The market for applicant tracking systems will grow from about $1.1 billion to $1.8 billion between 2017 and 2023, a compound annual growth rate of 8.3 percent, according to researcher MarketsandMarkets.
The key driver behind the growth is the increasing penetration of the Internet of Things and related technologies, such as big data and serverless architecture. Recruiters will increasingly depend on such solutions to automate their processes and enhance the candidate experience in a tight labor market, where every advantage counts.
Not surprisingly, the increasing popularity of cloud deployments is playing a role, as well. The IoT, of course, depends on the cloud for its very existence and companies continue to buy into the idea of cloud-based storage and retrieval of data through increasingly flexible systems. A cloud-deployed ATS is attractive, MarketsandMarkets said, because they’re easy to set up, agile and provide more functionality than on-premise systems for less cost.
“The adoption of ATS software and services among enterprises has become a central part of the business process, due to the ease of use and the flexibility they offer, and is expected to grow in the coming years,” the report said.
For enterprise-sized employers, especially, the integration of advanced ATS with existing HCM technology solutions provides a relatively straightforward option for simplifying their recruitment and onboarding processes, especially when backed by vendors who offer robust training and support processes.
In terms of market size, MarketsandMarkets said North America is the largest ATS market in 2018, though Asia-Pacific will be the fastest-growing between now and 2023. (MandM sees North America as a “matured market” when it comes to technology adoption.)
In both regions, IT and Telecommunications is seen to be the most dynamic vertical because of the “fast-changing landscape of technologies and the constant need to hire competent and skilled personnel.”
Because the company expects on-premise deployments to hold a larger market size in 2018, it predicts that the ATS market’s growth will require solutions that are compatible with existing infrastructure, especially as employers seek to accurately track candidate data across data centers, network file shares and local machines across the organization.
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