Three key sectors of global silver demand – industrial, jewelry and silverware – are significant drivers for annual silver consumption and accounted for nearly three-quarters of the world’s demand for silver in 2023. This stands in contrast to investment demand for silver, which was a sturdy 27 percent of overall silver demand last year.
New research indicates that silver industrial demand is forecast to increase 46 percent through 2033, while jewelry and silverware demand is projected to rise 34 and 30 percent, respectively, according to Oxford Economics, a leading independent economic advisory and consultancy firm based in London.
Their report, “Fabrication Demand Drivers for Silver in the Industrial, Jewelry and Silverware Sectors Through 2033,” was commissioned by the Silver Institute to examine and forecast the growth rates of key sectors of global silver manufacturing demand, and to gain insight into how demand will change over the next decade.
The consultancy found that the combined output of silver industrial, jewelry and silverware fabricators is forecast to increase 42 percent, effectively double the growth rate over the previous decade, 2014-2023.
The report finds that a few critical industries that use silver are forecast to experience strong output over the next decade, which is most likely to occur in Asia, particularly China. The report indicates that the forecasted increase in demand reflects the rapid growth in the output of the electrical and electronics applications industry, which is expected to grow by 55 percent over the decade.
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 percent of global industrial demand in 2022.
Oxford Economics forecasts that India will lead jewelry demand over the next ten 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 is to continue to be led by India, but perhaps with a lower market share than it recorded in 2022.
The report also addresses why long-term forecasting is essential, and examines potential risks, such as structural changes like thrifting or possible global economic challenges.