Silver Industrial Demand Surges: EV & Solar Sector Driving Market Growth
Silver is witnessing robust demand in 2025, driven largely by its use in electric vehicles (EVs) and solar photovoltaic (PV) panels. Industrial consumption now accounts for more than 50% of global silver demand, highlighting the metal's critical role beyond jewellery and investment.
Global manufacturers are integrating silver extensively in EV batteries, connectors, and solar cells. According to recent data from the Silver Institute, industrial demand is projected to reach approximately 675 million ounces in 2025, up from 645 million ounces in 2024. :contentReference[oaicite:1]{index=1}
1. Factors contributing to rising industrial demand
- 🔋 Electric Vehicles: Silver is essential in electrical contacts, switches, and EV charging components. With EV adoption rising in the US, Europe, and India, demand for silver continues to climb. :contentReference[oaicite:2]{index=2}
- ☀️ Solar PV Growth: Silver paste is used in photovoltaic cells. Expansion of solar energy projects in India, China, and Europe supports higher silver usage. :contentReference[oaicite:3]{index=3}
- 💻 Electronics: Increased production of smartphones, computers, and 5G devices drives ongoing industrial silver consumption. :contentReference[oaicite:4]{index=4}
2. Impact on Indian markets
For investors and traders in Gujarat (Ahmedabad, Deesa, Tharad), this industrial surge has several implications:
- 🪙 Silver coins and jewellery demand remains steady as retail buyers monitor price trends alongside industrial consumption.
- 📊 Local dealers may see tighter supply for physical silver, pushing premiums higher in high-demand regions.
- 🔍 Long-term accumulation opportunities may emerge if industrial demand continues to rise faster than supply, as structural deficits persist. :contentReference[oaicite:5]{index=5}
3. Current market snapshot
| Metric | Trend |
|---|---|
| Global silver demand (2025F) | ≈ 1.13 billion oz (+1.2 % y/y) :contentReference[oaicite:6]{index=6} |
| Industrial demand forecast | ≈ 675 million oz (+4.7 % y/y) :contentReference[oaicite:7]{index=7} |
| Spot silver (USD) | ≈ US$52.30/oz on 17 Nov 2025 :contentReference[oaicite:8]{index=8} |
| Supply outlook | Mine supply steady; demand growth is structural. :contentReference[oaicite:9]{index=9} |
4. Key triggers to watch
- 🔧 Expansion of EV manufacturing and adoption globally.
- 🌞 Increased solar PV installations in India, China, and Europe.
- 📈 Electronics and tech sector demand continuing to grow.
- ⚠️ Supply constraints in mining and recycling affecting price premiums.
5. Conclusion
Industrial demand is now a significant driver of silver prices, differentiating it from gold’s safe-haven role. Investors in Ahmedabad and Gujarat should track EV and solar sector growth, as these will influence local premiums and potential accumulation opportunities for long-term holding.
Keywords: silver industrial demand 2025, EV silver usage, solar silver consumption, Ahmedabad silver market, silver price forecast India, silver market trends 2025