The global atmospheric water generator market size was worth USD 2,406.4 million in 2021. It is expected to reach USD 5,543.6 million by 2030, growing at a CAGR of 9.5% during the forecast period (2022–2030).
Atmospheric water generators are primarily used in industries and commercial buildings with high installation costs. The increased environmental awareness for environment-friendly practices in the industry is the cause behind the high demand for atmospheric water generators in industrial and commercial buildings. The said market is in its growing stage with a limited number of competitors present in the market. The increasing awareness of safe drinking water will likely boost the market over the forecasted period.
Freshwater is an essential resource for human survival and is used for various purposes besides drinking, including industrial, agriculture, and other household activities. The decreased water resources and the increasing population can be a huge threat to life on planet earth for humans and animals. The per capita water availability has significantly reduced during the past decade, and this is why now is the time when people are trying to conserve water. With the increased awareness about water conservation and the urge to get fresh water for daily needs, atmospheric water generators are proving to be a blessing for the people living in regions with water scarcity, thereby driving its demand.
Increasing technical advancements in atmospheric water generator technology enable manufacturers to develop atmospheric water generators with excellent efficiency and low environmental impact. Although the manufacturers are concerned about the high-carbon footprint and the requirement of high-power input, the atmospheric water generator market is not so behind, with new technologies evolving continuously. There are continuous improvements in the atmospheric water generators that are generating freshwater through various new techniques.
Government rules and regulations sometimes pose barriers to growth. However, the government is currently supporting the atmospheric water generator market as it will create an additional artificial water source to help people eliminate the freshwater crisis. Stringent government policies and regulations, including the Drinking Water Directive in the EU nations, Safe Drinking Water Act in the US, National Rural Drinking Water Program in India, and Drinking Water Quality Standards in Japan, are all intended to ensure the availability of safe potable water.
High power consumption of the atmospheric water generator leads to the emission of harmful greenhouse gases, posing a significant threat to the environment. Additionally, when these generators are powered by coal or other non-renewable energy sources, there are chances of high carbon footprints, contrary to other clean water generation units such as reverse osmosis and desalination plants.
Further, the need for high power also acts as a major restraint. The atmospheric water generator unit requires a continuous, high power supply to function properly and generate freshwater through the equipment. Additionally, it needs another power source to power the condenser and evaporator, where the air is cooled and condensed into water. Such high electricity consumption and inefficient design technology can impede the growth of the atmospheric water generator market.
The global atmospheric water generator market share is segmented by product and application.
Product-wise, the global atmospheric water generator market is categorized into Cooling Condensation and Wet Desiccation.
Cooling Condensation accounts for the maximum share and is expected to grow at a higher CAGR during the forecast period. The cooling condensation technique refers to dragging air from the atmosphere and cooling & condensing it to form water droplets. The atmospheric water generator has a condenser that generates freshwater from the atmospheric air. The cooling condensation technique is widely used as it is among the most demanded atmospheric water generator techniques. It is also readily available and can be installed at any location regardless of weather conditions.
Wet Desiccation also holds a prominent market share. The wet desiccation system is a technique used in the atmospheric water generator system that doesn't need a dehumidifier to create water droplets from the air sucked in. The dehumidifier needs a power source to function, which consumes a massive amount of electricity. Eliminating the dehumidifier reduces the power consumption to a large extent, making it more affordable. The wet desiccation system uses a brine solution instead of a dehumidifier, which contains various salts that collect moisture from the air and do the rest.
Application-wise, the global atmospheric water generator market is categorized as Industrial, Commercial, and Residential.
The Industrial segment acquires the highest share of the global market and is expected to grow at a higher CAGR during the forecast period. Industrial water generators are primarily used in industries and buildings that require an estimated water output of over 5000 gallons per day. The oil and gas industry, particularly in the Middle East, uses the desalinated water from the oceans to generate freshwater with this process as it proves to be the most cost-effective option compared to others.
The Commercial segment, including restaurants and theatres, introduced these units to dispense with water shortage issues. Moreover, these units are presented with an installed power source to generate ample power required on the spot at a decreased energy cost. Likewise, the rising number of undertakings connected with savvy urban communities is supposed to flood the market development over the estimated time frame. The atmospheric water generator market is expected to observe significant growth, with the rising interest from business structures and the military. Business atmospheric water generators, producing up to 5,000 gallons of water, are utilized in armed force headquarters. Subsequently, military faculty can approach clean and safe drinking water in any region they serve.
The Residential segment accounts for a decent market share. With the rising population, the need for water will also be rising, and there are chances of high water scarcity in some regions of the world. Managing the water crisis is a growing concern, especially in the water deficit areas like the Middle East, Southern Spain, Central Asia, Northern China, and some parts of India. A residential atmospheric water generator produces over 7 to 100 gallons of water per day, depending upon the technology used, the humidity levels, and other related things. Also, the energy consumed for a residential cause is not that high as compared to industrial or commercial use; it only consumes around 3.2 kWh of energy to produce one gallon of water, which hardly costs the users a dollar depending on the rates of electricity rates.
The global atmospheric water generator market is primarily divided into four regions, namely North America, Europe, Asia-Pacific, and the Middle East and Africa.
Asia-Pacific holds the most dominant position in the market and is expected to grow at a higher CAGR during the forecast period. The increase in the number of atmospheric water generator installations in the region can be associated with water scarcity and the depleting level of freshwater resources. Further, industrialization and the growing infrastructure activities are pivotal in the increased demand for atmospheric water generators. With the increase in the population, Asia-Pacific is expected to continue to be the most valued market for atmospheric water generators.
The Middle East and Africa is the second-largest region in the global atmospheric water generator market. It is expected to grow rapidly during the forecast period. The atmosphere must be feasible to have ample water generated from the atmospheric water generator, as the water generation depends on the surrounding atmosphere's temperature and humidity.
Europe also acquires a substantial share of the market. Europe has the most number of industries operating in the region, which is one of the reasons for the growth of these water generator systems, though in fewer numbers but still operating.
North America is the most developed region in the world, with developed countries like the US and Canada having a substantial market share of atmospheric water generators.
The major players in the global atmospheric water generator market are
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