Key Applicant Tracking System Stats You Need to Know [2024 Updated]

An Applicant Tracking System (ATS) is software for managing different stages of the recruitment process. It automates tasks like collecting resumes, screening, scheduling interviews, and communicating with candidates, saving recruiters valuable time.

Due to the growing number of applicants, using ATS has become essential for companies. A Capterra research showed that 75%^[1] of recruiters and hiring professionals now use an ATS to manage their recruitment process.

This article highlights the key ATS statistics and trends, enabling readers to understand their significance in the job market.

Key Statistics on ATS Usage

Adoption Rate of ATS: 98% of the Fortune 500 companies
ATS Market Growth: 8.3% between 2023-2030
ATS Market Size: $15.03 billion in 2023
Industry-Specific Adoption: BSFI
Region with Most ATS Use: North America
ATS Adoption Rate Among Large Enterprises: 70%
ATS Adoption Rate Among SMBs: 20%
ATS Usage Among Recruiters: 75%
AI-Powered HR Tool Usage: 19%

ATS Market Growth

If you are interested to know about the current market size and projected growth of ATS, here are some interesting statistics:

Global Adoption Rates

While data on the global percentage of companies using ATS is unavailable, recent research shows the growing usage of ATS among enterprises. 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. While 70%^[3] of large companies use ATS, the rate is only 20% for SMEs. The ATS market size was $15.03 billion^[4] in 2023. By 2030, it is expected to reach $26.24 billion.

Industry Adoption Rates

As far as the industry-wise ATS adoption rate is concerned, a 2022 research report by Fortune Business Insight^[5] shows that the BFSI (Banking, Financial Services, and Insurance) industry tops the list with 23.2%, followed by the IT and Telecom industry with just below 20%. The use of ATS is the lowest in Government agencies as it constitutes only 8% of the use.

Geographic Adoption Trends

Not all global regions use ATS equally. Historically, as the early adopters of ATS software, North America and Europe have been more prevalent because of the technologically advanced nature of their workforces. In 2023, North America, consisting of countries like the USA, Canada, and Mexico, had 38% of the region-based market share^[6] of the ATS solution. They were followed by the countries of Europe and Asia Pacific.

ATS Usage by Recruitment Teams

Companies and hiring agencies are increasingly using ATS. 75% of recruiters^[7] use ATS in their hiring process, and 94% of recruiters^[8] affirmed that ATS has a positive impact on their organization’s hiring process. According to a report by Aptitude Research^[9], 90% of companies are using or willing to use their ATS for onboarding capabilities to make the process seamless.

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.

Impact on Time to Hire

ATS users noticed an average 60% shorter hiring cycle^[10] when they used the software. 86%^[11] of ATS users claim that the software reduces their time-to-hire.

Impact on Quality of Hires

According to the Recruitment Strategy Report by GetApp^[12], 78.5% of users say ATS has increased the quality of their hires, adding value to their organizations. 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. Businesses that use advanced analytics with an ATS have 56%^[14] greater revenue than those that don’t.

Automation of Recruitment Tasks

ATS automates repetitive tasks like resume screening and improves recruiter efficiency. A report by Aptitude Research^[15] shows that 68% of companies invested in hiring technology such as ATS with the aim of increasing hiring speed and 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 the applicant experience as well. The following stats will help you understand both the benefits and challenges that applicants experience when ATS is involved in the recruitment process.

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. The resume length does not matter for ATS as it screens the resumes against certain keywords provided by the recruiters. 19% of organizations using AI-powered HR tools^[17] have experienced applications accidentally overlooking or excluding qualified applicants.

Lack of Feedback

In a 2020 survey by HR.com^[18], 22% of participants said that the ATS can not effectively communicate with candidates.

Formatting Issues

A resume must have an ATS-friendly format to be properly screened by an ATS. Otherwise, the software will overlook it. Since the ATS can not read the resume properly, 75%^[19] of the qualified candidates are eliminated.

Trends in ATS Technology

In recent times, Applicant Tracking Systems (ATS) has incorporated several cutting-edge technologies. The platforms have embraced AI, automation, and integration with other HR tools.

AI and Automation

Globally, 88%^[20] of businesses use AI for the hiring process. 20%^[21] of organizations plan to start using an ATS with AI integration within 2027. Among all the organizations that use ATS, 79% utilize AI integration. In a survey, 30% of recruiters said that the use of AI enhances their ability to reduce bias during the hiring process.

Customizability and Integration with Other HR Tools

According to the current trend, ATS tools are becoming more customizable and compatible to integrate with other systems. For this reason, 25%^[22] of organizations are planning to implement an AI-driven ATS by 2027. Between 2023 and 2030, the global ATS market is expected to see an 8.3%^[23] compound annual growth rate. The growing demand for low-cost ATS on-premises infrastructure will drive market growth.

Conclusion

The current ATS market size is just above $15 billion, and it is expected to reach above $26 billion by 2030. More than 78% of users agree that ATS increases the quality of hiring for their company, while 60% of users say that ATS reduces the hiring cycle. With the growing competitiveness of the present job market, ATS has become an essential part of the recruitment process.

ATS automates tasks like resume screening, interview scheduling, job posting, candidate progress tracking, and report generation on data analytics. As it can share insights into candidate behavior and recruitment effectiveness, organizations can leverage ATS data to transform and optimize the hiring process.