Skyrocketing Photovoltaic Demand Powers Surge in Silver Consumption

Silver demand in the industrial sector surged by 20% in 2023, reaching a record 654.4Moz, largely driven by the booming photovoltaic (PV) market. Notably, PV demand alone saw a remarkable 64% increase, reaching 193.5Moz, underscoring the vital role of silver in this rapidly expanding renewable energy sector. This growth was underpinned by higher-than-expected PV capacity additions and the adoption of new-generation solar cells.

Surge in Silver Demand for Photovoltaics Outpaces Forecasts

New York, April 17, 2024

The silver industry has witnessed a remarkable surge in demand for photovoltaic (PV) applications, surpassing initial estimates. According to the World Silver Survey 2024, released today by the Silver Institute, silver demand in this sector skyrocketed by a staggering 64 percent to 193.5 million ounces (Moz) in 2023.

This substantial growth is attributed to the rapid expansion of PV capacity and the adoption of advanced solar cell technologies. The renewable energy sector is driving the increased consumption of silver, which is an essential component in solar panel production.

Industrial Demand Drives Record Highs

Overall, industrial demand for silver reached an unprecedented 654.4 Moz in 2023, a 11.4 percent increase compared to 2022. This surge was propelled by the growth in green economy applications, including PV, power grid construction, and automotive electrification.

Electrical and electronics applications accounted for 445.1 Moz of silver demand, a notable 20 percent increase. This growth is a testament to the indispensable role of silver in PV cells and other cutting-edge technologies.

Other Green Applications Gain Momentum

In addition to PV, other green-related sectors also contributed to the rising industrial demand for silver. The construction of new power grids and the electrification of vehicles, driven by the push for sustainability, further reinforced silver's use in these industries.

Supply Deficit Persists

Despite the robust demand, silver supply has been unable to keep pace. Global silver production declined slightly by 1 percent in 2023 to 830.5 Moz, impacted by labor strikes, reduced ore grades, and mine closures. Recycling efforts, which account for approximately 18 percent of total supply, also experienced modest growth.

Consequently, the silver market has faced a structural deficit for the third consecutive year, with a shortfall of 184.3 Moz in 2023. This deficit is expected to widen further in 2024, driven by strong demand and limited supply.

Demand Outlook: Continued Growth

The Silver Institute's 2024 outlook predicts a solid year for silver demand, with a projected increase of 2 percent. Industrial fabrication, including PV applications, is anticipated to drive this growth. Jewelry and silverware fabrication are also expected to see modest gains.

Silver Price on the Rise

In line with the robust demand, the average silver price increased by 7 percent in 2023. This trend has continued into 2024, with the silver price experiencing a 30 percent surge since the beginning of the year.

Silver's Role Beyond Traditional Applications

The Survey highlights the growing applications of silver beyond its traditional uses. Silver's exceptional properties make it an essential material in emerging technologies, including artificial intelligence (AI). End uses expected to incorporate silver in AI encompass transportation, nanotechnology, biotechnology, healthcare, consumer wearables, computing, and energy in data centers.

About the World Silver Survey

Published annually since 1990, the World Silver Survey provides comprehensive data and analysis on the global silver market. The 34th edition, researched and produced by Metals Focus, is sponsored by leading companies from North and South America, Europe, and Oceania.

This report is a valuable resource for market participants, industry analysts, investors, and policymakers seeking insights into the dynamics and outlook of the silver market.