market. With the growing use of digital business tactics in North America, companies are moving toward new and upgraded technology. In addition, to obtain a competitive edge and improve operations, businesses have invested in new technologies. All of these variables are driving forces in this region's market. Another factor expected to boost expansion in the target market in North America is the rapid acceptance of cloud-based services.
Free Valuable Insights: Global Applicant Tracking System Market size to reach USD 3.3 Billion by 2027
KBV Cardinal Matrix - Applicant Tracking System Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, Oracle Corporation and SAP SE are the forerunners in the Applicant Tracking System Market. Companies such as ADP, Inc., iCIMS, Inc. and Bullhorn, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Oracle Corporation, SAP SE, Infor, Inc., Workday, Inc., ADP, Inc., Zoho Corporation Pvt. ltd., Bullhorn, Inc., Cornerstone OnDemand, Inc., and iCIMS, Inc.
Recent Strategies Deployed in Applicant Tracking System Market
» Partnerships, Collaborations and Agreements:
- Mar-2022: Zoho Recruit came into a partnership with EduThrill, a leading provider of AI-driven scalable and customizable gamified assessment and learning solutions. Through this partnership, the companies would permit selectors to send assessment tests to participants receive status reports at any stage from the individual system. Additionally, automation and digitization appraisal procedures make selectors more systematic.
- Feb-2022: iCIMS formed a partnership with Infor, the industry cloud company. Together, the companies aimed to provide next-gen talent abilities across North America to key services industries, such as healthcare organizations. Additionally, the companies would integrate the end-to-end talent lifecycle, and assist enterprises to engage, attract, advance, and hire top talent at the scale and pace according to enterprise demand.
- Dec-2021: IBM signed a three-year agreement with AIB, The Irish bank. Through this agreement, IBM would provide AIB’s 2023 strategy providing a clear walkway to a hybrid cloud technology ecosystem. Additionally, IBM’s data analytics and process automation tools would integrate AIB’s technology road map and enterprise necessity and improve system opportunity abilities, supporting the bank's functioning flexibility.
- Oct-2021: Bullhorn came into a partnership with PIXID Group, the largest European-owned recruitment technology provider. This partnership would allow recruitment agencies to tackle the power of the attached applicant tracking as well as supplier management systems to provide greater value to participants as well as buyers. Additionally, the integrated expertise and growing service offering from the partnership would strengthen the position of the enterprise in the global recruitment markets.
- Oct-2020: iCIMS partnered with Advanced, one of the UK’s largest Human Capital Management providers. Under this partnership, the companies deliver streamlined experience and access to dominant TA and HR solutions to remains scale, adapt, competitive, and continue to flourish.
» Acquisitions and Mergers:
- Jan-2022: Bullhorn took over Able, a candidate engagement and onboarding solutions provider. Under this acquisition, the company aimed to help staffing enterprises to meet complex onboarding demands, minimize drop-out participants as well as obtain participants on assignment faster, all while providing an incredible joining experience for the participant.
- May-2020: iCIMS took over Opening.io, the Ireland-based data science company. Through this acquisition, Opening.io, and iCIMS’ patent-pending abilities, iCIMS Talent Logic would bring consumers completely new AI that helps to rebuild the future. Additionally, using iCIMS Talent Logic HR enterprise, hiring managers, and recruiters would allow engaging, discovering, and hiring candidates quickly and more productively.
» Product Launches and Product Expansions:
- Dec-2020: SAP SE introduced SAP SuccessFactors Time Tracking solution. The solution delivers enterprise with ease, approve and monitor the time, and innovative tools to record the workforce.
Scope of the Study
Market Segments Covered in the Report:
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises (SMEs)
By Deployment Model
- Telecom & IT
- Retail & Consumer Goods
- Government & Defense
- Transportation & Logistics
- Energy & Utility
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- IBM Corporation
- Oracle Corporation
- SAP SE
- Infor, Inc.
- Workday, Inc.
- ADP, Inc.
- Zoho Corporation Pvt. ltd.
- Bullhorn, Inc.
- Cornerstone OnDemand, Inc.
- iCIMS, Inc
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What would be the value of the global applicant tracking system market by 2027?
The global applicant tracking system market size is expected to reach $3.3 billion by 2027.
What are the key driving factors and challenges in the applicant tracking system market?
Rise in the number of adventurous and sport events are driving the market in coming years, however, rising implementation of cloud based recruitment solutions limited the growth of the market.
Who are the top market players in the applicant tracking system industry?
IBM Corporation, Oracle Corporation, SAP SE, Infor, Inc., Workday, Inc., ADP, Inc., Zoho Corporation Pvt. ltd., Bullhorn, Inc., Cornerstone OnDemand, Inc., and iCIMS, Inc.
Which segment shows a high revenue share of the applicant tracking system market in 2020?
The Large Enterprises segment acquired maximum revenue share in the Global Applicant Tracking System Market by Enterprise Size in 2020; thereby, achieving a market value of $2.1 billion by 2027.
Which region dominated the applicant tracking system market in 2020?
The North America market dominated the Global Applicant Tracking System Market by Region in 2020, and would continue to be a dominant market till 2027.