Atmospheric Water Generation Systems (AWG) Market Size, Share, By Product Type (Passive AWG Systems, and Active AWG Systems), By End-User (Residential, Commercial, Industrial, and Government) and By Region - Trends, Analysis and Forecast till 2034

Atmospheric water generation systems (AWG) market size was valued at USD 2.87 Billion in 2024 and is expected to reach USD 6.71 Billion by 2034, growing at a CAGR of 9.8%

AWG systems derive potable water from the moisture available in the air. In recent years, AWG technology has been attracting growing interest as a sustainable solution to alleviate global water shortages. These systems have become a realistic and vital alternative to traditional water sources in regions where water is already short or access to clean water is limited. AWG markets are driven by an increasing demand for clean and reliable water supplies, especially from arid and semi-arid regions. Against the backdrop of increasing populations and urbanization globally, the pressure on water resources thus turns incisive. Against such a backdrop, the AWG systems are among the bright prospects in bridging these ever-increasing demands while lessening the environmental footprint.

Even with improvements in AWG technology over the years, massive energy consumption, cost-effectiveness, and scalability remain significant problems. If these issues can be overcome, then much more confidence will be expressed in the more substantial application of AWG systems into the mainstream water supply infrastructure. Despite the challenges, the AWG market will expand with technological innovation, government support, and enhanced awareness about the requirement for sustainable solutions in water. More efficient, more affordable, and more scalable, AWG systems are better positioned to transform how humanity shall access and manage its water resources in times to come.

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Key Drivers of Target Market:

Increasing Water Scarcity

• The rapid growth of the global population, urbanization, and climate change are some of the causative agents for an impending water crisis in many regions. This has been exacerbated by unsustainable practices relating to extraction, pollution, and the impacts of climate change in the form of droughts and floods. Many communities and industries already suffer from a lack of adequate water; huge economic and social implications result. Therefore, AWG systems can guarantee an answer to the search for water in areas where the traditional sources have been limited or nonexistent, thus availing a close and continuous water source.

Rising Energy Costs

• With the ever-rising energy costs, energy-efficient technologies receive more attention. The AWG systems, in particular, offer very low-energy solutions for extracting water. For instance, passive systems utilize natural processes such as condensation and evaporation to remove water from the atmosphere. This means that they use a very minimal quantity of energy input and are, therefore, more sustainable and economical than active systems, which rely so much upon mechanical processes to obtain water. In the case of active systems, technological advancement has improved their energy efficiency.

Restrains:

High Initial Investment

• While cost saving, in the long run, from the reduced reliance on municipal water supplies and the possibility of energy saving justifies the initial investment, one of the significant difficulties to the wide diffusion of the AWG systems in the world is represented by the high upfront investment for buying and installing the equipment. This can become an unsurmountable barrier against people and businesses with a limited budget. The cost of AWG systems has dropped drastically in recent years due to advancing technology and optimizing manufacturing processes. Equally important is that financing options are available regarding grants by the government, loans, and tax incentives to share this substantial upfront cost. Any company or individual can determine—to a reasonable extent—if the investment in the AWG system is worth it by weighing long-term benefits against financing options.

Opportunities:

Expanding Applications

• AWG systems could contribute to emergency response in natural disasters or humanitarian crises by bringing vital water supplies to affected populations. This may reduce suffering and foster recovery efforts. Additionally, AWG systems can be applied in projects aimed at sustainable development, such as off-grid communities or projects on renewable energy. Systems of AWG that provide reliable and continuous availability of water would significantly improve life quality and foster economic development in communities lacking these. To sum up, the expansion of AWG applications is driving growth in the market and proves the potential of these systems to meet a broad and diverse range of challenges associated with water demand.

The market is segmented based on Product Type, End-User and Region.

