Industrial Silver Demand: How Technology Is Driving Prices Higher

Silver has long been valued as a precious metal and store of wealth, but its role in modern industry is becoming the dominant force behind price movements. Unlike gold, roughly half of all silver mined each year is consumed by industrial applications, and that share is growing rapidly. The global push toward renewable energy, faster communications, and electrified transport is creating structural demand that shows no sign of slowing. Track daily silver price movements with our free live tracker at silver-price-today.co.uk to see how these trends are reflected in real-time pricing.

Solar Energy: The Biggest Industrial Consumer

The photovoltaic solar industry has become the single largest industrial consumer of silver worldwide. Silver paste is a critical component in solar cells, serving as the conductive layer that collects and channels electrical current. No commercially viable substitute offers the same level of electrical conductivity.

Global solar installations have been growing at a compound annual rate exceeding 25 per cent. The International Energy Agency projects that global solar capacity will more than triple by 2030, and each gigawatt of capacity requires approximately 25 to 30 tonnes of silver. While manufacturers have worked to reduce silver loading per cell, the sheer volume of new installations has more than offset these gains. Solar demand for silver now exceeds 150 million ounces annually and could reach 200 million ounces by 2028. Total global mine supply sits at roughly 830 million ounces per year.

Electronics and 5G Infrastructure

Silver's unmatched electrical conductivity makes it indispensable in electronics. It is found in switches, contacts, connectors, and printed circuit boards in virtually every electronic device. As devices become more sophisticated, silver content per device has remained steady or increased.

The rollout of 5G telecommunications networks represents a significant new demand source. 5G base stations require more silver-containing components than their 4G predecessors, and the higher frequency signals demand a denser network of smaller cells. The UK's own 5G rollout is still expanding, with operators investing billions in new infrastructure. Globally, the number of 5G base stations is expected to surpass 15 million by 2028. Beyond 5G, billions of Internet of Things devices entering the market each year all contain trace amounts of silver.

Electric Vehicles and Automotive Demand

A conventional vehicle contains roughly 15 to 28 grams of silver in its electrical systems. A battery electric vehicle uses between 25 and 50 grams, owing to its more complex electrical architecture, power management systems, and charging components. Electric vehicle sales globally surpassed 17 million units in 2024, and the UK government has set a target of banning new petrol and diesel car sales by 2035.

As the global fleet transitions to electric, automotive silver demand is projected to grow by 50 to 70 per cent over the next decade. Even the growing infrastructure of public charging stations requires silver in electrical connectors and power electronics.

Medical and Antimicrobial Applications

Silver has well-documented antimicrobial properties recognised for centuries. In modern medicine, it is used in wound dressings, surgical instruments, catheters, and hospital coatings. Silver nanoparticles are increasingly found in water purification systems and antimicrobial textiles. The global wound care market is projected to exceed 25 billion US dollars by 2027, and NHS hospitals routinely use silver-impregnated products for burns and chronic wounds. Since the pandemic, silver-infused coatings have also been applied to door handles and touchscreens in public buildings.

Supply Constraints and Price Implications

While demand accelerates, silver mining output has been essentially flat, hovering around 830 million ounces annually. Roughly 70 per cent of silver is produced as a byproduct of mining copper, lead, and zinc, meaning supply does not respond quickly to rising silver prices. Mexico and Peru, the two largest producers, have both seen regulatory changes that slowed new mining investment.

Above-ground stocks have been declining as consumption outpaces supply. The silver market has been in a structural deficit for several consecutive years. For UK investors, these dynamics create a compelling fundamental case. Key factors to monitor include:

• Global solar installation figures and silver loading per cell
• Electric vehicle sales data and government policy timelines
• 5G rollout progress and IoT device proliferation
• Silver mine supply data and recycling volumes
• LBMA and COMEX warehouse inventory levels

Understanding these industrial drivers helps investors appreciate the structural forces shaping the silver market for years to come.