June 25, 2024
Ict

Atmospheric Water Generator Market Poised to Grow at a Robust Pace owing to Increasing Fresh Water Scarcity


The atmospheric water generator market has attracted significant interest in recent years owing to the growing freshwater scarcity around the globe. Atmospheric water generators, also known as air-to-water machines, utilize atmospheric humidity to produce fresh drinking water. They minimize the dependency on conventional water sources and help tackle water stress.

The global Atmospheric Water Generator Market is estimated to be valued at US$ 3.08 bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period of 2024 to 2031.

Atmospheric water generators work on the principle of condensation to extract water from humid ambient air. They capture water vapor present in the air through cooling processes like refrigeration or desiccant materials. The condensed water is then collected and undergo filtration and UV treatment before being safely used for drinking purposes. Their low maintenance and portability make them suitable for both residential and commercial settings. Atmospheric water generators are increasingly being installed in offices, homes, remote areas, hotels, and portable vehicles to deliver fresh water independent of traditional water infrastructure and terrestrial water sources.

Key Takeaways

Key players operating in the atmospheric water generator market are WaterMicronWorld, Dew Point Manufacturing, Watair Inc., Ambient Water, Saisons Technocom Pvt. Ltd., WaterMaker India Pvt. Ltd., Planets Water, Water Technologies International, Inc., Island Sky Corporation, Fujian Yuxin Electronic Co. Ltd., Eurosport Active World Corporation Technologies, Atlantis Solar, Air2Water LLC, Konia, and Ecoloblue, Inc. These players are focusing on new product launches and geographical expansions to solidify their presence.

The growing freshwater scarcity and rising awareness about water conservation present lucrative opportunities for atmospheric water generators. The market is anticipated to further bolster with supportive government initiatives and integration of advanced technologies like AI and IoT in water production.

Geographically, the Asia Pacific region dominates the global market and is estimated to continue its lead owing to rapid industrialization and urbanization. Meanwhile, regions like the Middle East and Africa are expected to offer emerging profitable prospects for market players because of severe water stress. Many developed nations are also adopting atmospheric water generation stimulated by changing climatic conditions.

Market drivers and restrain

The key driver for the atmospheric water generator market is increasing freshwater scarcity across major parts of the world due to factors like growing population, urbanization, water pollution, and climate change. According to statistics, over 1.1 billion people globally lack access to water and about 4 billion people experience severe water scarcity for at least 1 month annually. Atmospheric water generators help overcome this crisis to some extent.

However, high initial costs of setting up atmospheric water generation plants can negatively impact the market potential, especially in price-sensitive underdeveloped regions. Maintaining the efficiency of these systems also leads to additional operational expenses. Furthermore, low humidity levels in certain dry areas limit the viable water yields. Market players focus on reducing the costs through technological innovations and customizing products as per geographical conditions to address these challenges.

Segment Analysis
The residential atmospheric water generator (AWG) segment currently dominates the market owing to growing demand for potable drinking water and increasing health concerns among consumers regarding consumption of contaminated municipal water. Residential AWGs account for over 50% of the total AWG market share on the back of increasing sales of compact tabletop and household AWG systems. The growth of the residential segment is further aided by rising disposable incomes and growing awareness about the technology among home owners.

The commercial segment exhibits high growth potential over the forecast period driven by increasing installations of large capacity AWGs in offices, restaurants, hotels, hospitals and industrial facilities. Easy maintenance and reliable water generation throughout the year independent of municipal water supply renders commercial AWGs an attractive proposition. Advancing technologies are enabling commercial AWGs to produce higher volumes of water at low costs, making them a viable alternative to municipal water systems especially in water stressed regions.

Global Analysis

The global Atmospheric Water Generator Market is estimated to be valued at US$ 3.08 bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period of 2024 to 2031..

The Asia Pacific region currently dominates the global atmospheric water generator market with over 35% share led by countries such as India, China and Indonesia. Rising concerns over depleting groundwater levels and availability of fresh drinking water have accelerated the adoption of AWGs in the region. Presence of various international and domestic water generator manufacturers and availability of low cost raw materials and labor also support market growth.

North America exhibits high incremental growth and is expected to surpass Asia Pacific by value by 2028. Increasing privatization of water resources and prevalence of drought prone areas in the US and Canada have boosted installations of small to medium capacity AWG systems. Presence of major players and rising investments in R&D of advanced technologies also aids the North American market. Europe and Latin America are projected to witness steady growth led by factors such as increasing focus on water conservation and expanding construction sector.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it