Atmospheric Water Generator Market is Estimated to Witness High Growth Owing to Growing Demand for Fresh Water

The Atmospheric Water Generator Market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

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.

Market Overview:

Atmospheric water generators utilize air humidity to produce fresh and clean drinking water suitable for direct consumption. These systems capitalize on the fact that air always contains a certain amount of water in vapour form.

Market Dynamics:

The global atmospheric water generator market is expected to witness significant growth, owing to growing demand for fresh water and increasing scarcity of potable water. Atmospheric water generators provide an alternative decentralized source of fresh water and help address the issue of water scarcity in many parts of the world. In addition, rising global temperatures due to climate change have led to higher atmospheric moisture levels, thereby improving the efficiency of atmospheric water generators in extracting water from air. This, coupled with various technological advancements like the use of new hygroscopic materials and air filters, is anticipated to boost the market during the forecast period.

Major driver: Increasing occurrence of drought conditions globally is boosting demand for atmospheric water generators

The threat of water scarcity is looming large across many parts of the world due to factors like rapid population growth, increasing urbanization, and climate change induced drought. According to reports by organizations like UNICEF and World Resources Institute, over 1.2 billion people currently live in areas facing water scarcity globally and the number is projected to increase to over 1.8 billion by 2025. Atmospheric water generators are emerging as a viable solution to supplement existing water sources in such drought impacted regions. They help extract water directly from ambient air, thereby providing an alternative means of freshwater availability especially in remote areas not connected to centralized water supplies. The growing awareness about atmospheric water generation technology and its self-sufficient nature is fueling its adoption.

Another major driver: Rising investment by governments and private entities to tackle water shortage through innovative solutions

Governments across both developed and developing nations are committing increased funds towards developing localized and decentralized water harvesting methods to overcome water scarcity challenges. For instance, the Indian government's Jal Jeevan Mission aims to provide piped water supply to all rural households by 2024 with a budget outlay of 3.5 trillion Indian rupees. Similarly, private water technology companies are ramping up R&D activities and production capacities of atmospheric water generators to tap into this growing public sector demand. The integration of advanced materials and energy efficient designs is making the technology more commercially viable. Furthermore, favorable governmental policies and incentives in some countries for adoption of renewable water sources are positively impacting the atmospheric water generator industry expansion.

Major restrain: High initial setup and operational costs hamper widespread adoption

While atmospheric water generators offer a sustainable solution for freshwater generation, their high capital expenses for initial setup and installation continue to pose a notable challenge restricting their broader penetration. The advanced components, power requirements, and need for regular filter replacements drive up overall operational costs as well. Especially in price sensitive developing markets, the solution remains unaffordable for low-income communities without financing options or subsidies. Additionally, these technologies may not be suitable for all climatic conditions globally due to variation in humidity levels. For economically viable operations, atmospheric water generators require a minimum humidity level of around 40-50% which limits their applicability in extremely arid regions. These costrelated factors restrain faster industry growth trajectory to some extent currently.

Major opportunity: Integration with existing water treatment plants opens up new application areas

Atmospheric water generation technology is gaining recognition for its compatibility with existing centralized water treatment facilities. Leading manufacturers are developing modular systems that can be easily installed at water treatment plants to supplement their production capacities especially during peak demand periods. This opens up new growth avenues for atmospheric water generator adoption across municipal, residential, and commercial sectors connected to urban water infrastructure. Additionally, integration with desalination plants helps reduce overall energy consumption and lower freshwater production costs. With the global desalination market expected to reach $40 billion by 2023, it presents a massive opportunity for atmospheric water generation systems serving as pre-treatment modules. Their deployment asindependent water sourcing units in remote areas without piped networks also has strong untapped potential.

Major trend: Advent of next-generation solar powered atmospheric water generators

A key atmospheric water generator market trend gaining momentum is the integration of solar photovoltaic systems with advanced atmospheric water generators. This allows for independent, off-grid operations without external power requirements. Leading companies are developing highly efficient solar powered units capable of extracting upto 30–40 liters of water per day even in arid climates. The convenience of setup and "plug and play" operations make these systems ideal for temporary relief camps, community centers, schools, tourist spots, construction sites etc. Furthermore, their modular designs allow for scalable configurations as per local water needs. With declining solar energy costs and evolving nanotechnologies enabling improved humidity harvesting, solar powered atmospheric water generators are expected to revolutionize access to freshwater globally especially in remote regions not served by conventional supply networks. Their acceptance will further accelerate industry expansion opportunities.