Atmospheric Water Generator Market Size, Share & Industry Analysis, By Product Type (Cooling Condensation and Desiccant Based), By Application (Industrial, Commercial and Household), and Regional Forecast, 2024-2032

The global atmospheric water generator market size was valued at USD 1,940.8 million in 2019 and is projected to reach USD 6,214.9 million by 2027, exhibiting a CAGR of 18.1% during the forecast period. North America dominated the atmospheric water generator market with a market share of 11.22% in 2019. Moreover, the U.S. atmospheric water generator market is projected to reach USD 437.6 million by 2027, driven by growing adoption in off-grid and disaster-prone regions.

Atmospheric water generators (AWGs), also known as air to water systems, are capable of extracting water from the moist air or water vapor. Typically, a refrigerant or desiccant is used to obtain water. These systems are based on the principle of latent heat. The amount and rate of water production are dependent on the relative humidity and temperature of the surrounding air. Therefore, these systems are ideally suitable for regions with a relative humidity of more than 30%.

With the continuously increasing demand for potable water, atmospheric water generators are expected to play an important role in water-stressed regions during the forecast period. AWG offers an excellent and economical alternative to bottled water. The cost of the produced water is 50% less than that of bottled water. As ambient water is extracted from moist air, the air to water systems don’t require any water source. Moreover, these systems are compatible with the environment as they don’t expel any wastewater.  The efificnecy of Atmospheric water generators can be improved in condition having low humidity, by using an evaporative cooler having a brackish supply of water.

COVID-19 has Significantly Impacted AWG Production and Supply Chains

Due to the outbreak of COVID-19, various governments across each impacted country have declared lockdown to combat this pandemic. Countries such as China, the U.S., EU, which are considered hubs for the global supply chain have been severely hit by COVID-19. The imposition of the lockdown period has resulted in supply chain disruption, further impacting the market demand for AWG. Owing to a shortage of manpower, most of the manufacturers halted their production. This in turn significantly impacted the demand for AWG in the first quarter. Moreover, postponing pre-decided orders, and payment delays in shipped orders have significantly affected the working capital management. However, with lockdown lifting, operations are expected to resume in the aforementioned regions.

Global Atmospheric Water Generator Market Key Takeaways

Market Size & Forecast:

• 2019 Market Size: USD 1,940.8 million
• 2027 Forecast Market Size: USD 6,214.9 million
• CAGR: 18.1% from 2020–2027

Market Share:

• North America dominated the atmospheric water generator market with an 11.22% share in 2019, supported by growing adoption in off-grid and disaster-prone regions.
• By product type, cooling condensation AWGs held the largest market share in 2019 due to their cost-effectiveness, ease of installation, and efficiency in high temperature and high humidity environments.

Key Country Highlights:

• United States: The market is projected to reach USD 437.6 million by 2027, driven by increased deployment of AWGs in emergency preparedness, off-grid living, and military bases.
• China: Rising industrial activity and rapid urbanization are propelling demand for sustainable water solutions such as AWGs, especially in water-stressed provinces.
• India: Water scarcity in rural and semi-urban areas is accelerating the adoption of AWGs for both residential and commercial use, particularly in low-infrastructure zones.
• Middle East & Africa: Accounted for the largest market share in 2019, owing to extreme climate conditions and high dependence on desalination. GCC countries are leading in AWG adoption to ensure water security.
• Asia Pacific: Expected to register a CAGR of 21.1%, with Southeast Asian countries and China emerging as major consumers due to rising water scarcity and uneven access to potable water.

ATMOSPHERIC WATER GENERATOR MARKET TRENDS

Implementation of Smart Technologies is Creating a Positive Environment for the growth of the Market

Leading AWG manufacturers are incorporating the latest electronic devices to make their products more user-friendly. The implementation of smart Internet of Things-based technologies allows users to control the device parameters easily and to track down device performance over a period of time. Also, the use of solar panels to fulfill energy requirements is offering a complete green solution for water purification. Furthermore, growing technological advancement along with improved designs, materials, and energy-efficient systems contribute to making these generators more practical and accessible. Hence, such factors will provide lucrative opportunities for the market to grow positively in the upcoming years. North America witnessed a growth from USD 191.6 Million in 2018 to USD 217.8 Million in 2019.

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ATMOSPHERIC WATER GENERATOR MARKET GROWTH FACTORS

Increasing Water Scarcity Further Propels Demand for AWS, Augmenting Growth 

With increasing industrialization activities, a growing population, and rising socio-economic developments, the consumption of water has increased dramatically around the world. According to the United Nations World Water Development Report 2019, water consumption is expected to increase by 20 to 30% as compared to current water use. Such factors are responsible for unnecessary stress on freshwater resources. According to the World Health Organization, by 2050, more than half of the world's population is projected to reside in water-stressed areas. Air to water is a proven technology to extract water from humid air. Therefore, these systems are widely installed as a parallel source of clean water.

Additionally, the growing awareness of global water scarcity coupled with the rising need for alternative and sustainable water sources will surge the demand for AWGs during the forecast period.

RESTRAINING FACTORS

High Product Cost and Continuous Need for Electricity - Key Challenges

High product cost is restraining the growth of the AWG market especially in household and light commercial applications. Moreover, these systems consume a significant amount of electricity and require continuous supply to operate efficiently. This, in turn, increases the overall cost of the operation. However, with the implementation of the latest technologies, the cost and impact of these restraining factors are expected to become low during the forecast period.

