Global Applicant Tracking System Market Overview
Applicant tracking system refers to the software application that manages all the recruitment and hiring processes. The main aim of the software is to speed up the hiring process. It also posts job ads on multiple reliable portals for the job seekers to increase the candidate pool. It helps in sorting and ranking the candidates, scheduling interviews, and sending automated emails to the liable candidates. ATS systems help HR management staff quickly and efficiently monitor compliance, generate reports, and guarantee that all of the necessary documents are in the right place should an audit ever occur. Expanding businesses, digitalization, and automation of the processes influence applicant tracking systems use.
There is a rising demand for cost-efficient hiring tools. As companies increase the workforce and hiring teams feel the burden of extra pressure.
According to Value Market Research, the global applicant tracking system market size was valued at about USD 2.5 billion in 2020 and is estimated to grow at a CAGR of around 9 % during the forecast period 2021 to 2027.
The hiring process is fragmented. For instance, email inbox for tracking communication with candidates, spreadsheet for tracking the candidates’ application progress, and receive interview feedback through internal communication tools. This makes collaboration complex and painful and lacks context. Hiring mangers spend time collaborating and filling in context gaps instead of focusing on more strategic tasks. Applicant tracking systems serves to accomplish all these issues. The most basic applicant tracking systems offer resume database and candidate search, interview management, job application management, workflow management, HR and legislation compliance management, job board posting, applicant profiles, and filtering, and pre-screening. However, complexity in handling processes with privacy concerns regarding databases may hinder the market growth. Also, reliability issues such as the rejection of suitable candidates may negatively impact the market penetration of the applicant tracking system.
The global applicant tracking system market is highly fragmented. The market consists of many small and big players.
ADP, Cornerstone, Greenhouse Software, IBM, Icims, Jobvite, Oracle, Paycor, Peoplefluent, SAP, and Silkroad Technology are key players associated with the market.
In this research report, the applicant tracking system market is segmented by component, deployment, organization size, vertical, and region.
Analysis, By Component
By component, the global applicant tracking system market is fragmented into software and service. The software segment acquired a major share in the worldwide market. The rapid increase in the automation of business processes across end-use industries and significant rise in deployment of software and services across verticals for enabling better services, enhancing profitability, reducing inventory cost, and enabling organizations to enhance their market position is estimated to encourage the software and service segments market growth over the forecast period.
Analysis, By Deployment
By deployment, the global applicant tracking system market is divided into on-premise and cloud. The cloud segment occupied the maximum share in the market and is anticipated to thrive during the forecast period. The cloud segment is gaining robust growth due to its features over on-premise, such as access anytime, integration with various sources, cross-communication, speedier screening and tracking, cost-effectiveness, data encryption, speedy implementation, and improved user experience. Corporations and other agencies are observing cloud-deployed ATS attractive, as they now provide improved security at an affordable price.
Analysis, By Organization
By organization, the global applicant tracking system market is segmented into small and middle-sized enterprises and large enterprises. Large enterprises segment grabbed major share in the market. Large enterprises often adopt applicant tracking system software due to the bulk-hiring, more extensive workforce, and thus more complex process. ATS serves to ease and streamline the hectic hiring process. For large enterprises, ATS act as a one-stop solution human resource manager.
Analysis, By Vertical
Based on vertical, the global applicant tracking system market is segmented into banking, financial service & insurance, it & telecommunications, government & public sector, retail & consumer goods, manufacturing, healthcare & life sciences, and others. In 2020, the IT and telecommunications vertical is estimated to hold the highest market size. The IT and telecommunications industry employs a large number of individuals and has a very dynamic recruitment process. In recent years, the vertical has witnessed a steep rise in hiring. There is intense competition among the recruiters for sourcing, attracting, and acquiring talent.
Analysis, By Region
Based on region, the market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. In 2020, North America dominated the market. North America is foremost to adopt new technologies, has high adaptability of new technology, the base of many IT companies and other end-users companies, and providers. Regional companies are investing in R&D to launch new, improved features. The Asia Pacific is gaining traction due to more automation, digitalization, and business expansions. The Asia Pacific is emerging as a most lucrative market. Key companies are focussing on Asian countries for revenue generation. Moreover, the region has strong economies and is adopting ATS solutions quickly to comply with regulatory obligations and sustain in the highly competitive recruitment market.
Market Segmentation covered in the Report:
- Small and Middle Sized Enterprise
- Large Enterprise
- Financial Service & Insurance
- IT & Telecommunications
- Government & Public Sector
- Retail & Consumer Goods
- Healthcare & Life Sciences
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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