Applicant Tracking System Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The applicant tracking system market size has grown strongly in recent years. It will grow from $2.79 billion in 2024 to $2.99 billion in 2025 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to automation of recruitment processes, compliance requirements, centralized candidate database, scalability.

The applicant tracking system market size is expected to see strong growth in the next few years. It will grow to $4.04 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to integration with HR software, mobile recruiting solutions, emphasis on diversity and inclusion, enhanced candidate experience, data security and compliance. Major trends in the forecast period include ai and machine learning, enhanced candidate experience, diversity and inclusion features, predictive analytics for recruitment, integration with HR software ecosystem.

The growing number of job applicants is anticipated to drive the expansion of the applicant tracking system market in the coming years. Job applicants are individuals who have submitted applications, usually in the form of resumes, to be considered for employment roles within a company or organization. Applicant tracking systems benefit job applicants by streamlining the application process, making it quicker and more convenient to apply, while also enhancing communication between applicants and recruiters. For example, in August 2024, according to the United States Job Openings report by Trading Economics, a US-based provider of historical data and forecasts, job openings increased by 329,000 to 8.04 million in August 2024, up from a revised 7.711 million in July and exceeding market expectations of 7.655 million. Notable increases were seen in construction (+138,000) and in state and local government, excluding education (+78,000). Thus, the growing number of job applicants is propelling the applicant tracking system market forward.

The advent of social media is expected to fuel the growth of the applicant tracking system market in the coming years. Social media encompasses online platforms and websites that enable users to create, share, and interact with content, information, and other users within a virtual social network. Social media plays a vital role in applicant tracking systems by enabling recruiters to source and assess candidates through online profiles, expanding the candidate pool and providing insights into their qualifications and suitability for job positions. As of September 2023, according to Made in CA, Canada has more than 33.1 million social media users, with Facebook being the most widely used platform, boasting over 26 million users, and Facebook Messenger being the preferred messenger app with over 22 million users. Thus, the emergence of social media is a driving force behind the growth of the applicant tracking system market.

Key companies in the applicant tracking system market are adopting innovative technologies, such as AI-powered application systems, to enhance user experiences by making the application process more efficient and user-friendly. AI-powered applicant tracking systems are designed to streamline recruitment and redefine talent acquisition through the integration of artificial intelligence (AI) technology. For example, in August 2023, Centric Group Inc., a US-based software development company, introduced Safaa ATS, an AI-powered applicant tracking system featuring unique elements such as AI-driven shortlisting, a fully branded job portal, cloud-based access, pre-packaged intranet, customizable workflows, and cutting-edge features to streamline recruitment and redefine talent acquisition. These features aim to simplify the recruitment process, improve efficiency, and enhance the overall candidate experience.

In February 2022, SmartRecruiters, a San Francisco-based hiring success company, acquired Attrax for an undisclosed amount. This acquisition enables customers to create data-driven, curated career sites that enhance the candidate experience and improve recruiting results. Attrax is a UK-based provider of career site software with an integrated applicant tracking system.

Major companies operating in the applicant tracking system market report are International Business Machines Corporation, Oracle Corporation, SAP SE, Automatic Data Processing Inc., Workday Inc., Ultimate Kronos Group, Paycor HCM Inc., Bullhorn Inc., Cornerstone OnDemand Inc., iCIMS Inc., PeopleFluent Inc., Ceipal Corporation, Workable Technology Limited, BambooHR, SmartRecruiters Inc., Jobvite Inc., Lever, Trakstar Hire, Bullhorn Inc., ADR Inc., Silkroad Technology Inc., Greenhouse Software Inc., ClearCompany Inc., Hireku Inc., Symphony Talent LLC, TalentNest, ATS OnDemand.

North America was the largest region in the applicant tracking system market in 2024. The regions covered in the applicant tracking system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the applicant tracking system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The applicant tracking system market consists of revenues earned by entities by providing services such as job posting and distribution, resume parsing and storage, candidate management, interview scheduling, analytics and reporting services, data security, and compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

An applicant tracking system (ATS) is a software application employed by companies and organizations to streamline and manage their recruitment and hiring processes. These systems are designed to automate and centralize various aspects of the hiring process, simplifying the task for HR professionals and hiring managers in finding, tracking, and evaluating job applicants.

The primary components of an applicant tracking system include software and services. Software encompasses a set of instructions, programs, and data that empower a computer or electronic device to execute specific tasks, functions, or operations. These systems are deployed through various modes such as on-premises and cloud across organizations ranging from small and medium-sized enterprises (SMEs) to large enterprises. The end-users span various industries, including banking, financial services, and insurance (BFSI), government, manufacturing, telecom, information technology (IT), consumer goods and retail, healthcare and life sciences, energy and utilities, transportation and logistics, and others.

The application tracking system market research report is one of a series of new reports that provides application tracking system market statistics, including application tracking system industry global market size, regional shares, competitors with an application tracking system market share, detailed application tracking system market segments, market trends and opportunities, and any further data you may need to thrive in the application tracking system industry. This application tracking system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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