ATMOSPHERIC WATER GENERATOR MARKET SEGMENTATION ANALYSIS

By Product Type Analysis

Cooling Condensation Segment Held Largest Share In The Global Market

Among product types, cooling condensation technology is highly adopted in the manufacturing of atmospheric water generators. In this product type, the refrigerant is circulated to cool the air temperature below the dew point. Then, the condensate is collected in a holding tank and further purified & filtered to reduce the risk of viruses, bacteria, and other contaminants. These systems are more economical in high temperature and high moisture conditions. Moreover, the cooling condensation AWGs are easy to install and maintain. Therefore, these systems are gaining more popularity in industrial, commercial, and household applications.

Desiccant-based AWGs on the other hand are gaining popularity due to their high efficiency in low-humidity environments. Desiccant-based AWGs use absorption technology, making them particularly effective in areas with challenging atmospheric conditions, where traditional condensation-based AWGs may be less efficient. This technology enables the generators to extract water from the air even in arid or low-humidity regions, expanding its applicability and contributing to market growth.

By Application Analysis

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Industrial Segment to Lead Market During The Forecast Period

Among applications, the industrial or large capacity segment contributed the largest atmospheric water generator market share in the global market in 2019. Manufacturing industries consume a large quantity of water, which, in turn, puts a burden on the existing surface & groundwater resources. According to the UN Water report, industries accounted for over 19% share of global water consumption and this share is expected to increase by 2030. Therefore, large-scale industries are adopting sustainable and economical water solutions such as AWG to meet water requirements.

• The industrial segment is expected to hold a 74.5% share in 2019.

REGIONAL INSIGHTS

Middle East & Africa accounted for the largest market share in 2019. Over the years, the Middle East and African countries have been facing water scarcity due to extreme weather conditions. These regions are heavily dependent on water bottles & desalination plants to meet their daily water requirements. Air to water system provides a more economical way to produce potable water. Hence, these systems are rapidly adopted in the region. Additionally, GCC is a key contributor to the growth of the market and is expected to maintain its leading position during the forecast period.

Asia Pacific is anticipated to register a high CAGR of 21.1% during the forecast period. This is because Southeast Asian countries are the prime consumers of atmospheric water generators, followed by China. Owing to the fastest-increasing water scarcity in Southeast Asian countries, these generators are gaining popularity for producing water. Moreover, in Asia Pacific potable water is not sufficiently distributed as compared to its growing population. Such factors are expected to create lucrative opportunities for the AWG market in Asia Pacific.

KEY INDUSTRY PLAYERS

Leading Players Are Introducing New Products to Extend their Product Offerings.

Leading market players are engaged in launching and marketing their products at water technology conferences globally. These conferences provide a valuable platform to companies and consumers for understanding the latest technological advancements in the water industry. For instance, GENAQ Technologies S.L., the Spanish air to water systems manufacturer is continuously engaged in representing its products in such conferences. In 2019, the company attended a Web Summit in Lisbon. GENAQ interacted with investors, distributors, and consumers around the world to maintain a strong foothold in the market competition.

Local AWG manufacturers are collaborating with distributors to expand their market reach and increase market revenues. Companies are creating awareness about the benefits and future need of air-to-water systems in regions with water scarcity issues through water campaigns. They are continuously engaged with consumers to improve the performance of their existing air to water models. Moreover, few companies are launching new air-to-water products to withstand the growing market competition.

LIST OF TOP ATMOSPHERIC WATER GENERATOR COMPANIES PROFILED:

• Drinkable Air Technologies (Florida, USA)
• Water Technologies International, Inc. (Florida, USA)
• Atmospheric Water Generator, LLC (Florida, USA)
• Zhongling Xinquan (Fujian) Air Drinking Water Technology Co., Ltd. (Fujian Province, China)
• Island Sky Corporation (Florida, USA)
• Dew Point Manufacturing (British Columbia, Canada)
• Eurosport Active World Corporation (Florida, USA)
• Water-Gen Ltd. (North Carolina, USA)
• PlanetsWater Ltd. (London, U.K.)
• WaterMaker India Pvt. Ltd. (Maharashtra, India)
• Atlantis Solar (New York, USA)
• GENAQ Technologies S.L. (Lucena, Spain)
• Clean Wave Products (USA)
• Eshara Water (Abu Dhabi, UAE)
• Akvosphere (West Bengal, India)

KEY INDUSTRY DEVELOPMENTS:

• December 2019 – GENAQ Technologies S.L. showcased its water from air generators in ‘The Big 5’, the largest building and construction event in the Middle East. The company promoted its S50 generator and provided brief information on air to water technologies.
• February 2019 – Bharat Electronics Limited launched its new atmospheric water generator. These products were launched with both static and mobile versions and with a capacity of 30, 100, 500, and 1000 liters per day.

REPORT COVERAGE

The global atmospheric water generator (AWG) market research report provides both qualitative & quantitative insights of the atmospheric water generator across the world. Quantitative insights include the global market size in terms of value (USD Million) across each segment, sub-segment, and region profiled in the scope of the study. Also, it provides market share analysis and growth rates of segments, sub-segments, and key counties across each region. Qualitative insight covers the elaborative analysis of market drivers, restraints, global industry growth opportunities, and key trends related to the market. The competitive landscape section covers detailed company profiles of the key players operating in the global market.

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