by Atmospheric water generators produce potable water from humidity in the air. It functions by extracting water directly from the atmosphere by cooling down air below its dew point. The condensed water is then collected and filtered to make it safe for drinking. It helps provide access to clean drinking water in remote areas without conventional water sources and can help alleviate water stress in hot and arid regions.
The global atmospheric water generator market is estimated to be valued at US$ 4.06 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing water scarcity issues across the globe is estimated to be the major driver fueling growth of the atmospheric water generator market over the forecast period. According to the United Nations, around 3.6 billion people currently live in water-scarce areas. This number is expected to increase to around 5.7 billion people by 2050 as population and temperatures rise across the globe. Atmospheric water generators provide an innovative solution to address increasing freshwater demands especially in regions facing water stress. Growing water scarcity issues owing to climate change is thus expected to augment demand for atmospheric water generators over the coming years. Additionally, growing industrial applications of atmospheric water generators in power plants, manufacturing facilities etc. to meet non-potable water requirements is also expected to support market growth during the forecast period. However, high set up and operational costs associated with atmospheric water generators may hamper market growth to some extent over the forecast period.
SWOT Analysis
Strength: Atmospheric water generators convert humidity in the air into potable water providing an off-grid source of water. This makes them a sustainable solution for water scarcity. By using renewable energy sources like solar, they produce clean drinking water without any reliance on existing water infrastructure.
Weakness: The technology to extract water from air consumes significant amounts of energy limiting scalability. The volumes of water produced are relatively small making centralized drinking water solutions challenging. High initial capital costs and low production volumes could impact return on investment calculations.
Opportunity: Over 1 billion people worldwide face high to extreme water stress presenting a large addressable market for atmospheric water solutions. Applications include both residential and commercial sectors in arid regions with favorable humidity levels. Growing freshwater scarcity due to climate change and population growth is expected to drive demand.
Threats: Alternative decentralized water solutions like desalination and rainwater harvesting compete for the same off-grid applications. Dependence on weather conditions makes volumes unpredictable. Lack of standards and regulations governing air-extracted drinking water quality could slow market adoption.
Key Takeaways
The global atmospheric water generator market is expected to witness high growth over the forecast period driven by increasing freshwater scarcity worldwide.
Regional analysis indicates the Asia Pacific region is expected to be the fastest growing market for atmospheric water generators through 2030. Rising populations and economic development are increasing stress on limited natural water resources in countries like India and China. Pilot programs integrating the technology into residential complexes and commercial buildings could help address looming shortages.
Key players operating in the atmospheric water generator market are Exxon Mobil Corporation, Saudi Basic Industries Corporation, Royal Dutch Shell Plc., China Petroleum & Chemical Corporation, Chevron Phillips Chemical Company LLC, Total S.A., LyondellBasell Industries N.V., National Petrochemical Company, INEOS Group, and Dow Inc. among others. Strategic partnerships for deploying localized solutions and scaling production capacity will be critical for player growth strategies over the forecast period.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
