Applicant tracking systems (ATS) are software applications that enable the electronic handling of recruitment needs. ATS help efficiently sort and filter through volumes of relevant and irrelevant resumes for open job positions. They offer advantages like streamlining hiring workflows, reducing time-to-hire, and improving the candidate experience. As organizations focus on recruiting top talent efficiently, the need for automating redundant recruitment tasks is surging.

The global Applicant Tracking System Market is estimated to be valued at US$ 2.67 Bn in 2023 and is expected to exhibit a CAGR of 6.47% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity in automating the recruitment process through ATS is driving the market growth. ATS automate various redundant tasks involved in sourcing, recruiting and hiring candidates. They enable recruiters to post jobs, screen resumes, schedule interviews and perform background checks digitally with minimal manual effort. This streamlines workflows and reduces time spent on administrative tasks. As organizations actively pursue initiatives to improve hiring efficiency, demand for applicant tracking systems that optimize recruitment functions is increasing significantly. Their ability to source more targeted candidates in less time makes ATS an ideal solution for businesses seeking to fill positions faster. The growing need for automating traditionally labor-intensive recruitment tasks will continue promoting adoption of ATS globally.

Porter's Analysis:
Threat of new entrants: The applicant tracking system market has moderate threat from new entrants as it requires significant investments and technical expertise. However, cloud-based systems have lowered the entry barriers to some extent.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many vendors offering specialized applicant tracking systems. However, switching costs are relatively low.
Bargaining power of suppliers: Software developers and technology providers have moderate bargaining power due to the availability of alternative solutions.
Threat of new substitutes: Threat from substitutes is low as applicant tracking systems provide efficient hiring solutions compared to traditional methods.
Competitive rivalry: The market is highly competitive with major vendors differentiating based on product features, pricing, and customer support.

SWOT Analysis:
Strengths: Applicant tracking systems streamline and automate the applicant workflow. They enable recruitment teams to manage a large volume of applications efficiently.
Weaknesses: On-premises solutions require high capital investments and maintenance costs. Data security is also a concern for some organizations.
Opportunities: Growing adoption of cloud-based solutions offers significant growth opportunities. Integration with other HR tools provides enhanced functionality.
Threats: Stiff competition from both established and emerging players. Changing compliance regulations pose compliance challenges.

Key Takeaways:
The global applicant tracking system market is expected to witness high growth during the forecast period. Rapid digital transformation and talent acquisition processes are fueling adoption.

North America dominates the market currently due to advanced adoption. However, Asia Pacific is expected to grow at the fastest pace led by countries like India and China. Growing investments in talent management solutions are driving the regional market.

Key players operating in the applicant tracking system market are IBM Corporation, Oracle Corporation, Jobvite Inc., Bullhorn Inc. (Vista Equity Partners), iCIMS Inc. Major players are focusing on enhancing product capabilities and expanding into new markets to gain shares.