Atmospheric Water Generator Market Size, Share & Trends Analysis Report By Product (Cooling Condensation, Wet Desiccation), By Application (Industrial, Commercial), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global atmospheric water generator market size was valued at USD 2.1 billion in 2019 and is expected to grow at a compounded annual growth rate (CAGR) of 19.5% from 2020 to 2027. Declining freshwater levels and depleting water resources along with rapid infrastructure development are anticipated to boost the demand for freshwater, which, in turn, is expected to augment the demand for atmospheric water generators over the forecast period. Atmospheric water generator (AWG) requirements are formulated primarily on the basis of water output. In addition, performance efficiency, capital investment, and maintenance cost are considered while making a decision for machine installation. Moreover, the cost offered by various manufacturers varies depending on the application type, quality, and efficiency by the environment.

The U.S. dominated the North America market for atmospheric water generator in 2019 on account of the robust demand for atmospheric water generator units from the industrial sector. The country is witnessing a climatic change, resulting in droughts in some parts of the U.S., which is expected to drive the product demand over the forecast period. Cooling condensation was the preferred type of atmospheric water generator in the U.S. owing to its high efficiency and easy availability.

Atmospheric water generators are gaining importance at various workplaces including banks, municipal agencies, schools, and hospitals owing to high purity water offered by these systems. Increasing consumer awareness about the benefits offered by atmospheric water generators is expected to propel their demand over the forecast period.

Increasing R&D activities in AWG technology are anticipated to enable manufacturers to develop AWG units having higher efficiency and low environmental impact. The main factors concerning manufacturers are high carbon footprint and high power requirement. New product development initiatives taken by numerous manufacturers now integrate on-board power generation units, including wind turbines and solar panels.

The global market is in its nascent stage, with a limited number of manufacturers operating in the market. Growing awareness towards safe drinking water among consumers in various regions is likely to boost its demand over the forecast period. However, high equipment costs, coupled with high operating costs, has resulted in a limited number of buyers.

Product Insights

Cooling condensation led the market and accounted for a 98.9% share of the global revenue in 2019. Cooling condensation is the most widely used technique due to large-scale installations in various industries and residential and commercial buildings. Improving technology, coupled with the growing demand for cooling condensation atmospheric water generators in water deficit areas, is expected to propel market growth over the forecast period.

Cooling condensation atmospheric water generators include four major components, including the dehumidifier, compressor, condenser, and evaporator. In this process, the dehumidifier absorbs moisture present in the air which is then circulated through the condenser and evaporator by a compressor. As a result, the air temperature is reduced to its dew point, thereby causing the air to condense into water.

The wet desiccation product segment, in terms of revenue, is anticipated to register a CAGR of 17.8% in the AWG market over the forecast period. Lack of consumer awareness about wet desiccation AWG coupled with a complex mechanism is expected to limit its adoption. However, technological up-gradation related to the replacement of crystalline brine salt with liquid brine to enhance the humidity extraction from the air is expected to augment its demand over the coming years.

Wet desiccation involves a process where a brine solution is exposed to humid air, responsible for absorbing humidity. This solution then reaches a regenerator, which absorbs the water vapor from the solution. Natural convection of water vapor causes it to cool, thus producing water. In this process, the dehumidification process is carried out without direct expenditure of energy. However, the salts used to improve the efficiency of the system increase the overall system cost.

Application Insights

Industrial led the market and accounted for 76.3% of the global revenue share in 2019. Water plays a crucial role across several industries including power generation, pulp and paper, mining, textiles, pharmaceutical drugs, and oil exploration. Industrial atmospheric water generators are primarily employed in buildings and industries requiring water output of more than 5,000 gallons per day.

Industrial grade atmospheric water generators are primarily used in water vending machines, bottling facilities for beverages, government or military facilities for water security, food processing facilities, communities having contaminated groundwater, and industrial and commercial facilities with critical water needs. Rapid industrialization, most notably in developing countries, is expected to augment the product demand in the industrial sector, thereby benefitting market growth.

The commercial application segment, in terms of volume, is anticipated to witness a CAGR of 19.2% from 2020 to 2027 owing to increasing demand for atmospheric water generators from commercial buildings. Commercial buildings, including hotels and theaters, install these units to eliminate water scarcity issues. Furthermore, these units are installed with an onboard power source resulting in sustainable power generation and reduced energy cost.

Factors including rapid urbanization coupled with a growing population and favorable government policies for increasing housing facilities is anticipated to have a positive impact on the demand for atmospheric water generators in the residential application segment. Moreover, consecutive years of drought and depleting freshwater resources, most notably in the Middle East and Asia Pacific, are expected to propel the demand for residential AWGs over the forecast period.

Regional Insights

Asia Pacific dominated the market and accounted for 35.0% share of global revenue in 2019, on account of the growing number of atmospheric water generator installations in the region due to water scarcity and depleting freshwater resources. Moreover, rising industrialization, coupled with growing infrastructure activities in the region, is anticipated to augment product demand over the forecast period.

The product demand in Europe is anticipated to reach 14,078 units by 2027. The strong economic growth associated with rising industrial production is expected to augment water requirement, thereby propelling the demand for industrial atmospheric water generator units. In addition, an increasing number of residential atmospheric water generator installations owing to drought concerns are expected to drive the market in the region.

The Middle Eastern countries have dry and hot air, which is unsuitable for atmospheric water generators. However, the region has high humidity levels during evening and night, which can be used to produce a significant amount of water from these units. These attributes, coupled with the increasing demand for industrial-grade atmospheric water generators in the army base camps, are expected to stimulate the regional market growth over the forecast period.

Ideal climatic conditions concerning high relative humidity coupled with the rapid reduction of freshwater reserves in North America are expected to propel market growth. Technological advancements related to the superior performance of atmospheric water generator units, in terms of high-quality water generation, are anticipated to bolster market growth in the region over the forecast period.

Key Companies & Market Share Insights

The market witnesses presence of a diversified array of large and small scale manufacturers resulting in a significant level of concentration in the global market. The competition in the market is projected to be intense and is characterized by the demand for advanced and reliable atmospheric water generator units. Rising demand for atmospheric water generators, particularly in regions facing water shortage is expected to foresee opportunities for new market players over the forecast period. Moreover, the research scope focused on increasing the overall product efficiency is anticipated to open new avenues for market players over the coming years. Some of the prominent players in the atmospheric water generator (AWG) market include:

• Akvo Atmospheric Water Systems Pvt. Ltd.

• Dew Point Manufacturing

• Saisons Trade & Industry Private Limited

• WaterMaker India Pvt. Ltd.

• PlanetsWater

• Water Technologies International, Inc. (WTII)

• SkyWater Air Water Machines

• Drinkable Air

• Hendrx Water

• Energy and Water Development Corp. (EAWC)

• Atlantis Solar

• GENAQ Technologies S.L.

• Air2Water LLC

• EcoloBlue, Inc.

• Watergen

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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global atmospheric water generator  market on the basis of product, application, and region:

• Product Outlook (Volume, Units; Revenue, USD Million, 2016 - 2027)

  • Cooling Condensation

  • Wet Desiccation

• Application Outlook (Volume, Units; Revenue, USD Million, 2016 - 2027)

  • Industrial

  • Commercial

  • Residential

• Regional Outlook (Volume, Units; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE