Talent Acquisition Software Market to Surpass USD 51.16 Billion by 2032, Owing to AI-Powered Recruitment and Digital Hiring Transformation | Research by SNS Insider

The Talent Acquisition Software AG Market is expanding as organizations adopt cloud and AI-driven hiring platforms to reduce time-to-hire and enhance candidate experience, with the U.S. segment growing from USD 6.89 billion in 2025E to USD 13.55 billion by 2032.

Austin, Dec. 21, 2025 (GLOBE NEWSWIRE) -- The global Talent Acquisition Software AG Market was valued at USD 25.69 billion in 2025E and is expected to reach USD 51.16 billion by 2032, growing at a CAGR of 9.10% over the forecast period.

The market for talent acquisition software is expanding as a result of increased enterprise digital transformation, cloud-based and AI-powered solution adoption, and the need for automated and effective hiring procedures.

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The U.S. Talent Acquisition Software AG Market was valued at USD 6.89 billion in 2025E and is expected to reach USD 13.55 billion by 2032, growing at a CAGR of 8.82% from 2026-2033. 

Due to increased use of cloud-based solutions, AI-driven recruiting, automated recruitment, and digital transformation, which promotes effective talent acquisition and better candidate experiences, the U.S. talent acquisition software market is growing.

Segmentation Analysis:

By Organization Size

Large Enterprises dominated with around 60% share in 2025 due to their large-scale recruitment needs, diverse global workforce, and strong budgets for advanced hiring platforms. SMEs are projected to grow the fastest from 2026 to 2033 as they increasingly adopt digital hiring tools to replace manual processes, reduce recruitment costs, and compete for skilled talent. 

By Industry Vertical

IT & Telecom dominated with around 31% share in 2025 due to high-volume technical hiring, rapid scaling requirements, and a strong need for automation-driven recruitment workflows. Healthcare is expected to grow the fastest from 2026 to 2033 owing to rising demand for medical professionals, staffing shortages, and strict compliance-based hiring needs.

By Functionality

Applicant Tracking System (ATS) dominated with around 35% share in 2025 as they serve as the core infrastructure for digitizing recruitment workflows, improving candidate tracking, and managing high application volumes efficiently. Candidate Relationship Management solutions are projected to grow the fastest from 2026 to 2033 as companies prioritize proactive talent engagement, employer branding, and long-term pipeline building.

By Pricing Model

Subscription-Based dominated with around 55% share in 2025 due to predictable pricing, easy scalability, and lower upfront costs, making them attractive for organizations with fluctuating hiring activity. Per-user models are expected to grow the fastest from 2026 to 2033 as companies look for flexible, usage-driven payment structures aligned with leaner HR teams.

By Deployment

Cloud dominated with approximately 71% market share in 2025 and is expected to grow the fastest from 2026 to 2033 due to its scalability, lower upfront costs, and rapid deployment capabilities. Growing digital transformation initiatives and rising demand for flexible recruitment workflows further reinforce cloud’s sustained leadership and rapid expansion.

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Regional Insights:

North America dominated the Talent Acquisition Software AG Market in 2025 with a revenue share of about 38% due to early adoption of advanced HR technologies, presence of major software vendors, and high investments in digital recruitment solutions. Asia Pacific is expected to grow at the fastest CAGR of about 10.81% from 2026 to 2033 due to rapid digital transformation, increasing startup activity, and rising demand for skilled talent across emerging economies. 

Increasing Demand for Automated and Efficient Recruitment Processes Across Enterprises Drive Growth Globally

Organizations looking for automated recruitment workflows are increasing the use of talent acquisition software. These systems provide applicant monitoring, AI-driven screening, and analytics-based decision-making, while manual hiring procedures are laborious and error-prone. Businesses can lower operating costs while swiftly finding, interacting with, and hiring eligible applicants. Adoption is further fueled by scalability across international organizations and integration with HR systems. Businesses of all sizes are being encouraged to make significant investments in these software solutions by the emphasis on enhancing the candidate experience, adhering to regulations, and cutting down on time-to-hire.

Key Companies:

• Oracle Corporation
• SAP SE
• Workday, Inc.
• Recruit Holdings (Indeed, Glassdoor)
• iCIMS, Inc.
• ADP LLC
• Cornerstone OnDemand, Inc.
• Greenhouse Software AG , Inc.
• Jobvite, Inc.
• SmartRecruiters, Inc.
• Lever, Inc.
• IBM Corporation (Kenexa / Watson Talent)
• ClearCompany HRM Inc.
• HireVue, Inc.
• PeopleFluent, Inc.
• Cegid Group SA
• BambooHR LLC
• UKG (Ultimate Kronos Group)
• Zoho Corporation (Zoho Recruit)
• Entelo, Inc.

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Recent Developments:

2025: SAP completed its acquisition of SmartRecruiters, integrating the platform into SuccessFactors to streamline AI-enabled recruiting in a unified hiring system. 

2025: Workday and Randstad partnered to combine Workday’s AI Recruiting Agent with Randstad ’s global talent network to accelerate candidate sourcing and hiring velocity.

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