Silver isn’t just a precious metal; it’s an industrial powerhouse. Approximately 59% of silver demand now comes from industrial applications, a significant increase from just 50% a decade ago. Thailand has emerged as an important player in the silver market, with a 13% increase in silver fabrication in 2024. This growth was driven by strong exports to Western markets, particularly in jewelry and decorative items. However, the country also faces challenges due to rising silver prices, which have impacted local demand for silverware and gifts.
This surge is largely due to the global push toward clean energy and advanced technology. The silver market has been in a deficit for seven consecutive years, with a cumulative shortfall of nearly 200 million ounces. This means demand is outstripping supply, creating a challenging but opportunity-rich landscape.
Despite the growth in industrial uses, silver remains a popular investment asset. In 2025, silver prices surged by nearly 25%, breaking past $40 per ounce. Silver-backed exchange-traded products (ETPs) also saw significant inflows, reflecting strong investor confidence.
Jewelry and silverware, while not growing as fast as industrial demand, still account for a substantial portion of silver use. In 2024, jewelry fabrication grew by 3%, with notable increases in markets like India and Thailand.
Solar Energy: The Biggest Driver of Demand
The solar industry is the single largest consumer of silver today. Solar panels use silver paste to conduct electricity efficiently, and as the world accelerates its transition to renewable energy, silver demand from this sector has exploded. In 2024, solar photovoltaic (PV) demand reached 197.6 million ounces, accounting for 19% of total global silver demand.
Electronics and Electrical Applications
Silver’s excellent electrical conductivity makes it irreplaceable in many electronic devices. The electronics sector consumed over 445 million ounces of silver in 2023, a 20% increase from the previous year. This growth is fueled by the expansion of 5G networks, the Internet of Things (IoT), and artificial intelligence (AI).
From smartphones to AI-powered data centers, silver is everywhere. It’s used in semiconductors, circuit boards, and even advanced computing systems. As AI technology evolves, silver demand is expected to rise further, since AI servers require two to three times more silver than traditional data centers.
Automotive Industry: Fueling Silver Demand
The electric vehicle (EV) revolution is another major driver of silver demand. EVs use significantly more silver than conventional cars—anywhere from 25 to 50 grams per vehicle, compared to 15–28 grams in internal combustion engine vehicles. Silver is essential for battery management systems, power electronics, and charging infrastructure.
With global EV sales projected to reach 30 million units annually by 2030, the automotive sector’s silver consumption is expected to double in the coming years.
Healthcare and Medical Uses
Silver’s antimicrobial properties make it a valuable material in healthcare. It is used in wound dressings, surgical instruments, and even coatings for medical devices to prevent infections. The global market for silver nanoparticles is growing rapidly, projected to reach $12.1 billion by 2034.
For businesses and investors, understanding silver’s evolving role is crucial. From powering solar farms to enabling AI breakthroughs, silver is no longer just a precious metal—it’s a cornerstone of modern technology and a sustainable future.
