
Silver Industrial Demand Surges: EV & Solar Sector Driving Market Growth
Silver is experiencing a strong surge in industrial demand in 2025, driven largely by its expanding 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 importance beyond jewellery and investment.
Manufacturers worldwide are integrating silver into EV batteries, electrical connectors, switches, and solar cells. According to the Silver Institute, industrial demand is projected to reach approximately 675 million ounces in 2025, up from 645 million ounces in 2024. Short-term volatility, however, remains a factor, as discussed in our recent analysis of the silver price dip.
1. Key Factors Driving Industrial Silver Demand
- 🔋 Electric Vehicles: Silver is used in electrical contacts, switches, and EV charging infrastructure. Rapid EV adoption in India, Europe, and the US is directly increasing silver consumption.
- ☀️ Solar PV Growth: Silver paste is a critical input in photovoltaic cells. Large-scale solar installations in India, China, and Europe are supporting higher demand.
- 💻 Electronics & Technology: Rising production of smartphones, data centers, and 5G devices continues to drive steady industrial usage.
2. Impact on Indian & Gujarat Markets
For investors and traders in Gujarat (Ahmedabad, Deesa, Tharad), rising industrial demand has clear implications:
- 🪙 Retail demand for silver coins and jewellery remains stable.
- 📊 Tight physical supply may push local premiums higher.
- 🔍 Structural supply deficits may support long-term accumulation strategies.
3. Global Silver Market Snapshot (2025 Forecast)
| Metric | Forecast / Trend |
|---|---|
| Global silver demand | ≈ 1.13 billion oz (+1.2% y/y) |
| Industrial demand | ≈ 675 million oz (+4.7% y/y) |
| Spot silver (USD) | ≈ US$52.30/oz (Nov 2025) |
| Mine supply | Steady; structural deficit persists |
4. Key Triggers to Watch
- 🔧 Expansion of EV manufacturing and charging infrastructure.
- 🌞 Growth in solar PV installations globally.
- 📈 Rising electronics and semiconductor demand.
- ⚠️ Supply constraints in mining and recycling.
5. Conclusion
Industrial demand has become a defining force in silver price dynamics, clearly separating silver from gold’s safe-haven role. While short-term volatility can occur, long-term fundamentals remain supportive for patient investors.
Author: GS24Live Market Desk
Last Updated: 15 December 2025
Keywords: silver industrial demand 2025, EV silver usage, solar silver consumption, Ahmedabad silver market, silver price forecast India
