It would come as a surprise to many investors that the global water market is worth a whopping $360 billion, with an annual growth rate of 4%-5%. While nearly half of the market is comprised of municipal utility services revenues, around 47%-48% of the market is comprised of consulting, engineering, construction, operations and other services as well as equipment, technology and treatment chemicals.
One of the most interesting constituents of the global water market is the market for Atmospheric Water Generation (AWG) technology. AWG technology extracts water from the air and turns into clean, healthy drinking water. The technology offers a solution to the global shortage of drinking water.
The AWG technology is especially ideal in humid and warm countries of the Middle East and North Africa, Southeast Asia, Latin America and South America.
While the global water market is dominated by large players, there are some emerging players, especially in areas such as AWG technology. One such company is Spokane, Washington-based Ambient Water Corporation (OTCBB:AWGI) which is a designer and seller of atmospheric water generation products.
On Thursday, AWGI announced that it signed a distribution agreement with Wrap Resources Asia Pacific under which Wrap will purchase AWGI’s multiple 400s. The system will be used to generate a clean, sustainable source of drinking water within the target market of offshore platforms & drilling rigs, floating production and storage facilities, and barges.
Keith White, Founder and CEO of Ambient Water, said that the distribution agreement with Wrap Resources is a significant step forward for AWGI as it continues its efforts to provide a water solution for the oil & gas sector and showcases the immediate need for its technology.
AWGI has also been ramping up its marketing efforts in Latin America, which is another important market for AWG technology. The company, last week said that it is testing several of its products throughout Latin American regions. Latin America is facing water scarcity issues even though the region is home to 31% of the world’s fresh water.
White said last week there are concerns of overuse and pollution in Latin America, leading to scarcity in some areas in the South American cone.
AWGI has already involved multiple Latin American organizations to discuss potential applications and in some cases delivered machines for testing purposes.
AWGI is involved in an industry that is experiencing sustained annual growth, but more importantly, there is a significant need for technology like AWG, given the scarcity of drinking water in many parts of the world. This certainly makes AWGI an interesting stock to watch.
