(MENAFN- Straits Research) Report Description Market Synopsis
The global applicant tracking system market is expected to grow at a CAGR of approximately 8.9% during the forecasted period, i.e., 2021–2026, with an estimated revenue of USD 2.2 billion.
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Applicant Tracking System: Aiding Businesses Acquire Talent
An applicant tracking system organizes and automates the hiring process. Applicant tracking systems use machine learning and artificial intelligence to sort and filter applications, send follow-up emails, and study candidates. Manual analysis of candidate submissions is becoming obsolete due to time, expense, and bias issues. An ATS provides actionable data and reduces recruiting time and expenses.
The necessity to automate recruitment procedures and the shift from traditional to online recruitment will drive the industry. Talent acquisition specialists are continuously seeking new and better ways to hire. Finding the right people in a big pool of applications is the most difficult element of recruitment. On average, HR professionals spend over a third of their workweek sourcing applicants. New automation tools are on the horizon, promising to modernize recruiting activities.
The rise in growth is attributed to enhanced cloud technology services, which allow thousands of consumers to share resources, lowering prices. According to data, cloud-based systems that help build new technology also fuel industry demand. Companies compete and change strategies to develop new products and gain market share. Applicant tracking software supports firms in marketing their brand to qualified job seekers.
Increasing Automation Drives the ATS Market
Individual applicant tracking, automated resume ranking, customized input forms, and interview scheduling are just a few of the automated features that will likely entice businesses to purchase the product. The system's automated capabilities boost efficiency and productivity, which is likely to propel the application tracking system (ATS) market forward during the forecast period.
The move from traditional to online or e-recruitment also influences the applicant tracking system industry. Facebook has 2.8 billion active members, and LinkedIn has 740 million. According to Glassdoor, 79% of recent job seekers used social media. Recruiting automation has progressed beyond newspaper ads to social media recruiting. Recruiters use software-enabled automation for hiring due to the sales and marketing industry success. New technologies are emerging to address traditional recruitment challenges, from candidate sourcing to final hiring decisions.
The Surge in the Usage of Social Media Facilitates the ATS Market
Social media is an online communication ecosystem that allows communities or networks to share information. People currently communicate via social media, making it a potentially beneficial source of information for recruitment. Smartphone apps and mobile internet connectivity have assisted the spread of mobile-first or mobile-only social networking apps.
The rise of social media also presents chances for employment and recruiting. The acceptance of organizations that connect with candidates via social media has increased. Hiring managers can use social media to connect with talent. When paired with social media, an ATS becomes a potent recruiting tool. Surveys show that at least 84% now use social media for recruitment. Social media's growth allows ATS software and solution suppliers.
Software Sub-Segment to Drive the Market Demand
Components separate the market into software and service divisions. Since applicant tracking software is used by small and medium-sized, and large enterprises alike, it is predicted to grow swiftly in the software segment. Using AI in applicant tracking software helps organizations score and classify resumes more closely to job requirements. Machine learning is used to rapidly and accurately match CVs with job criteria.
ATS software provides organizations with the flexibility of customizing the software to meet the needs of their end-users while also being tailor-made. ATS features are frequently combined with workforce management in vendor-provided Human Capital Management (HCM) suites to manage the entire hiring process, from the applicant tracking to employee life cycle management.
Cloud-Based Deployment Accounts for a Larger Market Share
The market is split into cloud and on-premises. Cloud deployment offers greater flexibility, reduced costs, and better security. With a network-based or cloud-based application tracking system, anyone with an internet connection can access the system, eliminating the need to install software to access data and allowing recruiters to continue hiring without interruption. Using recruiting software has enhanced the hiring process for 94% of recruiters and hiring managers, according to Capterra.
Due to the benefits of enhanced and organized storage and readily available data, the cloud deployment type is becoming more popular due to the rapid growth in data generation and advanced technologies such as the Internet of Things (IoT) and analytics. Cloud-deployed ATS are appealing to businesses and government agencies because they are simple to set up, agile, and offer more features than on-premises ATS at a lower cost.
