Atmospheric Water Generator Market Size, Share & Trends Analysis Report By Product (Cooling Condensation, Wet Desiccation), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global atmospheric water generator market size was estimated at USD 2.29 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 9.0% from 2023 to 2030. The industry growth is expected to be driven by freshwater scarcity, and increasing technological investments followed by favorable government regulations. Frequent lockdown during the COVID-19 pandemic has resulted in increased demand for drinking water in camps for migrant workers, isolated labs for COVID testing, and areas with water supply disruption. The COVID-19 pandemic is expected to accelerate the demand for atmospheric water generators (AWGs) as countries are exploring independent, scalable, and resilient technology for water security.

The demand for atmospheric water generators in the U.S. is expected to grow post-COVID-19 on account of increased water requirements attributed to the rising awareness related to hygiene and the constant washing of hands. Moreover, growing investments of around USD 35 billion to strengthen its water infrastructure through its Drinking Water and Wastewater Infrastructure Act, passed in April 2021, is also expected to drive the market.

Rising water scarcity, depleting groundwater levels, global supply chain disruptions, and various government initiatives are some of the factors that are likely to boost the demand for atmospheric water generators. Moreover, policies conducive to establishing water infrastructure are anticipated to augment the demand for atmospheric water generators over the forecast period.

Stringent government policies and regulations, including the Drinking Water Directive in the EU nations, Safe Drinking Water Act in the U.S., and Drinking Water Quality Standards in Japan, are intended to ensure the availability of safe potable water. The aforementioned policies are expected to boost growth over the forecast period.

High capital and maintenance required for atmospheric water generators are the key concerns, especially for residential consumers. The market growth in residential applications is hindered by the low purchasing power of consumers, primarily across the Asia Pacific and the Middle East & Africa. As a result, researchers are continuously seeking new technologies that can reduce the manufacturing cost of the equipment.

Product Insights

The cooling desiccation product segment led this industry and accounted for 99.2% of the revenue share in 2022. Water scarcity issues resulting in drought conditions in various countries across the globe coupled with rising demand from industries and the commercial sector are expected to augment the segment growth over the forecast period.

Cooling condensation primarily utilizes electronic and electrical components for water generation. Growing industrial activities in the country such as Germany, the U.S., and China, coupled with the high-water output offered by the cooling condensation atmospheric water generators, are expected to have a positive impact on product demand over the forecast period.

The demand for wet desiccation is expected to grow at a CAGR of 7.9% from 2023 to 2030 in terms of revenue. Wet desiccation technology is comparatively new and is primarily used in army base camps and large-scale industries. The dehumidifier is absent in the wet desiccation technique, due to which energy expenditure is comparatively less as compared to cooling condensation.

Wet desiccation atmospheric water generators use brine solution containing salts that may result in corrosion. As governments have outlawed the use of these toxic inhibitors, the demand for wet desiccation-based atmospheric water generators is likely to grow at a slower rate. To reduce this, several inhibitors are required which have high toxicity levels.

Application Insights

The industrial application segment led the market and accounted for 74.0% of the revenue share in 2022. The demand for industrial-grade AWGs is expected to increase from bottling facilities for beverages, government or military facilities for water security, food growing, and processing facilities where water demand is more than 15,000 liters a day.

The demand for AWGs that need less maintenance and have a low environmental effect is increasing. Manufacturers such as SkyH2O are working on integrating technology for new water infrastructure projects to offer fresh potable water to water districts and major commercial and industrial water users, which is expected to complement the industrial growth.

The commercial application segment is projected to grow at a CAGR of 8.6% over the forecast period. Commercial AWGs are used in commercial buildings, such as hotels and theatres to ease water shortages. These units include an onboard power source, resulting in long-term power generation and lower energy costs. Furthermore, the growing number of smart city initiatives, particularly in developed countries, is likely to drive market expansion over the forecast period.

Communities throughout the world have begun to concentrate on modernizing water infrastructure to provide clean and safe drinking water for everybody. Funding by global organizations such as WHO and UNICEF is likely to accelerate market growth. However, the high initial cost of installation and operating expenses of AWGs are anticipated to hinder market growth.

Regional Insights

Asia Pacific led the market and accounted for 36.0% of global revenue share in 2022, on account of several factors such as water shortage and depleting freshwater supplies. Furthermore, rapid industrialization in the region, along with expanding infrastructural operations, is expected to boost product demand over the forecast period.

The North American region is anticipated to grow at a CAGR of 8.2% over the forecast period. Ideal climatic conditions concerning high relative humidity, and reducing freshwater reserves coupled with technological advancements are anticipated to bolster the industry growth.

The depletion of freshwater resources coupled with consecutive years of drought in Central & South America is expected to propel the demand for these products over the forecast period. The cooling condensation segment dominated the market owing to higher water generation output compared to wet desiccation AWG.

Growing urbanization in India coupled with changing consumer lifestyles is expected to increase the need for pure water, thereby propelling the product demand. The uncertainty associated with rainfall and rising drought occurrence in the country is expected to drive the demand for suitable water generation alternatives such as AWG units.

Key Companies & Market Share Insights

Rising research & development activities in AWG technology are likely to enable manufacturers to develop generators with excellent efficiency and low environmental impact. Companies such as Akvo Atmospheric Water Systems Pvt. Ltd., Ray Agua, and GENAQ Technologies S.L. have been able to develop innovative AWGs such as AKVO, AQUAIR, and GENAQ.

Several manufacturers are majorly engaged in manufacturing residential segment owing to the comparatively easier manufacturing process while the industrial AWG units are majorly manufactured only after receiving orders from end-users. Key players in the atmospheric water generator market are focusing on M&As and product launches. Some prominent players in the global atmospheric water generator market include:

• Akvo Atmospheric Water Systems Pvt. Ltd.

• Dew Point Manufacturing

• Ray Agua

• PlanetsWater

• Water Technologies International, Inc.

• SkyWater Air Water Machines

• Hendrx Water

• Atlantis Solar

• EcoloBlue, Inc.

• Air 2 Water Solutions

Atmospheric Water Generator Market Report Scope

Global Atmospheric Water Generator Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global atmospheric water generator market report based on product, application, and region:

• Product Outlook (Revenue, USD Million; 2018 - 2030)

  • Cooling condensation

  • Wet Desiccation

• Application Outlook (Revenue, USD Million; 2018 - 2030)

  • Industrial

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Finland

    • UK

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia