DELRAY BEACH, Fla., Aug. 18, 2025 /PRNewswire/ -- According to MarketsandMarkets, the Applicant Tracking System Market is expanding rapidly, with the market size anticipated to rise from about USD 3.28 billion in 2025 to USD 4.88 billion by 2030, at a CAGR of 8.2% during the forecast period.
Browse 180 market data Tables and 150 Figures spread through 300 Pages and in-depth TOC on "Applicant Tracking System Market - Forecast to 2030"
Scope of the Report
- Market Size Available for Years: 2020-2030
- 2025 Market Size: USD 3.28 billion
- 2030 Projected Market Size: USD 4.88 billion
- CAGR (2025-2030): 8.2%
- Segments covered: Offering, Functionality, Deployment Type, Organization Size, and Vertical.
- Region Highlight: Asia Pacific to witness highest CAGR during forecast period
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The shift toward remote and hybrid hiring models is expected to be a key driver for adopting applicant tracking systems (ATS). As companies move toward more flexible work structures, there is a growing need for digital tools that can support remote recruitment processes. ATS platforms help streamline hiring by allowing recruiters and managers to collaborate, schedule interviews, and share feedback from different locations. They also integrate with video interview tools and assessments, making it easier to manage candidates virtually. With centralized access to data and automated communication, ATS ensures a smooth and consistent experience for both recruiters and applicants. This makes it an essential solution for managing recruitment efficiently in remote and hybrid work environments.
Based on deployment type, on-premises segment to hold largest market share in 2025
On-premises applicant tracking systems are expected to hold the largest market share due to their strong appeal among large enterprises and government organizations prioritizing data security, compliance, and customization. These organizations often manage sensitive candidate information and prefer to maintain complete control over their recruitment data and infrastructure, making on-premises deployment a preferred choice. The ability to tailor the ATS according to internal workflows and integrate it with legacy systems also contributes to its continued demand. On-premises solutions offer greater control over system updates, access permissions, and data storage, which is crucial for industries with strict regulatory requirements. While cloud-based solutions are gaining popularity, the stability, privacy, and long-term cost control provided by on-premises ATS continue to make it a reliable option for organizations with large-scale hiring needs and established IT capabilities. This sustained preference supports its dominant position in the deployment segment.
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Based on offering, services segment to register highest CAGR during forecast period
The services segment is expected to grow substantially due to the rising need for expert support in implementing and optimizing applicant tracking systems. Organizations increasingly seek consulting, integration, training, and support services to ensure smooth deployment and effective use of ATS platforms. As solutions become more advanced and customizable, businesses rely on service providers to align the technology with their hiring goals. The shift toward cloud-based models further drives ongoing support and maintenance demand. Managed services are also gaining traction, enabling companies to continuously monitor and enhance their recruitment processes. With talent acquisition becoming more strategic, enterprises are turning to professional services to improve efficiency, reduce hiring timelines, and deliver a better candidate experience. This growing reliance on services creates new opportunities for vendors to expand their offerings and support organizations through every stage of the recruitment lifecycle.
Based on region, Asia Pacific to witness highest CAGR during forecast period
The Asia Pacific (APAC) region is expected to witness significant growth in the applicant tracking system (ATS) market, supported by accelerated digital transformation and the growing need for efficient, tech-enabled recruitment solutions. Organizations across emerging economies such as India, China, and Southeast Asia are increasingly adopting ATS platforms to streamline hiring, enhance candidate experience, and improve recruitment outcomes. In Southeast Asia, the rise of digital recruitment tools is evident, with Malaysia reporting a 16% year-on-year increase in e-recruitment activity, reflecting a broader regional trend toward automation in hiring. AI-powered platforms like Kalibrr and Job3s.vn have scaled significantly, processing millions of job applications annually and earning recognition for innovation in recruitment. Additionally, over 60% of professionals in Malaysia now prefer hybrid work models, prompting employers to invest in digital hiring infrastructure that supports remote recruitment. These developments and growing investment from SMEs and startups reinforce APAC's position as the fastest-growing region in the global ATS Market.
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Top Key Companies in Applicant Tracking System Market:
Some of the key applicant tracking system vendors are Oracle (US), iCIMS (US), SAP (Germany), Workday, Inc. (US), Bullhorn (US), Greenhouse Software (US), Smartrecruiters (US), UKG Inc. (US), ADP (US), and Jobvite (US).
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