Silver is rapidly becoming essential in the global push toward clean energy and advanced technology. Beyond its traditional role as a precious metal, silver is now crucial for solar panels, electric vehicles (EVs), medical devices, and water purification.
In 2025, soaring demand for green technologies and limited supply are reshaping the silver market. Its unmatched electrical conductivity makes silver indispensable in electronics and EVs, with auto sector use expected to triple by 2040, according to the Silver Institute.
Solar energy is also driving growth. Silver demand from solar photovoltaic (PV) cells is projected to reach 14% of global use this year, up from 5% in 2014. The solar sector alone is forecast to grow 20% in 2025.
Silver’s antimicrobial properties boost demand in medical applications and water purification, while its role in producing eco-friendly materials is expanding.
Despite increased recycling and mine output, the silver market faces its fifth consecutive annual deficit, estimated at 149 million ounces in 2025. Industrial demand is expected to exceed 700 million ounces, pushing total consumption to 1.2 billion ounces.
Investment in physical silver is rising by 3%, driven by Western markets, though high prices are reducing jewelry demand, especially in India and China.
Supply growth—projected at 3%—is the highest in over a decade but still falls short of demand. Mine expansions in China, Canada, Chile, and Morocco help, alongside a 5% rise in recycling.
Silver prices hover near $37 per ounce and are expected to exceed $40 soon, fueling interest in silver stocks. Delays in new mining projects limit supply, intensifying the price rally.
With global economic uncertainties and strong government support for clean energy, silver’s role as both an industrial metal and safe investment looks set to strengthen throughout 2025.
