Atmospheric Water Generator (AWG) Market is Estimated to Witness High Growth Owing to Rising Concerns over Fresh Water Scarcity

Market Overview:

Atmospheric water generators are devices that extract water from humid ambient air. They contain desiccant materials that attract and absorb water vapor from the air and then condenses it into liquid water that is safe for drinking. These generators are compact in size and can produce from 5-30 liters of water daily, making them useful for homes and offices.

“Atmospheric Water Generator (AWG) market size was valued at US$ 326.71 million in 2022 and is expected to expand at a CAGR of 14.68% during the forecast period, reaching US$ 742.98 million by 2031.”

Market Dynamics:

Atmospheric water generators are gaining increased traction owing to the growing concerns over freshwater scarcity around the world. According to the United Nations, approximately 4 billion people experiencing severe water scarcity for at least 1 month annually. Additionally, rising temperatures due to global warming have led to increased evaporation from water bodies and decreasing water levels. This has fueled the need for alternative water sourcing methods. Atmospheric water generators provide a sustainable solution for freshwater requirements without relying on conventional water resources. Furthermore, technological advancements have made atmospheric water generators more efficient and economical. This has boosted their adoption across residential, commercial and industrial applications.

Water scarcity is a major driver for Atmospheric Water Generator market

The global atmospheric water generator market is primarily driven by increasing scarcity of freshwater resources around the world due to factors such as rising population, industrialization, urbanization, changing lifestyle and climate change. According to some studies, over 1.1 billion people currently live without access to water and another 1.6 billion people live in water-scarce regions of the world. Various parts of Asia, Africa, Middle East and Latin America are facing acute water shortages. Atmospheric water generators provide an alternative method of obtaining potable water directly from humid ambient air. With easy availability, low maintenance and independence from existing water distribution infrastructure, AWGs are being increasingly adopted in both residential and commercial sectors across water-stressed regions to fulfil their potable water needs.

Atmospheric Water Generator Market Taxonomy

On the basis of product type, atmospheric water generator is classified into:

• Cooling Condensation
• Wet Desiccation
• Others

On the basis of application, atmospheric water generator is classified into:

• Industrial
• Commercial
• Residential
• Others

On the basis of range, atmospheric water generator is classified into:

• 20L-80L
• 100L-250L
• 500L-3000L

Rising energy costs driving demand for energy-efficient AWG systems

Another major driver fueling the growth of atmospheric water generator market is the rising global energy costs. Production of water through conventional desalination or purification methods is an energy-intensive process. On the other hand, AWGs rely on mechanism of condensation to extract water from air without requiring huge amounts of energy. Several manufacturers are coming up with innovative AWG designs integrated with renewable energy sources like solar power in order to reduce overall operating costs. Such energy-efficient AWG systems optimized for specific climatic conditions are gaining widespread acceptance. With growing environmental consciousness, transition towards sustainable freshwater solutions like atmospheric water generation is expected to further accelerate in the coming years.

Regulations limiting availability of conventional water treatment chemicals restrain the market

Stringent environmental regulations limiting the use of certain conventional water treatment chemicals pose a key challenge restricting the growth of atmospheric water generator market. Many disinfection chemicals used in traditional water purification like chlorine have been linked to formation of harmful by-products. Growing health risks have forced regulatory bodies worldwide to ban or limit the application of such chemicals. This has compromised the effectiveness as well as affordability of prevailing water treatment methods. Lack of substitutes for banned chemicals makes it difficult for conventional systems to comply with evolving standards. Meanwhile, AWGs present an eco-friendly alternative free from usage of toxic purification aids. However, their high initial capital costs currently limit widespread adoption over cheaper conventional technologies.

Opportunity for packaged drinking water companies to utilize surplus AWG capacity

The rising demand for packaged drinking water across both developing and developed countries presents a major business opportunity for atmospheric water generator market players. Packaged water industry is one of the fastest growing beverage segments globally. However, seasonal and geographic variations in raw water availability constrain regular supplies for bottling plants. Excess or unused water generation capacity of AWGs installed at bottling facilities can be potentially utilized to overcome such raw material fluctuations throughout the year. This will help packaged water producers ensure continuity in operations as well as expand their portfolio into new markets. Leading AWG manufacturers are forming strategic partnerships with major packaged water brands to provide customized on-premise generation solutions.

Trend towards portable and commercial-scale AWGs with advanced features

A key trend observed in the Atmospheric Water Generator (AWG) market is the increasing demand for portable as well as large commercial-scale AWG systems integrated with advanced functionality. While traditional residential AWGs had limitations of low water yields, modern portable units are designed for enhanced mobility as well as higher outputs of 10-30 litres per day. Similarly, commercial AWGs for industrial applications are being developed with capacities ranging from 100s of litres to millions of litres annually. Advanced features like integrated renewable energy systems, water treatment and remote monitoring are also gaining traction. This shifts focus from basic water extraction towards customizable complete water generation packages for diverse high-volume applications. Continuous technology improvements emphasizing higher efficiencies, lower costs as well as smart water management will propel further growth of AWG market in future.