Silver, the next generation metal
On behalf of The Silver Institute
This report highlights the critical role silver plays in data centres and artificial intelligence (AI), automotive and electric vehicles (EVs), and solar energy photovoltaics (PVs). With these sectors expected to expand significantly over the coming years, we expect future silver demand to be strong.
Silver, long valued for its superior electrical and thermal conductivity properties, is essential to the technological transformations shaping the global economy. Firstly, silver plays a critical role in the green transition as it is a key component in solar panels and electric vehicles and their infrastructure. Solar PVs made up 29% of silver industrial demand in 2024, up from 11% in 2014. As countries worldwide commit to renewable energy transitions and with experts expecting that solar costs will continue to fall, the outlook for installed PV capacity is strong. However, technological developments have reduced the amount of silver required in specific PV cells.
Secondly, the shift from internal combustion engine (ICE) vehicles to electric vehicles is expected to boost silver demand significantly; EVs, especially battery electric vehicles, consume on average 67%-79% more silver than ICE vehicles. Moreover, electrifying the automotive industry increases silver demand due to the parallel need to expand charging infrastructure. In the wider automotive sector, the growing sophistication of vehicles is expected to further boost silver demand through features such as rearview cameras, sensors, and smart displays.
Lastly, the rapid expected expansion of data centres because of digitalisation and AI adoption will act as an additional demand driver. Data centres form the foundation of the digital economy, supporting cloud computing, data storage, and AI operations. Global IT power capacity has surged 53-fold since 2000, underscoring the expansion of computing hardware and silver use. Governments across major economies are designating data centres as strategic infrastructure, offering incentives to attract investment and expand capacity. As AI continues to spread across industries, the need for computing power, and consequently, silver, will keep growing.
The experts behind the research
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Clarissa HahnEconomist
Clarissa is an Economist on the Industry team at Oxford Economics, specializing in tailored economic analysis, including industry outlooks, customized models, strategic assessments, and economic impact studies. Before joining Oxford Economics, she worked as an economic researcher at the European Investment Bank and the United Nations. She holds an MA in Economics from the University of Cambridge.
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Emily GladstoneLead Economist
Emily is a Senior Economist on the Industry team where she supports bespoke industry projects in areas such as renewable energy, construction and insurance. She is also involved in other projects like economic impact studies.
Prior to joining Oxford Economics, Emily worked for 5 years as a government economist for the UK Civil Service, working in the Department for International Trade (DIT) and the Department for Business, Energy and Industrial Strategy (BEIS). In DIT she worked on assessing the socio-economic impact of Free Trade Agreements (FTAs) and Freeports. She also worked in a crisis covid-19 analytical team, providing supply chain analysis and reporting of critical goods to ministers. In BEIS, she used economic analysis to develop policy positions for manufactured goods for both Free Trade Agreements, the Northern Ireland Protocol and the UK's Global Tariff Schedule. Emily holds a Bsc in Economics from the University of St Andrews.
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Amit ShardaAssociate Director, Industry Consulting
Amit Sharda is an Associate Director within the Global Industry Services team at Oxford Economics. In this capacity, he leads bespoke consultancy engagements focused on sales and market demand forecasting and has responsibility for Oxford Economics’ global machine tool market analysis.
Since joining Oxford Economics, he has overseen the quarterly industry forecast updates, articulated the organisation’s house view on industrial developments through its monthly publications, and produced forecasts across a broad spectrum of sectors, including chemicals, pharmaceuticals, construction, automotive, and aerospace. He has contributed to a range of economic reports, notably an evaluation of the drivers of competitiveness in the European chemical industry. In addition, he has applied the Global Economic Model to forecast macroeconomic developments in Sweden and Norway. He holds a first-class degree in Economics of Money, Banking, and Finance.
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