The Applicant Tracking Systems (ATS) Market: Comprehensive Overview and Growth Prospects

The applicant tracking systems (ATS) market is poised for robust growth in the coming years driven by the accelerating demand for talent acquisition software. ATS solutions automate and simplify therecruitment process right from posting job vacancies to onboarding new hires. With advanced functionality and integration capabilities, ATS is emerging as a must-have for HR teams globally. The applicant tracking systems market industry is projected to grow from USD 2.5 billion in 2022 to USD 3.8 billion by 2030

Increased adoption of cloud-based software solutions coupled with the growing need to streamline cumbersome recruiting processes will boost the demand for ATS in the forecast period.

Key ATS Market Trends and Driving Factors

• Transition to cloud-based deployment from on-premise systems is a major growth driver for ATS solutions. The scalability, flexibility, and cost-savings offered by SaaS models make cloud-hosted ATS attractive for HR teams.
• Advancements in AI and automation capabilities of ATS solutions allow faster matching of candidate profiles with job requirements, automated resume screening and more refined analytics. This enhances the value proposition of ATS for recruiters.
• Growing demand from large enterprises as well as increasing adoption among small- and medium-sized businesses is contributing to ATS market growth. HR software budgets are increasing across organizations.
• Need for reducing manual processes and improving recruiting KPIs such as time-to-hire, cost-per-hire, and candidate experience is propelling the adoption of ATS solutions.
• Rising employment and increasing war for talent in highly competitive labor markets are compelling employers to invest in recruiting optimization software like ATS.

Key Segments and Sub-Segments of the ATS Market

By Component:

• Software
• Services

By Deployment Type:

• On-premise
• Cloud-based

By Organization Size:

• SMEs
• Large Enterprises

By Industry Vertical:

• BFSI
• IT and Telecom
• Government and Public Sector
• Retail and Consumer Goods
• Manufacturing
• Healthcare and Life Sciences
• Others

Notable ATS Vendors and Competitive Landscape

The ATS vendor ecosystem consists of players such as Oracle, SAP, IBM, Zoho, BambooHR, iCIMS, Workable, Bullhorn, Microdec, ClearCompany, ADP, Jobvite, Greenhouse Software, SmartRecruiters, JobDiva, JazzHR, Lever, CATS Software, Rchilli, Workday,PeopleFluent, etc. The market is witnessing rising adoption of AI, machine learning, and blockchain technologies by leading ATS platforms to enhance automation and deliver superior user experience.

With recurring revenue business models, SaaS delivery, attractive pricing tiers, and increased investments in UX design, vendors are innovating on various fronts to gain market share. Partnerships, mergers, and acquisitions also mark the competitive dynamics of the ATS software market.

Browse In-depth Market Research Report (100 Pages, Charts, Tables, Figures) on Applicant Tracking Systems (ATS) Market

Regional Insights into the Global ATS Market

North America accounted for the dominant share of over 40% of the global ATS market revenue in 2019. Presence of leading vendors coupled with high technology awareness and HR software budgets among enterprises in the region is benefiting the ATS market.

Europe is anticipated to see substantial market growth over the forecast period owing to flourishing economies, booming start-up ecosystem, and increasing SME digitization in countries like UK, Germany, France, etc.

The Asia Pacific represents a promising regional market for ATS solutions. Expanding workforce, rising recruitment process outsourcing, and increasing technology adoption are key drivers.

Conclusion

The growing imperative to optimize recruitment has made applicant tracking systems indispensable for enterprises as well as recruiters globally. Backed by the potent drivers of cloud adoption, automation, and increased HR tech spending, the ATS market is poised for robust growth over the coming years. ATS solutions are maturing both in terms of features and delivery models to better serve dynamic recruitment needs and maximize ROI.