• iCIMS announced in October 2022 its acquisition of SkillSurvey to streamline reference checking, aiming to reduce costs and time for its customers.

• Cornerstone, in September 2022, unveiled enhancements to EdCast, its learning experience platform, which it had previously acquired. These improvements include cross-platform integrations, intuitive insights and dashboards, and enhanced skill capabilities.

• In June 2021, Telefonica Tech and IBM collaborated to launch hybrid cloud solutions leveraging AI and blockchain technologies. This initiative supports an open hybrid cloud strategy aimed at accelerating enterprise innovation to meet evolving customer needs.

• Oracle, in December 2021, revealed its plans to acquire Cerner Corporation. This acquisition aims to provide medical professionals with easier-to-use digital tools, enabling hands-free access to information through secure cloud applications.

In this report, the Applicant Tracking System Market has been segmented by Component, Deployment, Organization, Vertical, and Geography.

Applicant Tracking System Market, Segmentation by Component

The Applicant Tracking System Market has been segmented by Component into Software and Services.

Software
The software segment dominates the Applicant Tracking System Market, accounting for nearly 65% of the total market share. This growth is driven by the increasing adoption of cloud-based recruitment platforms, AI-powered resume parsing, and real-time analytics that help streamline hiring workflows. Organizations prefer software solutions for their scalability, automation, and integration capabilities with other HR systems.

Services
The services segment makes up around 35% of the market, supported by the growing demand for consulting, integration, and support services. Companies rely on service providers for seamless implementation, customization, and ongoing maintenance of applicant tracking solutions. This segment is crucial for businesses lacking internal expertise in managing complex ATS environments.

Applicant Tracking System Market, Segmentation by Deployment

The Applicant Tracking System Market has been segmented by Deployment into On-premises and Cloud.

On-premises
The on-premises deployment segment holds approximately 40% of the Applicant Tracking System Market. It is favored by organizations that require enhanced data security, customized configurations, and full control over infrastructure. This deployment model is particularly common in large enterprises and regulated industries with strict compliance requirements.

Cloud
The cloud deployment segment leads the market with a share of around 60%, driven by its cost-efficiency, scalability, and ease of access. Businesses of all sizes, especially SMEs, are increasingly adopting cloud-based ATS due to lower upfront costs, automatic updates, and remote accessibility, which enhance operational flexibility and reduce IT burden.

Applicant Tracking System Market, Segmentation by Organization

The Applicant Tracking System Market has been segmented by Organization into SMEs and Large Enterprises.

SMEs
Small and Medium-sized Enterprises (SMEs) account for approximately 45% of the Applicant Tracking System Market. These businesses are adopting ATS solutions to streamline manual hiring processes, reduce recruitment costs, and enhance candidate experience. The availability of cloud-based, affordable, and scalable ATS platforms has significantly boosted adoption among SMEs.

Large Enterprises
Large enterprises represent about 55% of the market share, owing to their complex hiring needs and high-volume recruitment demands. They prioritize advanced features like AI-based candidate screening, system integration, and compliance management. These organizations invest in robust ATS platforms to ensure efficiency, accuracy, and global hiring consistency.

Applicant Tracking System Market, Segmentation by Vertical

The Applicant Tracking System Market has been segmented by Vertical into BFSI, IT & Telecommunications, Government & Public Sector, Retail & Consumer Goods, Manufacturing, Healthcare & Life Sciences, and Others.

BFSI
The BFSI sector contributes nearly 20% to the Applicant Tracking System Market, leveraging ATS to manage large-scale recruitment, ensure compliance, and facilitate secure data handling. Banks and financial institutions require advanced screening tools and workflow automation to hire talent efficiently and meet regulatory standards.

IT & Telecommunications
The IT & Telecommunications segment accounts for around 18% of the market, driven by the demand for high-skilled tech talent. Companies in this sector utilize ATS platforms for rapid hiring, skill matching, and integrating with HR tech ecosystems. Agile hiring processes are crucial to maintaining competitiveness in this fast-moving vertical.

Government & Public Sector
Holding approximately 10% of the market share, the Government & Public Sector relies on ATS for transparent recruitment, compliance adherence, and structured evaluations. These systems help public organizations manage large applicant volumes while maintaining fairness and regulatory alignment.

Retail & Consumer Goods
The Retail & Consumer Goods vertical contributes around 15%, with businesses needing efficient ways to fill high-turnover roles and manage seasonal hiring spikes. ATS solutions offer centralized candidate databases, automated shortlisting, and mobile recruitment capabilities, critical for fast-paced retail environments.

Manufacturing
The Manufacturing sector represents nearly 12% of the ATS market. This segment emphasizes blue-collar hiring, shift-based recruitment, and compliance with labor regulations. ATS platforms help streamline operations, especially in regions with complex labor laws and high-volume hiring needs.

