Silver demand growth for industrial, jewelry and silverware uses forecast to double in next decade

Demand for silver by fabricators in the industrial, jewelry and silverware sectors is forecast to increase 42% over the next decade, around double the growth rate in 2013-23, according to a report from London-based consultancy Oxford Economics. 

The report, Fabrication Demand Drivers for Silver in the Industrial, Jewelry and Silverware Sectors through 2033, was commissioned by the Silver Institute to forecast growth rates and gain insight into how demand will change over the next decade. 

Industrial, jewelry and silverware fabricators accounted for nearly three-quarters of the world’s demand for silver in 2022, according to the Silver Institute. 

“New research indicates that silver industrial demand is forecast to increase 46% through 2033, while jewelry and silverware demand is projected to rise 34% and 30%, respectively, according to Oxford Economics,” the Silver Institute said in a release. 

The research found that a few critical industries that use silver are forecast to experience strong demand over the next decade, which is most likely to occur in Asia, particularly China. Additionally, the forecast increase in demand reflects the rapid growth in the electrical and electronics applications industry, which is expected to expand by 55% over the decade.

“This is an annual average growth rate of 4.5%. The pace of growth is expected to be faster in the first five years (2023-28) compared to the second (2028-33), at an average of 5.4% versus 3.5% a year,” the report added. 

Manufacturers of electronics and electrical applications are the primary purchasers of industrial silver. In 2022, these industries consumed 371.5Moz, or 67% of the silver used for industrial purposes, according to Oxford Economics. 

“Silver’s use in solar energy and electric vehicles will help lead this category forward. The report also looks at the evolving demand for silver in brazing alloys, which alone consumed 9% of global industrial demand in 2022,” the Silver Institute said. 

Most of the growth of the three industries over the next decade is forecast to occur in China. The country is projected to have a 65% share of the growth in global electronics and electronic applications demand between 2023 and 2033. It is followed by South Korea (5%), and the United States and Japan with 3% each, the report said.

“By 2033, we forecast 60% of the three end-user industries’ production will be located in China. South Korea and Japan are both predicted to have a 5% share each,” it added. 

Oxford Economics forecasts that India will lead jewelry demand over the next 10 years, but the report indicates that it may lose some of its silver jewelry dominance to China as that country’s economic situation strengthens. Silverware demand will continue to be led by India, but perhaps with a lower market share than in 2022.

In a previous report, the Silver Institute said projects in Mexico – the world's largest silver producer – are playing a significant role in global mined silver growth this year.

Silver mine production is expected to rise 2.4% this year to 842Moz after falling 0.6% in 2022 to 822Moz.