Large Enterprises Segment Holds Humongous Market Share
Based on the size, the market is divided into small and medium-sized en and large enterprises. Businesses of all sizes are extending the need for applicant tracking systems. The ATS industry is highly consolidated, with IBM, Oracle, and SAP SE accounting for 70% of the market. These companies need aid in the hiring procedures. Applications may be received, stored, and processed efficiently with applicant tracking software. These solutions can help keep hiring employees up to date on applicable laws. This, in turn, fuels the applicant tracking system market.
Dynamic Employment in IT and Telecom Vertical Boosts the Market
The market is divided into BFSI, telecom and IT, retail, manufacturing, and other verticals. Due to the growing demand for talent worldwide and the increasing number of candidates every day, the IT and telecommunications industry is expected to adopt applicant tracking systems.
Further, due to the fast-changing nature of technology and the constant need to hire qualified and skilled personnel, the employment market in the IT and telecommunications sector is dynamic. IT and telecommunications companies frequently use applicant tracking systems to deal with these issues.
Impact of COVID-19
The economic crisis brought on by the COVID-19 pandemic piqued companies' interest in applicant tracking system software even more. Despite the lockdown, the global recruitment software market grew by 4.54% year over year (YOY) in 2020. Filling hot positions to keep companies afloat was difficult due to social distancing and stay-at-home policies.
The go-to method for keeping the hiring process moving and protecting both recruiters and candidates was remote recruiting. A shift to virtual recruiting, on the other hand, necessitates robust applicant tracking techniques and feature-rich solutions. As a result, most businesses have adopted hiring automation and virtual interviewing tools such as Microsoft Teams, Skype, and Zoom, resulting in the growth of the applicant tracking system market.
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North American Dominance Over the Market
For many years, North America and Europe have been the primary drivers of demand for recruiting software. North America currently holds a 36 % share of the ATS market and is expected to maintain this position shortly.
The large North American applicant tracking system industry is due to the presence of many corporate headquarters. Simply put, this region's workforce is the most tech-savvy. To acquire a competitive advantage and grow operations, most organizations are focused on inventing new technology. In the manufacturing industry, cost reductions associated with local production and automation are projected to drive the market.
The applicant tracking system market in Europe is predicted to grow swiftly due to technological advancements in applicant tracking systems that improve staffing operations and recruiter productivity. Artificial intelligence is increasingly used in the region due to its efficiency and speed.
Recruiting highly trained and qualified candidates in Asia-Pacific requires applicant monitoring software. Moreover, Asia-Pacific is rapidly industrializing, urbanizing, transforming agriculture, and diversifying its economy, increasing work prospects. With the migration of employees from farmland to cities, applicant tracking systems have become popular. China's demand for skilled labor is rising due to an aging population and strong growth in the service sector.
The major companies operating in the market are BambooHR LLC, Cornerstone OnDemand, Inc., IBM Corporation, iCIMS, Inc., Oracle, Paycor, Inc., Peoplefluent, SAP SE, Workday, Inc., Zoho Corporation Pvt. Ltd, among others.
October 2021- Pillar has announced the launch of a platform for interview intelligence. The platform combines artificial intelligence with in-interview coaching to provide businesses with a reliable way to assess a candidate's suitability for a position during the interview process. The software also enables teams to make more equitably distributed hiring decisions while saving money and time.
November 2021- VNDLY, a cloud contractor and vendor management provider, was acquired by Workday for USD 510 million. Workday hopes to combine optimization tools for both internal and external salaried, hourly, contingent, and outsourced workers with this move. Workday claims to achieve a holistic approach to talent management, costs, planning, and compliance.
Global Applicant Tracking System Market: Segmentation
By Organization Size
- Small and Medium-Sized Enterprises
- Large Enterprises
- Telecom and IT
- North America (the U.S., Canada)
- Europe (Germany, France, the U.K., Italy, Spain, The Netherlands, Rest of Europe)
- Asia-Pacific (China, India, Indonesia, Japan, South Korea, Malaysia, Rest of Asia-Pacific)
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America)
- The Middle East and Africa (GCC, South Africa, Brazil, Egypt, Rest of MEA)