Atmospheric Water Generator Market Size Report By Product (Cooling Condensation, Wet Desiccation), By Application (Industrial, Commercial), By Region (North America, APAC), And Segment Forecasts, 2022 - 2030

Report Overview

The global atmospheric water generator market size was valued at USD 2.15 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 9.0% from 2022 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 resulted in an increased demand for drinking water in places like camps for migrant workers, isolated labs for COVID-19 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 AWGs in the U.S. is expected to grow post-pandemic, on account of increased water requirements attributed to the rising awareness related to hygiene and constant washing of hands. Moreover, an investment of around USD 35 billion to strengthen water infrastructure in the U.S. through its Drinking Water and Wastewater Infrastructure Act, passed in April 2021, is also expected to drive the market in the country. 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 equipment demand. 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 the growth over the forecast period. High capital and maintenance required for AWGs 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 regions. 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 the global market and accounted for the largest share of more than 99.00% of the overall revenue in 2021. Water scarcity issues resulting in drought conditions in various countries across the globe coupled with the rising demand from various industries and commercial sectors are expected to augment the segment growth over the forecast period. Cooling condensation primarily utilizes electronic and electrical components for water generation. The growing industrial activities in countries, such as Germany, the U.S., and China, coupled with the high-water output offered by the cooling condensation AWGs, are expected to have a positive impact on the equipment demand over the forecast period.

In terms of revenue, the demand for wet desiccation is expected to grow at a steady CAGR from 2022 to 2030. Wet desiccation technology is comparatively new and is used in army base camps and large-scale industries. The dehumidifier is absent in the wet desiccation technique, due to which, energy expenditure is lesser 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 AWGs is likely to grow at a slower rate.

Application Insights

The industrial application segment led the market and accounted for the maximum share of more than 73.5% of the global revenue in 2021. 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 atmospheric water generators 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 & industrial water users, which is expected to complement the segment 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 to everybody. Funding by global organizations, such as the WHO and UNICEF, is likely to accelerate the market growth. However, the high initial cost of installation and operating expenses of atmospheric water generators are anticipated to hinder the market growth.

Regional Insights

Asia Pacific led the market and accounted for 35.7% of global revenue share in 2021 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 the product demand over the forecast period. Growing urbanization in India coupled with changing consumer lifestyles is expected to increase the need for pure water, thereby propelling the product demand in the regional market.

The uncertainty associated with rainfall and rising drought occurrence in the country is also expected to drive the demand for suitable water generation alternatives, such as AWG units. The North America region is anticipated to grow at a significant CAGR over the forecast period. Ideal climatic conditions concerning high relative humidity, 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.

Key Companies & Market Share Insights

Rising research & development activities in AWG technology are likely to enable manufacturers to develop generators with increased efficiency and reduced environmental impact. Companies, such as Akvo Atmospheric Water Systems Pvt. Ltd. and Ray Agua, and GENAQ Technologies S.L., have been able to develop innovative AWGs, such as AKVO, AQUAIR, and GENAQ. Several manufacturers are engaged in manufacturing products for the residential segment owing to the comparatively easier production process. Moreover, the industrial AWG units are majorly manufactured only after receiving orders from end-users. Some prominent players in the 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

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 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, 2017 - 2030)

  • Cooling condensation

  • Wet Desiccation

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Industrial

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Million, 2017 - 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