The worldwide atmospheric water generator market stood around USD 920 million in 2015. It is estimated to grow at over 20% CAGR over the forecast period (2016-2024). The industry can reach about USD 5 billion by 2024. Depleting renewable water resources (like lakes, rivers, & ponds), scanty rains, and rising population will drive the industry in the coming eight years. Urbanization should also contribute to the market.
Increasing acknowledgment regarding the adverse effects of climatic changes is expected to add industry growth. This is nudging various governments to take keen interest in the adoption of atmospheric water generators (AWGs) for residential & commercial infrastructures.
Moreover, the adoption of AWGs in municipal agencies, banks, and educational institutes would boost market incomes. Development of large scale industries such as oil & gas, paper, and steel that produce high output can impel market revenues.
According to reports by the World Health Organization (WHO), over half the global population is affected by waterborne ailments. Regulatory initiatives and policies such as ‘Safe Drinking Water Act’ in the United States aim to make drinking water clean & available. These initiatives further the need for AWG systems, boosting the sales of AWG products.
Usage of pre-existing desalination methods and resourceful means of water acquirement directly from the nature should work out to be the biggest industry restraint. In addition to this; maintenance costs, financial investments, and power consumption are the key factors that influence buyers’ decisions, inhibiting market flow.
Lack of integration across the value exists due to manufacturers outsourcing equipment parts from providers. Multiple providers across the supply chain cause unnecessary snags during manufacturing procedures. Owing to the same, integration in value chain will aid industry sustenance.
Also, huge product costs along with vast energy consumption hamper market penetration, particularly across residential applications. Manufacturers are projected to develop novel technologies to lower the cost of products and attract commercial & residential users.
Conversely, higher efficiency and cost effectiveness of AWGs support industrial expansion. Adding to these, manufactures are investing in research & developments to penetrate residential and commercial sectors.
Some of the factors concerning AWG manufacturers are high ‘carbon footprint’ requirement. Coal-fueled electricity can contribute to large carbon footprints as compared to reverse osmosis units and desalination. Thus, the market is transitioning towards solar panels to reduce electrical costs. The AWG market is split into applications, products, and regions.
Applications encompass commercial, industrial, and residential. Residential dominated in 2015, earning over USD 14 billion. This trend is likely to continue till 2024. The segment will grow at about 15% CAGR in the near future.
Awareness about AWGs & their benefits and requirement for clean water across developing nations are projected to raise industry demand. Commercial applications may witness substantial growth at about 20% during the forecast period. Employment of AWGs in armed forces across France, India, Mexico, and the United States would drive industry expansion.
On the basis of products, the industry is fragmented into cooling condensation and wet desiccation. Cooling condensation AWGs focus on humid air and lower its temperature, turning it to dew. Wet desiccation, on the other hand, uses hygroscopic compounds to soak out the humidity from air. It then separates the clean water from the compound. To do so, these products adopt various substances; like brine, silica gel, and reactive lithium halides.
Cooling condensation occupied over 95% shares in 2015. It dominated the same year. The segment is anticipated to witness a CAGR of around 20% till 2024. Simpler mechanisms and higher water output are the key factors that push segment demand.
Lack of consumer awareness about wet desiccation AWGs can affect this segment. Moreover, they have a more complicated mechanism as compared to cooling condensation, hindering their growth during 2015 to 2024.
Wet desiccation generators are set to expand owing to the high energy consumption of cooling condensation, damaging the environment. They consume lesser power, thus propelling their demand.
R&D by manufacturers for newer soaking substances should open avenues for AWG products and players alike. Moreover, innovative technology to replace crystalline brine salts with liquid brine to lessen the humidity will increase the demand for wet desiccation products.
Industry regions comprise North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa (the MEA). Germany would experience over 25% gains till 2024. The European Commission, REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals), and other governmental agencies are likely to support the global market.
Asia Pacific dominated the worldwide industry in 2014, with over USD 400 million. China and India can majorly influence regional growth. Rapid urbanization and altering consumer lifestyles in Indonesia, India, and China are estimated to boost the need for AWGs in this region.
The demand for AWGs across India was little under USD 25 million in 2015. It is anticipated to rise at 20% CAGR over the forecast period. Erratic rainfalls and draughts across the nation will propel the demand for portable water, furthering AWG demand in the eight years ahead.
China generated over USD 430 million in 2015. Its fast changing lifestyles owing to robust urbanization could positively influence national adoption. This should drive its demand for AWGs in the near future. Demand for AWG products in the MEA was estimated at nearly USD 126 million in 2015. Regional demand can grow at a CAGR of about 20% till 2024.
Lack of portable and ground water resources is the key cause behind the promotion of AWGs in Gulf Cooperation Council (GCC) countries. These systems are largely used in workplaces; such as banks, municipal agencies, schools, and hospitals. Awareness about these systems and their advantages may raise their demand.
Key participants in the worldwide atmospheric water generator market are Dew Point Manufacturing, Watair Incorporated, Fujian Yuxin Electronic Company Limited, and WaterMicronWorld. Escalating demand for AWG devices, especially in draught affected regions, is anticipated to provide opportunities for new players.
More research in this field and further scope would augment the efficiency of products, thereby introducing avenues for industry players. However, efficiency-production issues would pose hindrances for existing and future participants.
Research Support Specialist, USA