Why do droplets form on the outside of a saucepan?

Droplets form on the outside of a saucepan due to condensation. When the saucepan is heated, the air around it warms up and can hold more moisture. As the warm air comes into contact with the cooler surface of the saucepan, it cools down, causing the water vapor in the air to condense into liquid droplets. This process is similar to how dew forms on grass in the morning.