The global applicant tracking system market was valued at USD 2.14 billion in 2021 and is projected to reach USD 3.71 billion by 2030, growing at a CAGR of 6.2% from 2022 to 2030. ATS platforms streamline the recruitment and hiring process by collecting, indexing, and storing candidate resumes in a centralized database, giving recruiters efficient access to applicant information.Technological advancements, particularly the integration of artificial intelligence (AI) and cloud-based computing, have significantly contributed to the commercial availability and functionality of modern ATS platforms. The software is increasingly deployed across various industries, including BFSI, manufacturing, IT & telecom, consumer goods & retail, healthcare & life sciences, energy & utilities, transportation & logistics, among others. The rising need for automation in these sectors is a major factor driving market growth, helping companies streamline applicant processing and increase the efficiency of hiring talented candidates.
Maintaining applicant records manually through spreadsheets is becoming impractical for recruiters, especially with high application volumes. ATS addresses this challenge by utilizing database management tools and workflow automation to simplify hiring processes.
Key Market Insights:
By Region:
North America led the applicant tracking system market in 2021, contributing over 40% of the revenue share. Growth is driven by countries like the U.S. and Canada, where digital transformation and the adoption of advanced recruitment technologies are rapidly accelerating.
By End-use:
The IT & telecommunications segment led the market in 2021 with a share of over 24%. The continuous demand for skilled talent and the large candidate pool in this sector are major factors propelling segment growth.
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Market Size & Forecast
2021 Market Size: USD 2.14 Billion
2030 Projected Market Size: USD 3.71 Billion
CAGR (2022-2030): 6.2%
North America: Largest market in 2021
Asia Pacific: Fastest growing market
Key Companies & Market Share Insights
Key players in this market are actively pursuing product development and strategic alliances to expand their offerings and solidify their global market position. Providers of ATS (Applicant Tracking System) solutions, in particular, have adopted a dual approach of organic and inorganic growth strategies. These include product enhancements, the introduction of new products, forging agreements and partnerships, expanding business operations, and engaging in mergers and acquisitions.
The trend of increasing collaborations and mergers & acquisitions is set to maximize both environmental and economic benefits for market participants. These strategic moves enable companies to share ideas, enhance technological capabilities, and strengthen internal expertise. For example, in March 2022, Cornerstone, a prominent recruiting software company, acquired EdCast. EdCast is a SaaS platform specializing in career mobility, learning, and employee skilling. This acquisition is anticipated to significantly bolster Cornerstone's market presence, establishing it as a leading talent management SaaS platform, thereby scaling its business operations and expanding its customer base.