Dublin, March 30, 2023 (GLOBE NEWSWIRE) -- The "Application Tracking Systems Market By Deployment, By Organization, By Component, By Application, By End-Use, and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The size of the global market for Application Tracking Systems (ATS) was USD 2.34 Billion in 2021 and is expected to witness a revenue Compound Annual Growth Rate (CAGR) of 6.8% during the forecast period.
The growth in revenue can be attributed to the rising demand for efficient workforce management and the increasing adoption of cloud-based platforms, as well as mobile-based recruitment systems.
Companies use applicant tracking systems in combination with relational marketing programs to hire new employees. ATS can be employed to review resumes, post job openings on a company website or job board, and send email interview invitations to qualified candidates. Applicant tracking software is gaining widespread acceptance among enterprises and governments due to the need for automating the hiring process. Through the use of data mining and natural language processing, ATS software reduces bias and manual errors while automating candidate screening and job application submission across multiple job boards.
Large companies are adopting ATS to expand their operations by attracting qualified candidates and job opportunities that align with their objectives and values. These businesses require a support system to assist them with the recruitment process, and an applicant tracking system simplifies the collection, storage, and management of applications. According to research, nearly 99% of Fortune 500 companies use one or more ATS systems such as PeopleFluent, Oracle's Taleo, Avature, or Greenhouse. In smaller businesses, Capterra discovered that 75% of recruiters and personnel managers use an applicant tracking system to some degree.
The Covid-19 pandemic has disrupted the global economy, but it has also accelerated the adoption of digital technologies. Essential corporate tasks are now being carried out online in business ecosystems with the help of cutting-edge technologies. For instance, due to social distancing, prolonged lockdowns, and remote work, many commercial organizations around the world are transitioning to automated applicant tracking systems to recruit and manage their workforce more efficiently.
Market Dynamics
Driver: Rising requirements for efficient workforce management and growing usage of social media platforms for job searches
Application tracking systems have evolved beyond their original purpose of automating recruitment processes and now feature advanced branding options, equality and diversity capabilities, and the use of Artificial Intelligence (AI) to analyze resumes and identify top candidates for open positions. ATS systems allow Human Resource (HR) managers and recruiters to quickly sift through a large number of applications by eliminating candidates who do not meet specific requirements. According to a survey, each online job advertisement receives an average of 250 applicants. There is a growing need for more efficient workforce management solutions, and both large enterprises and startups are working to simplify, streamline, and make recruitment processes more equitable. For example, TestGorilla, based in Amsterdam, has raised over USD 66 million for its cutting-edge technology that has revolutionized the recruitment process.
Restraint: Difficulties to manage hourly labor and discrimination in nature
Approximately 70% of the global workforce is composed of hourly workers, yet the majority of hiring software is designed for filling corporate positions. Classic ATS firms have been unable to keep up with the gig and service economy's growth. The hourly labor sector is facing even greater difficulties due to the Great Resignation. According to a survey, 20% of workers plan to change jobs in the next year, while 35% intend to request a raise due to limited prospects for advancement and underwhelming perks. The resulting exodus is making it challenging for businesses in various industries, including technology, restaurants, and retail, to find employees. The high rate of job turnover is putting pressure on HR departments, and many expect that hiring will become more challenging in the coming years.
Talent managers typically use keywords to convey their search criteria to ATS, which then identifies resumes that meet the criteria and disregards those that do not. The machine can complete the process of reading through each resume, which would have taken hours, in just a few minutes. However, this approach has a history of perpetuating discrimination and may be excluding the types of leaders that people truly want to follow, thereby limiting the market's revenue growth.
Key Takeaways
Deployment Outlook
The global application tracking systems market is segmented based on deployment, application, and end-use. The deployment segment is categorized into on-premises and cloud. The cloud deployment segment is projected to dominate the market and witness the highest revenue growth during the forecast period. Cloud deployment offers various benefits, such as improved security, scalability, flexibility, and lower costs, which is contributing to its popularity. Additionally, the availability of data when required and organized storage is making cloud deployment more popular, driven by the growth of data production and usage of advanced technologies such as IoT and analytics. Moreover, the risk of internal breaches is lower in cloud-based systems due to no physical systems to safeguard.
Application Outlook
The application segment is divided into IT and telecom, BFSI, manufacturing, retail, and others. The IT and telecom segment is anticipated to register the highest revenue CAGR during the forecast period. With approximately 75,000 job applications received by large corporations such as Google each week, applicant tracking systems provide a means for recruiters to track the progress of applicants as they submit applications. An efficient ATS should allow for saving, commenting, sharing, and exploring applicant profiles and resumes with ease. Additionally, the ability to centralize and track all applicant conversations in a single location makes the hiring and tracking process in the IT industry easier.
End-Use Outlook
The end-use segment is categorized into HR platforms, social media, and others. The social media segment is projected to witness the second-largest revenue share in 2021. Social media is a widely-used communication platform that enables individuals to share information within networks or communities. With mobile apps and portable internet connectivity, cellphone or mobile-only social networking apps have become more popular. Furthermore, the expansion of social media has opened new opportunities for recruitment and employment, with organizations that interact with candidates on social media gaining popularity. When combined with social media, applicant tracking systems can become a potent recruiting tool. Moreover, according to surveys, at least 84% of businesses use social media for hiring, which is expected to drive revenue growth in this segment.
Key Topics Covered:
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 3. Indicative Metrics
Chapter 4. Application Tracking Systems (ATS) Market Segmentation & Impact Analysis
4.1. Application Tracking Systems (ATS) Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers' analysis
4.2.2.1. Rising requirement for efficient workforce management
4.2.2.2. Growing adoption of cloud-based solutions
4.2.2.3. Growing usage of social media platforms for job search
4.2.3. Market restraints analysis
4.2.3.1. Difficulties to manage hourly labor
4.2.3.2. Biased and discriminatory in nature
4.3. Technological Insights
4.4. Regulatory Framework
4.5. ETOP Analysis
4.6. Porter's Five Forces Analysis
4.7. Competitive Metric Space Analysis
4.8. Price Trend Analysis
4.9. Customer Mapping
4.10. Covid-19 Impact Analysis
4.11. Global Recession Influence
Chapter 5. Application Tracking Systems (ATS) Market By Deployment Insights & Trends
Chapter 6. Application Tracking Systems (ATS) Market By Organization Insights & Trends
Chapter 7. Application Tracking Systems (ATS) Market By Component Insights & Trends
Chapter 8. Application Tracking Systems (ATS) Market By Application Insights & Trends
Chapter 9. Application Tracking Systems (ATS) Market By End-Use Insights & Trends
Chapter 10. Application Tracking Systems (ATS) Market Regional Outlook
Chapter 11. Competitive Landscape
Chapter 12. Company Profiles
Companies Mentioned
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