December 5, 2024
Ict

Applicant Tracking Systems Market is driven by Transforming Recruitment through Analytics-Driven Insights

The applicant tracking system (ATS) market allows recruiters and hiring managers to streamline the recruitment process through a centralized software platform. An ATS manages all aspects of the recruitment funnel, from sourcing candidates and collecting resumes to scheduling interviews and onboarding new hires. These systems provide advanced tools like candidate relationship management, skills-based matching, and analytics and reporting capabilities to help recruiters source the best talent efficiently.

The global applicant tracking system market size 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 from 2023 to 2030.

Applicant tracking systems have emerged as a necessity for organizations of all sizes to manage an ever-increasing volume of applications and candidates for open roles. ATS software automates time-consuming manual tasks, improves the candidate experience, and provides data-driven recommendations to help hiring teams identify top talent.

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. These solution providers offer full-featured ATS platforms as well as niche offerings tailored for specific recruitment needs.

The growing demand for applicant tracking systems stems from the war for talent in a tight labor market. As the number of applications per job posting rises, ATS tools help optimize outreach and selection by leveraging analytics on past hiring data. Recruiters can focus on engaging qualified candidates most likely to accept an offer.

Regionally, North America dominates the applicant tracking system industry due to advanced adoption among enterprises. However, Asia Pacific is emerging as a lucrative market as organizations increase investments in digital transformation and HR technologies. Cloud-based global ATS vendors also facilitate expansion into new international talent pools.

Market Key Trends

One of the key trends gaining traction in the applicant tracking system market is artificial intelligence and machine learning capabilities. AI-powered resume parsing, match scoring, skills indexing, and other automated functions allow ATS platforms to handle much higher recruitment volume without overburdening human staff. AI also enhances the candidate experience through personalized communication and a streamlined application journey tailored to each role. As AI becomes more sophisticated, ATS vendors are investing heavily in technical talent and data science to further augment traditional recruiting processes with intelligence.
Porter’s Analysis
Threat of new entrants: Low upfront investment requirements drive the entry of new players in the applicant tracking system market. However, established vendors dominate through differentiating product offerings and strong customer base.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated product offerings by various vendors in the applicant tracking system market.
Bargaining power of suppliers: A few large vendors cater to the global demand for applicant tracking systems. Therefore, suppliers enjoy moderate bargaining power.
Threat of new substitutes: Cloud-based talent acquisition suites and social job posting platforms serve as viable substitutes and pose moderate threat to applicant tracking systems.
Competitive rivalry: Vendors compete based on product functionalities, pricing, and services to gain greater market share in the applicant tracking system market.

Around 30% of the global applicant tracking system market value is concentrated in North America. Rising need to streamline recruitment operations across various industries including IT, healthcare, manufacturing, and retail drives the demand for applicant tracking systems in the region.

Asia Pacific is expected to witness the fastest growth in the applicant tracking system market during the forecast period. Growing number of SMEs and adoption of cloud-based solutions across organizations for centralized talent acquisition are major factors fueling the adoption of applicant tracking systems in Asia Pacific countries including China, India, and Japan.

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

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →