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This graphic uses data from the Silver Institute's World Silver Survey 2024 to illustrate changes in silver demand across various sectors from 2015 to the projected figures for 2024. Total demand is expected to increase by 14.43%, rising from 1,065 million ounces in 2015 to an expected 1,219 million ounces in 2024. One sector, photovoltaics, stands out as the primary driver of this demand growth
1. The Renewable Energy Boom and Photovoltaic Demand Surge
Over the past decade, one of the most striking shifts in the silver market has been the explosive growth in demand from the photovoltaic (solar energy) sector. As the world races toward cleaner energy solutions, solar power has emerged as a major industry, and silver plays a critical role in this transition. From 2015 to 2024, silver demand for photovoltaics is expected increase by 289.26%, making it the fastest-growing sectors in the silver market.
Silver is an essential component in the production of photovoltaic (PV) cells, which are the building blocks of solar panels. The metal's exceptional conductivity and reflectivity make it ideal for converting sunlight into electricity. Each solar panel contains a small amount of silver, which is used in the form of silver paste, applied to the surface of PV cells to capture and conduct electrons.
As solar power continues to expand, silver remains indispensable to the manufacturing process. The increasing global push towards renewable energy has translated into a massive surge in demand for solar panels, and with it, the demand for silver.
2015 Demand: 60 million ounces
2024F Demand: 232 million ounces
% Change: +289.26%
Ounce Change: +172 million ounces
In 2015, the photovoltaic industry consumed 60 million ounces of silver. By 2024, this demand is projected to reach 232 million ounces, an increase of 172 million ounces over the decade. This growth reflects the accelerated adoption of solar power worldwide, driven by governments, corporations, and consumers seeking to reduce carbon emissions and dependence on fossil fuels.
The threefold increase in silver demand within the solar sector underscores how critical this precious metal has become to the clean energy transition. Silver is one of the most efficient materials for capturing solar energy, and despite efforts to reduce the amount used in individual panels, the overall demand has surged due to the sheer scale of solar expansion.
2. Growth in Electrical & Electronics
The electrical and electronics sector, excluding photovoltaics, is expected to see a 19.25% increase in silver demand, amounting to 254 million ounces in 2024. This steady growth underscores silver’s critical role in modern electronics, including semiconductors and consumer gadgets. As technological integration continues to advance in everyday life and industrial systems, silver’s demand in this sector is expected to remain robust, given its unique properties and versatility in electronic applications.
3. Declines in Net Physical Investment and Photography
While technological sectors drove demand, net physical investment in silver is expected to experience a notable decline of 31.46%, to a total of 212 million ounces. This reduction likely reflects shifts in investor behavior, market volatility, alternative investment options, and changes in global economic conditions that influence the appeal of physical bullion.
Similarly, demand for silver in photography is expected to decrease by 31.68% due to the dominance of digital technology. The once-essential use of silver in film-based photography has seen a steep drop as digital cameras and smartphones have become ubiquitous. This decline marks a significant transformation in a market once closely tied to silver’s value.
4. Silverware and Jewelry: Steady Consumer Preference
In contrast to the more dynamic sectors, demand for silverware is expected to remain stable, with a slight increase of 0.86% to 58.8 million ounces. Meanwhile, jewelry saw modest growth of 4.35%, reaching 211.3 million ounces. These figures indicate a continued, albeit less pronounced, preference for silver adornments and utensils. Despite facing competition from other luxury materials, silver’s timeless appeal endures among consumers.
5. Expanding Industrial Uses and Brazing Alloys & Solders
Other industrial applications of silver are expected to grow by 29.77%, totaling 173.5 million ounces in 2024. This reflects silver’s versatility and enduring demand across various sectors, including automotive manufacturing, water treatment, and chemical processing. The demand for brazing alloys and solders are expected to rise slightly by 1.37%, amounting to 51.8 million ounces, demonstrating their continued necessity in joining and bonding metals in numerous industrial processes.
Sponsors
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Outcrop Silver is a leading exploration and development company focused on advancing the high-grade Santa Ana silver project in Colombia. The company leverages a seasoned team with extensive regional experience to expand its mineral resources through strategic exploration. Outcrop Silver is committed to responsible mining and community engagement, prioritizing sustainable development. With a deep understanding of Colombia's mining landscape and a strong track record, the company aims to transform Santa Ana into a significant silver producer, contributing to both local economic growth and industry standards. Learn more about Outcrop Silver at https://outcropsilver.com/ | Eloro Resources Ltd. is an exploration company focused on developing a world class silver and tin project in Bolivia's Potosí Department. Our flagship project, ISKA ISKA , ranks in the top five of global undeveloped resources in scale for both tin and silver. This truly significant grass roots discovery remains open in multiple directions with further potential to both expand and enhance. This world class deposit benefits not only from its proximity to infrastructure, but more importantly, from our connection to Bolivia through our management team and community involvement. Our goal at Eloro is clear - expand resources, attract partnerships, and establish itself as a key player in the mining sector. Learn more about Eloro Resources at https://elororesources.com/ |
Source: Silver Institute, World Silver Survey 2024
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