By Product Type:

• Passive AWG systems: utilize natural processes such as condensation and evaporation in extracting water from the air. Therefore, these machines require minimal energy input and find small-scale applications—probably making drinking water available to individuals or households. Usually, condensation principles are the basis for most passive AWG systems. It involves cooling the air to its dew point, which causes the water vapor to condense into liquid water. The condensed water can then be collected and used. In its most straightforward configuration, passive AWG systems can consist of just a metal container that is exposed to the elements.
• Active AWG Systems: In active AWG systems, mechanical processes like dehumidifiers or refrigeration units extract water from the atmosphere. They require more energy input than passive systems but can deliver bigger quantities. The active AWG systems find applications in commercial and industrial uses where a continuous and reliable water supply is requisite. On the other hand, active AWG systems use mechanical processes to extract water from the atmosphere. This is achieved either through dehumidifying air, resulting in moisture removal, or through a refrigeration unit that cools air to its dew point. Most active AWG systems are relatively larger and more complicated compared to the passive ones, requiring a source of electricity to power their operations. However, they produce larger volumes of water and are more reliable than the passive systems. Active AWG systems are usually installed for commercial and industrial uses, especially where a continuous water supply is required. They are also deployed as emergency solutions in cases of natural disasters or other far-flung places where access to water is very limited or unavailable.

By End-User:

• Residential: The AWG systems may offer a reliable and convenient water supply for residential houses. Their application may also solve the problem of poor-quality water or lack of municipal supply. Systems can be implemented aggressively to decrease unhealthy dependence on expensive bottled water, which is disastrous for the environment.
• Commercial: Commercial applications of AWG systems include hotels, restaurants, offices, and retail stores. A commercial facility often requires a regular and uniform water supply, and hence, all these can benefit from the use of an atmospheric water generator. It can also help control the expenses on water purification and treatment.
• Industrial: All industrial processes, from manufacturing to food processing and pharmaceuticals, require round-the-clock water availability for various requirements, starting from cleaning and sanitation to the process itself. AWG systems can ensure that the concerned units in such industries get a fresh water supply even in areas of scarcity.
• Government: Governments can make these purchases for emergencies or to get water to remote parts of their countries. Governments might use the systems as immediate relief in places with a disaster or provide drinking water to remote areas without clean water or in war zones. On another note, governments can use AWG systems to save taxpayers' money and reduce governments' dependence on municipal water supplies, particularly for areas where water is limited or threatened. Understanding these segments would enable AWG manufacturers to customize products and services to specific needs, fostering further market growth.

Regional Insights

• North America: Most AWG slots have their main technology companies and research institutions in North America. Moreover, the advanced water infrastructure in both the United States and Canada has also culminated in millions of investments in water technologies, thereby encouraging innovation in the area and actual implementation of the AWG system. Other factors in the region include drought and water pollution, boosting the adoption of AWG systems.
• Asia Pacific: Another significant region in the AWG market is the Asia-Pacific, which is driven by the high rate of urbanization, industrialization, and water scarcity. In countries like China, India, and Japan, heavy investments are being made in water infrastructure and technology, including AWG systems. The following is one example; when the available population is massive, and the economy is growing, there will be an immense need for snow in the water resources, and, therefore, AWG would turn out to be one of the solutions utilized to overcome the shortages in the water.
• Europe: The market for AWG systems is mature. The prime focus will be on sustainability and environmental protection. Countries like Germany, France, and the United Kingdom have driven the development and deployment of AWG technologies. Those countries recognize the need for a commitment to reducing water use, which sustains demand for those technologies in the region.
• Latin America: It is a new and growing market for AWG systems, given the increasing water scarcity and the quest for sustainable water management solutions in Latin America. Brazil and Mexico, to name a few, will soon suffer from such crises ignited by climate change and population growth, and therefore, the answer will be AWG. However, this region may have some setbacks, such as infrastructure bottlenecking and economic unrepair.
• Middle East and Africa: Large areas of both the Middle East and Africa have exhibited relatively high water scarcity, making regions in need of this kind of answer fertile for AWG system applications. Phase one: Countries such as Saudi Arabia and the United Arab Emirates have already invested in water infrastructure and technology, including AWG systems. High energy costs and access to electricity that is only sometimes available are potential problems that might be experienced in implementing feasible AWG systems in this area.

