Applicant Tracking System Market Size

Applicant Tracking System Market size was over USD 16.16 billion in 2024 and is poised to reach USD 42.05 billion by the end of 2037, growing at around 8.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of applicant tracking system is assessed at USD 17.26 billion.

The growth of the market can be attributed to the growing need for automation of recruitment processes. For instance, HR automation is used by 27% of companies worldwide, mainly for recruiting and hiring. HR automation contributes to reducing potential bias during the hiring process, according to 32% of survey respondents. Automation of recruitment processes helps streamline the recruitment process by eliminating manual tasks, improving the speed and accuracy of the recruitment process, and helping to reduce costs. Automation also helps to improve the quality of the talent pool by ensuring that the right people are identified and evaluated.

In addition to these, factors that are believed to fuel the market growth of applicant tracking system include the increasing need for streamlining recruitment processes, the rise in demand for analytics-driven recruitment, and the need for reducing recruitment costs. According to estimates, the average hiring cost in the United States is USD 4,500. Hiring a new employee with benefits can cost as much as 42% of the employee's base salary. Applicant tracking systems can help automate and streamline the recruitment process, from job postings to candidate screening and selection. This can help save time and money, as it eliminates the need for manual processes and reduces the amount of time needed to find and hire qualified candidates.