Healthcare & Life Sciences
Making up around 13%, the Healthcare & Life Sciences vertical uses ATS for credential verification, compliance tracking, and rapid deployment of skilled professionals. Amid rising demand for healthcare workers, ATS tools play a vital role in speeding up hiring without compromising quality.

Others
The Others category, covering industries such as education, logistics, and hospitality, comprises about 12% of the market. These sectors benefit from ATS through time-saving automation, candidate engagement, and reduced hiring costs, especially for diverse and decentralized workforces.

Applicant Tracking System Market, Segmentation by Geography

In this report, the Applicant Tracking System Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Applicant Tracking System Market Share (%), by Geographical Region

North America
North America leads the Applicant Tracking System Market with a share of over 35%, driven by early technological adoption, strong HR tech ecosystems, and widespread use of cloud-based recruitment platforms. The U.S. remains the dominant market due to the presence of key industry players and high investment in automated hiring solutions.

Europe
Europe holds approximately 25% of the global ATS market, with countries like the UK, Germany, and France adopting ATS to support GDPR-compliant hiring and enhance candidate management. Growth in this region is fueled by increased demand for efficient recruitment processes across diverse industries.

Asia Pacific
Asia Pacific is the fastest-growing region, capturing around 20% of the market. Rapid digital transformation, a large young workforce, and growing start-up ecosystems in countries such as India, China, and Australia are accelerating ATS adoption. Cloud-based platforms are especially popular among SMEs in this region.

Middle East and Africa
The Middle East and Africa region contributes roughly 10% to the ATS market. Increasing demand for modern HR infrastructure, particularly in the Gulf Cooperation Council (GCC) countries, and a focus on national workforce development are key growth drivers.

Latin America
Latin America represents around 10% of the global market, with rising adoption in Brazil, Mexico, and Argentina. Businesses in this region are turning to ATS platforms for streamlined hiring, cost savings, and better talent acquisition strategies, especially in the retail and manufacturing sectors.

This report provides an in depth analysis of various factors that impact the dynamics of Global Applicant Tracking System Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Automation of recruitment processes
• Increasing demand for cloud-based solutions
• Growing focus on hiring efficiency

• Integration with HR analytics - Integration with HR analytics is a major driver of the global applicant tracking system (ATS) market, as organizations increasingly rely on data-driven insights to streamline and improve recruitment processes. By integrating ATS platforms with HR analytics tools, employers can gain a deeper understanding of candidate behavior, hiring trends, and performance metrics. This allows for more informed decision-making, better talent acquisition strategies, and improved alignment between recruitment goals and business outcomes.

  Advanced analytics enable HR teams to track key indicators such as time-to-hire, source effectiveness, and candidate engagement, helping them identify bottlenecks and optimize workflows. The ability to correlate applicant data with long-term employee success also supports smarter hiring decisions and reduces turnover. As workforce planning becomes increasingly strategic, the synergy between ATS and analytics is proving essential for building efficient, scalable, and predictive recruitment ecosystems.

Restraints

• High implementation and maintenance costs
• Data privacy and security concerns
• Complexity in system integration

• Resistance to change in workflows - Resistance to change in workflows is a significant restraint in the global applicant tracking system (ATS) market, particularly among organizations with deeply ingrained manual recruitment practices. Transitioning to an automated system often requires a shift in routine, employee training, and process restructuring, which can meet internal pushback. Many HR teams may hesitate to adopt new technologies due to concerns about disruption, learning curves, or perceived complexity in adapting to digital tools.

  This resistance is more pronounced in small to mid-sized enterprises where recruitment roles are often shared across departments and established habits dominate daily operations. Without clear leadership support and structured change management, the adoption of ATS solutions may be delayed or poorly implemented. Overcoming this challenge requires strong internal communication, user-friendly interfaces, and demonstrable ROI to ensure successful system integration and workforce acceptance.

Opportunities

• Expansion in emerging markets
• Advancements in artificial intelligence
• Customization and scalability options

• Rise in remote and gig economy - Rise in remote and gig economy presents a major opportunity for the global applicant tracking system (ATS) market, as organizations face increasing pressure to efficiently manage a geographically dispersed and flexible workforce. The surge in remote work and freelance hiring has created a complex recruitment environment that demands scalable, digital-first solutions. ATS platforms equipped with cloud capabilities, real-time collaboration tools, and automated candidate filtering are becoming essential for sourcing, assessing, and onboarding talent from diverse locations.

  As companies expand their talent pools globally, they require systems that can handle high volumes of applicants, ensure compliance with varying regulations, and deliver personalized candidate experiences. ATS solutions offer streamlined workflows and data-driven insights to support this evolving hiring landscape. The growing normalization of hybrid and gig-based models is expected to sustain long-term demand for flexible and intelligent applicant tracking systems across industries.

Key players in Global Applicant Tracking System Market include:

• Oracle
• SAP
• Workday
• IBM
• ADP
• Cornerstone OnDemand
• Ultimate Software
• BambooHR
• Greenhouse
• Jobvite

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis