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An Applicant Tracking System (ATS) is software for managing different stages of the recruitment process.

Due to the growing number of applicants, usingATShas become essential for companies.

For example, 97.4%[2]of Fortune 500 companies used ATS in 2023.

If we break down ATS based on company size, its use is significantly higher in large companies.

The ATS market size was $15.03 billion[4]in 2023.

By 2030, it is expected to reach $26.24 billion.

The use of ATS is the lowest in Government agencies as it constitutes only 8% of the use.

Not all global regions use ATS equally.

They were followed by the countries of Europe and Asia Pacific.

ATS Usage by Recruitment Teams

Companies and hiringagencies are increasingly using ATS.

ATS Efficiency and Performance

The use of ATS affects the efficiency of the hiring process.

Here are some interesting stats on the impact of ATS on recruiters performance.

86%[11]of ATS users claim that the software reduces their time-to-hire.

It does so by identifying top talents through automating candidate resume analysis.

Reduction in Hiring Costs

The use of an ATS helps companies financially.

Small businesses can save up to $10,000[13]by implementing an ATS in their recruitment process.

Automation of Recruitment Tasks

ATS automates repetitive tasks like resume screening and improves recruiter efficiency.

70% of hiring executives[16]said that ATS increased their productivity by automating candidate sourcing.

Applicant Tracking System for Applicants

The use of ATS has a significant impact on theapplicant experienceas well.

Resume Filtering

While resume filtering, ATS focuses on keywords and resume file formats.

Thus, many resumes get rejected for being in the wrong file format.

Formatting Issues

A resume must have an ATS-friendly format to be properly screened by an ATS.

Otherwise, the software will overlook it.

The platforms have embraced AI, automation, and integration with other HR tools.

20%[21]of organizations plan to start using anATS with AI integrationwithin 2027.

Among all the organizations that use ATS, 79% utilize AI integration.

The growing demand forlow-cost ATSon-premises infrastructure will drive market growth.