Applicant Tracking System [ATS] Market Size to Surpass $ 6.2 Billion, Globally, by 2031 at 10.0% CAGR - Report by The Insight Partners
NEW YORK, April 23, 2025 /PRNewswire/ - According to a comprehensive new report from The Insight Partners, the global Applicant Tracking System (ATS) market is observing healthy growth owing to the rising recruitment volume across the globe.
The report runs an in-depth analysis of market trends, key players, and future opportunities. Several key factors drive the Applicant Tracking System (ATS) market. As organizations scale operations and expand geographically, the need to manage high volumes of job applications efficiently is pushing adoption of ATS platforms.
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Overview of Report Findings
- Market Growth: The Applicant Tracking System (ATS) market is expected to reach US$ 6.2 billion by 2031 from US$ 3.2 billion in 2024; it is expected to record a CAGR of 10.0% during the forecast period. As organizations scale operations and expand into new markets, the volume of job applications they receive increases significantly. This surge in recruitment activity, whether driven by organizational growth, geographic expansion, or the launch of new business units, necessitates more efficient methods of managing the hiring process. Applicant Tracking Systems (ATS) are becoming indispensable tools for managing this increased recruitment volume.
- Rising Recruitment Volume: When companies hire at scale, manually reviewing resumes, sorting applications, and coordinating interviews becomes time-consuming and error-prone. Without an automated system, the hiring team might struggle to keep up with the sheer number of applications, leading to delays, human error, and ultimately, poor candidate experience. An ATS addresses these challenges by automating repetitive tasks, such as sorting resumes based on keywords or qualifications, scheduling interviews, and sending standardized communications to applicants. In addition to improving efficiency, ATS platforms help recruiters and hiring managers stay organized amidst the high volume. These systems centralize candidate data, providing easy access to resumes, interview notes, and application statuses all in one place. This allows recruiters to streamline communication and collaboration, ensuring a smoother hiring process and faster decision-making.
- Rising Remote and Hybrid Work Models: The rise of remote and hybrid work models, accelerated by the COVID-19 pandemic and continued demand for flexible work options, has significantly transformed the recruitment landscape. With companies increasingly offering remote or hybrid positions, the traditional, in-person hiring processes have become less viable, making digital hiring solutions, like Applicant Tracking Systems (ATS), more crucial than ever. In a remote-first world, the recruitment process must be conducted entirely online. Traditional methods of in-person interviews and on-site assessments are no longer feasible for many roles. As a result, businesses are turning to ATS platforms that integrate seamlessly with virtual communication tools (e.g., Zoom, Microsoft Teams) to facilitate remote interviews and assessments. ATS systems can schedule and manage these virtual interactions, making it easier for both recruiters and candidates to coordinate interviews across different time zones and locations.
- Growing Use of Data-Driven Hiring: The growing emphasis on data-driven hiring has fundamentally transformed how organizations approach talent acquisition. As competition for top talent intensifies and hiring becomes more complex, companies are increasingly turning to Applicant Tracking Systems (ATS) to leverage data analytics and gain insights into their recruitment processes. This shift toward data-driven decision-making is helping organizations optimize their hiring strategies, improve candidate quality, and ultimately enhance the overall effectiveness of their recruitment efforts. ATS platforms provide comprehensive performance metrics that enable organizations to measure the effectiveness of their recruitment processes. Key performance indicators (KPIs) such as time-to-fill, cost-per-hire, and source-of-hire give HR teams actionable insights into where improvements can be made. For instance, if the time-to-fill for certain roles is longer than desired, the ATS can help identify bottlenecks in the recruitment process, whether it's in candidate sourcing, screening, or interview scheduling.
- Geographical Insights: In 2024, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific, respectively. Asia Pacific is expected to register the highest CAGR during the forecast period.
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Market Segmentation
- Based on deployment model, the Applicant Tracking System (ATS) market is divided into cloud and on-premises. The cloud segment is anticipated to grow in the forecast period.
- By component, the market is segmented into solutions and services. The services segment is anticipated to grow in the forecast period.
- Based on end user, the Applicant Tracking System (ATS) market is divided into BFSI, IT and Telecom, manufacturing, and others. The BFSI segment are anticipated to grow in the forecast period.
Competitive Strategy and Development
- Key Players: A few of the major companies operating in the Applicant Tracking System (ATS) market are ApplicantStack, ATS Ondemand, Clearcompany, Greenhouse Software, IBM, iCIMS, JazzHR, Jobvite, Oracle, SAP SE.
- Trending Topics: Workforce Management, Staffing and Recruitment, etc.
Global Headlines on Applicant Tracking System (ATS) Market
- Barrett Business Services, Inc. (BBSI) (NASDAQ:BBSI), a leading provider of business management solutions, is proud to announce the launch of BBSI Applicant Tracking System (ATS), a cutting-edge tool designed to simplify and enhance the hiring process for businesses of all sizes.
- WorkLLama, a company at the forefront of AI-driven talent solutions, announced the introduction of its new Applicant Tracking System (ATS), aimed at enhancing the recruitment process.
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Conclusion
In 2024, the United States dominated the North American applicant tracking system (ATS) market, holding a commanding 92.40% share. This leadership is primarily driven by robust employment growth across key industries, significantly increasing the need for efficient recruitment technologies. According to the U.S. Bureau of Labor Statistics, November 2024 saw notable job gains in several sectors. The healthcare industry alone added 19,000 positions in hospitals and 12,000 in nursing and residential care facilities. This surge in demand for qualified healthcare professionals underscores the critical need for streamlined recruitment processes, positioning ATS solutions as essential tools for hospitals and care providers to manage high-volume, time-sensitive hiring.
Similarly, the leisure and hospitality sector contributed 53,000 new jobs during the same period, further amplifying the requirement for scalable recruitment platforms capable of handling large applicant pools efficiently. Additionally, government employment grew by 33,000 jobs, highlighting the public sector's increasing reliance on digital recruitment solutions to manage complex and large-scale hiring initiatives. These employment trends across healthcare, hospitality, and the public sector reflect a broader market shift toward the adoption of ATS platforms as strategic enablers of workforce expansion. Organizations are leveraging ATS not only to accelerate hiring timelines but also to enhance candidate quality, ensure compliance, and remain competitive in a tightening labor market. As a result, the growing demand for talent acquisition efficiency is solidifying the role of ATS as a critical investment for both private and public sector employers across the North America.
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