What's Really Powering Silver Markets in 2025: A Deep Dive Into Demand for Silver

Silver’s role in modern economy extends far beyond traditional jewelry and collectibles. The precious metal serves as a critical input across electronics, renewable energy infrastructure and automotive systems—a reality reflected in the Silver Institute’s latest projections. Global consumption reached 1.16 billion ounces in 2024, marking the second-highest level ever recorded, with industrial and technology-driven applications accounting for over half of all demand for silver.

The Silver Institute’s 2025 forecast reveals a modest 1 percent contraction to 1.15 billion ounces, yet this slowdown masks significant shifts within individual sectors. Clean energy adoption, electrification of transportation, and artificial intelligence infrastructure are reshaping where demand for silver flows—and investors should pay attention.

Industrial Applications: The Largest Demand for Silver

Representing 677.4 million ounces of expected consumption in 2025, industrial fabrication commands the lion’s share of the market. This category showcases the metal’s unmatched properties as an electrical and thermal conductor.

Electronics Sector Dominance

The electronics segment is projected to consume 456.6 million ounces, making it the cornerstone of industrial demand for silver. Photovoltaics alone accounted for 197.6 million ounces in 2024—a figure that reveals the solar boom’s appetite for conductive materials. As SolarPower Europe reported, installed solar capacity worldwide reached 2.2 terawatts by end-2024, with projections suggesting a climb to over 7 terawatts by 2030. Each solar cell relies on silver paste to convert sunlight into electricity, meaning demand for silver in this segment will likely accelerate.

Beyond solar, silver finds critical roles in membrane switches, ceramic capacitors, conductive adhesives, and heated windshield systems—each representing a stable source of demand for silver from the broader electronics ecosystem.

Transportation’s Growing Appetite

The automotive sector embodies perhaps the most dynamic demand for silver expansion. Modern vehicles activate every electrical function—engine ignition, power windows, seat adjustments—through silver-coated contacts. Battery electric vehicles pack 25 to 50 grams of silver per unit, substantially higher than the 15 to 28 grams found in conventional combustion engines. Hybrid models fall between at 18 to 34 grams.

With the shift toward electrification and charging infrastructure buildout, automotive demand for silver could touch 90 million ounces by 2025. This trajectory reflects broader decarbonization mandates and infrastructure investment pipelines across developed markets.

Brazing and Soldering Applications

Demand for silver in joining processes—particularly brazing and soldering—is forecast at 52.9 million ounces for 2025. These applications remain essential across HVAC systems, refrigeration units, and electrical distribution networks.

Investment-Driven Demand for Silver: Coins, Bars and ETPs

Physical silver investment demand reached a record 338.3 million ounces in 2022 before declining through 2024 to 190.9 million ounces. However, 2025 is shaping up differently. Expected demand for silver through coins, bars, and rounds stands at 204.4 million ounces—a 7 percent increase attributed to renewed financial uncertainty.

What’s particularly noteworthy is the rebound in silver ETPs and ETFs. After witnessing net outflows of 155 million ounces combined in 2022 and 2023, these products captured 61.6 million ounces of inflows in 2024. The Silver Institute projects this momentum to accelerate, forecasting 14 percent growth to 70 million ounces in 2025. Drivers include Federal Reserve rate cuts, concerns about US sovereign debt levels, and geopolitical tensions in the Middle East.

Jewelry and Decorative Uses: A Moderate Demand for Silver Segment

Jewelry accounted for 208.7 million ounces of demand for silver in 2024, a 3 percent increase from prior year. However, the Silver Institute anticipates a 6 percent pullback to 196.2 million ounces in 2025. The metal’s lustrous finish, malleability, and superior reflectivity—compared to gold—make it ideal for crafting heirloom pieces, yet consumer spending patterns appear to be shifting.

Silverware and decorative holloware, by contrast, show persistent decline. This market contracted to 54.2 million ounces in 2024 and is expected to fall another 15 percent to 46 million ounces in 2025, reflecting shifting preferences in home décor and dining traditions globally.

The Bottom Line: Where Demand for Silver Heads Next

The evolution of demand for silver reflects a metals market in transition. While traditional applications like jewelry face headwinds, the renewable energy and EV revolutions are injecting new vigor into industrial consumption. Solar expansion alone positions the coming decade as a period of structural growth for this precious metal, even as near-term forecasts suggest modest consolidation.