Atmospheric Water Generation Systems (AWG) Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Product Type, End-User and Region.

Segmentation:

By Product Type:

• Passive AWG Systems
• Active AWG Systems

By End-User:

• Residential
•  Commercial
• Industrial
•  Government

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Atmospheric Water Generation Systems (AWG) Market include Air2Water, Ambient Water, Aquatech International, Atlantis Solar, Dew Point Manufacturing, Drinkable Air, EcoloBlue, Genaq Technologies, Hendrx Water, and Island Sky Corporation, Akvo, Water Systems Pvt. Ltd, Water Technologies International, Zhongling Xinquan, Air Drinking Water Technology Co. Ltd, AirOWater.

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• In May 2023, Khalifa University Unveiled the World's First Solar-Powered Atmospheric Water Generator. The Khalifa University of Science and Technology, in collaboration with UAE-based atmospheric water generator manufacturer Eshara Water, Swedish energy storage technology leader Azelio AB, and Masdar City, a sustainable development, has launched the world's first atmospheric water generation system powered by solar power and electrical thermal energy storage.
• In August 2023, Aryav Ecofriendly Showcases Atmospheric Water Generator at G20 India Shikhar Summit Aryav Ecofriendly Resources Pvt Ltd, an Indian decade-plus-long experience company in delivering innovative environmental products, turned many an eye at the G20 India Shikhar Summit with its pathbreaking Atmospheric Water Generator.

• Air2Water

• Company Overview
• Product Portfolio
• Key Highlights
• Financial Performance
• Business Strategies

•  Ambient Water
•  Aquatech International
•  Atlantis Solar
•  Dew Point Manufacturing
•  Drinkable Air
•  EcoloBlue
•  Genaq Technologies
•  Hendrx Water and Island Sky Corporation
•  Akvo
•  Water Systems Pvt. Ltd
•  Water Technologies International
•  Zhongling Xinquan
•  Air Drinking Water Technology Co. Ltd
•  AirOWater

“*” marked represents similar segmentation in other categories in the respective section.

Research Objective and Assumption

• Research Objectives
• Assumptions
• Abbreviations

Market Preview

• Report Description
  • Market Definition and Scope
• Executive Summary
  • Market Snippet, By Product Type
  • Market Snippet, By End-User
  • Market Snippet, By Region
• Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

• Market Dynamics
  • Drivers
  • Restraints
  • Market Opportunities
• Market Trends
• Product Launch
• Merger and Acquisitions
• Impact Analysis
• PEST Analysis
• Porter’s Analysis

Market Segmentation, Product Type, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Passive AWG Systems
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Active AWG Systems
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, End-User, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Segment Trends
• Residential
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Commercial
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Industrial
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
• Government
  • Overview
  • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

• Overview
  • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
  • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
  • Regional Trends
• North America
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • U.S
    • Canada
• Asia Pacific
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • India
    • Japan
    • South Korea
    • China
    • Rest of Asia Pacific
• Europe
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Rest of Europe
• Latin America
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • Brazil
    • Mexico
    • Rest of Latin America
• Middle East and Africa
  • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By End-User, Forecast Period up to 10 Years
  • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East and Africa

Competitive Landscape

• Heat Map Analysis
• Company Profiles

• Air2Water
• Ambient Water
•  Aquatech International
•  Atlantis Solar
•  Dew Point Manufacturing
•  Drinkable Air
•  EcoloBlue
•  Genaq Technologies
•  Hendrx Water and Island Sky Corporation
•  Akvo
•  Water Systems Pvt. Ltd
•  Water Technologies International
•  Zhongling Xinquan
•  Air Drinking Water Technology Co. Ltd
•  AirOWater

The Last Word

• Future Impact
• About Us
• Contact