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Informist, Wednesday, Dec. 10, 2025

 

MUMBAI – Demand for silver is expected to rise further due to demand from vital technology sectors, the Silver Institute said in a release dated Tuesday. Sectors such as solar energy, automotive electric vehicles and their infrastructure, data centres and artificial intelligence, will drive industrial demand for silver through 2030, the institute said. "Silver's superior electrical and thermal conductivity properties are increasingly essential to the technological transformation driving the global economy," it said.

 

Globally, as countries are committed to renewable energy transitions and solar installations, solar photovoltaic technology is among the most significant and fastest-growing applications of the precious metal. This sector is expected to continue accounting for a considerable portion of total silver demand. "Although the global trajectory of photovoltaic installations remains strong, technological developments have reduced the required amount of silver in some photovoltaic cells. The loss of government subsidies and incentives in certain countries, however, is likely to be offset by ambitious targets in others," the institute said.

 

The rise of electric vehicles is also driving strong growth in silver consumption. Electric vehicles use significantly more silver than internal-combustion vehicles. Silver is used in various applications, including battery management systems, power electronics, charging infrastructure, and electrical contacts. "The shift from internal combustion engine vehicles to electric vehicles is expected to boost silver demand significantly; electric vehicles, especially battery-electric vehicles, consume, on average, 67-79% more silver than internal combustion engine vehicles, with approximately 25-50 grams of silver per electric vehicle," the release said.

 

Global automotive silver demand is projected to grow at a 3.4% compound annual growth rate from 2025 to 2031. Electric vehicles will likely surpass internal combustion engine vehicles as the main source of silver demand in the automotive sector by 2027, accounting for 59% of the market by 2031. Silver demand will also rise due to expansion of charging infrastructure as the number of electric vehicles rise.

 

Data centres are providing the physical infrastructure needed to run cloud computing services, store and manage data, and increasingly, power artificial intelligence systems. As digitalisation and artificial intelligence adoption increases, the demand for critical minerals, such as silver, will increase as it is used in applications.

 

"The report estimates that total global information technology power capacity increased about 53 times, from 0.93 gigawatt in 2000 to nearly 50 GW in 2025. Even in the absence of precise silver-loading data, the link is clear: a 5,252% increase in IT power demand translates into more computing hardware and, consequently, greater demand for silver," the institute noted.

 

Governments around the world are treating data centres as essential infrastructure and are introducing supportive policies --including tax incentives, grants, and streamlined approvals -- to attract major private investment. Initiatives in the US, UK, Europe, and China aim to attract large-scale private investment, reduce barriers, and expand capacity to meet the rising demand for artificial intelligence and cloud services, which will ultimately drive growth in materials like silver, it said.  End

 

Reported by Reshma Ravi

Edited by Nishant Maher

 

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