Silver demand seen rising to 65.35 kilotons by 2035 as solar and electronics expand

Global silver consumption is projected to climb from 40.42 kilotons in 2025 to 65.35 kilotons by 2035, driven by solar power, 5G, electric vehicles and data centers, according to Market Research Future. Asia-Pacific already accounts for more than half of demand, while supply remains tight in key mining regions.

Why it matters: - Silver is shifting from a precious metal into a critical industrial input for solar modules, electronics, electrified vehicles and AI infrastructure. - The market’s growth matters because demand is rising faster in strategic technologies than in traditional jewelry and investment uses. - Supply constraints in major mining countries could amplify price volatility and force more recycling, substitution and sourcing controls.

What happened: - Market Research Future estimated global silver consumption at 40.42 kilotons in 2025 and projected it will reach 65.35 kilotons by 2035. - The forecast implies a 4.95% compound annual growth rate through 2035. - Asia-Pacific accounted for 53.4% of global silver consumption in 2025, led by China’s solar module output and India’s electronics expansion.

The details: - Jewelry and silverware still made up about 28% of silver market volume, supported by cultural demand in India and Southeast Asia. - Industrial uses now account for most global consumption, with fine silver representing 66.6% of market volume. - Fine silver is used in photovoltaic paste, electronics-grade sputtering targets and high-performance connectors. - Electrical and electronics applications are projected to grow at a 5.15% CAGR, the fastest among application segments. - Argentium silver is expected to grow at a 5.10% CAGR, driven by tarnish-resistant uses in medical devices and premium jewelry. - The International Energy Agency says global solar PV capacity must reach 5,400 gigawatts by 2030, up from roughly 1,600 gigawatts at the end of 2023. - Each gigawatt of crystalline silicon solar capacity requires about 10 to 15 tonnes of silver paste for cell metallization. - China’s National Energy Administration approved 217 gigawatts of new solar in 2024. - The U.S. Department of Energy’s Solar Futures Study projects cumulative U.S. solar installations will exceed 1,000 gigawatts by 2035. - India’s PM Surya Ghar project targets 10 million residential rooftop systems by 2027. - Global 5G base-station installations are expected to exceed 15 million units by 2028. - The 5G sector is projected to absorb an incremental 800 to 1,200 tonnes of silver annually by 2030. - Global EV sales are projected to reach 30 million units per year by 2030. - Each electric vehicle uses roughly 0.5 to 1.0 ounce of silver in powertrain and charging components. - The International Energy Agency estimates data center electricity consumption will double by 2030. - Silver’s role in advanced semiconductor packaging could expand as chip nodes shrink below 3 nanometers. - Asia-Pacific is forecast to post the fastest regional CAGR at 5.30% through 2035. - China produces more than 80% of global solar cells and a major share of consumer electronics. - India’s demand is rising on electronics subsidies, wedding-season jewelry purchases and rooftop solar adoption. - North America accounts for about 18.2% of consumption. - Europe accounts for 16.8% of consumption. - Mexico and Peru together account for roughly 40% of global mine production. - Peru’s average permitting timeline for new projects has stretched to 7.2 years from 5.1 years in 2019. - Mexico’s 2023 mining law reforms introduced community-consent provisions that have effectively halted three major projects in Zacatecas.

Between the lines: - The report points to a structural mismatch: demand is diversifying into high-growth technologies while mine supply remains concentrated in a few jurisdictions. - Thrifting and substitution are limiting silver intensity in some products, but total volumes keep rising because end markets are scaling so quickly. - Copper-plated photovoltaic ribbon can replace up to 80% of silver in interconnect wiring. - Silver consumption per watt in next-generation solar cells has fallen about 30% over the past decade, with another 15% reduction targeted by 2030. - Price volatility above USD 30 per troy ounce encourages substitution. - End-of-life photovoltaic panels are projected to generate 5 million tonnes of waste annually by 2035. - That waste could contain more than USD 1 billion in recoverable silver. - Secondary recovery currently meets about 15% to 18% of annual demand. - Certified responsibly sourced silver bars trade at 2% to 4% premiums over uncertified material. - Blockchain-enabled traceability can command premiums of 3% to 5% on ethically certified silver.

What's next: - Solar buildouts in China, the U.S. and India are likely to remain the biggest drivers of near-term silver consumption. - Recycling and extended producer responsibility schemes in Japan and the European Union could lift recovery rates above 85%. - Miners and refiners that invest in traceability, community engagement and emissions reduction may capture better pricing through 2035. - The European Union’s designation of silver as strategically important under the Critical Raw Materials Act suggests more policy attention ahead.

The bottom line: - Silver is moving deeper into the industrial economy, with clean energy, connectivity and AI turning the metal into a strategic material rather than just a precious one.