"Increasing AWG installations in industrial applications is expected to drive the industry growth"
The global atmospheric water generator (AWG) market size was USD 918.9 Million in 2015 and is expected to witness growth at a CAGR of 20.1% over the forecast period. Increasing demand for product in large scale industries including paper, oil & gas, and steel is expected to have a positive impact on the industry growth. Technological advancements in the product field which offers high water output are expected to have a positive impact on the industry growth over the forecast period.
The cost of machines offered by various manufacturers varies depending upon the quality, application type, and product efficiency. Most of the products available in the market require substantial electricity which could be infeasible at some places, which is expected to restrain industry growth over the forecast period. However, innovation in the product field to offer on-board power supply such as solar panels are anticipated to open new avenues for the growth over the next eight years.
Integration across the value is absently owing to manufacturers outsource the machine parts from various component suppliers. A large number of suppliers in the supply chain may pose a threat leading to unwanted hold-up during the manufacturing process. As a result, integration across the value chain is expected to be a key to sustainability over the forecast period. High product cost coupled with high energy consumption limits market penetration, particularly in the residential application. Manufacturers are likely to come up with new technologies and manufacturing process to reduce overall product cost in order to tap attention from residential and commercial users.
U.A.E atmospheric water generator market volume, by application, 2013 - 2024 (Units)
"Residential segment was the largest application segment for AWG 2015 owing to high product installations in Latin America"
Residential segment dominated the market over the past few years in terms of volume and this trend is likely to continue over the projected period. The demand for these machines in the residential application was valued over USD 14 million in 2015 and is expected to grow at CAGR of over 14% from 2016 to 2024.
Rising consumer awareness and increasing demand for pure water particularly in developing economies including India and China have resulted in increased demand for the product. However, a high capital cost which lies between USD 900-2000 with a potential to produce water about 30-150 liters/day is expected to be a key concern for the buyers from residential applications.
Commercial application segment is expected to witness highest growth, growing at a CAGR of over 19% from 2016 to 2024. These products are deployed by armed forces from various countries including the U.S, India, Mexico and France. Various characteristics offered by the product such as easy transport and high purity are expected to propel its demand in military and commercial applications.
"Cooling condensation type AWG dominated the market owing to its high output"
Cooling condensation AWG is the most widely used type of the product and accounted for over 95% of the overall share in 2015. Technological advancements related to reducing power and lower cost is likely to augment growth over the forecast period. Higher output offered by cooling condensation AWG machines as compared to wet desiccation type AWGs is expected to offer the product a competitive advantage over the forecast period.
Lack of consumer awareness related to wet desiccation AWG coupled with complicated mechanism is likely to limit growth over the forecast period. However, technological innovation to replace crystalline brine salt with liquid brine to improve humidity extraction from the air is anticipated to increase demand over the next eight years.
"Middle East & Africa is expected to be a key market for AWG owing high end-user demand from industrial and commercial segment"
The demand for the machines in MEA was valued over USD 125 million in 2015 and is expected to grow at a CAGR of over 18% from 2016 to 2024. Lack of ground water resources is one of the key reasons promoting the demand for AWG across GCC countries. These machines are gaining importance in the Middle East at various workplaces such as municipal agencies, banks, hospitals, and schools owing to high purity offered by these systems.
Rising consumer awareness regarding benefits offered by these machines is expected to propel demand. The output offered by the machines primarily depends on upon humidity and temperature of the surrounding atmosphere which directly affects the performance efficiency of the system. The GCC countries have hot and dry air which is unsuitable for AWG, however humidity levels in these regions are substantially high during the evening and night hours, during which production is significant. As a result, demand for AWG is expected to grow over the projected period.
"R&D to increase product efficiency and reduce cost is expected to open new avenues for market players"
Rising demand for AWG particularly in deficit regions is expected to foresee opportunities for new market players. However, issues related to generating efficiency is likely to pose a threat for both current market players as well as new entrants. However, research scope to increase product efficiency is expected to open new avenues for market Players.
The key players in the industry are WaterMicronWorld, Fujian Yuxin Electronic Co., Ltd., Dew Point Manufacturing, Watair Inc., Ambient Water, Dew Point Manufacturing, Planets Water, Konia Saisons, Technocom Pvt. Ltd., Air2Water LLC, Water Technologies International, Inc., WaterMaker India Pvt. Ltd., Eurosport Active World Corporation Technologies, Island Sky Corporation, Atlantis Solar, and Ecoloblue, Inc.
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