The demand for silver in the photovoltaic (PV) industry has witnessed a remarkable surge, according to the latest findings from the World Silver Survey 2024 released by the Silver Institute.
The report reveals that silver demand in the PV sector soared by 64% from 118.1 million ounces (Moz) in 2022 to 193.5 Moz in 2023. Projections indicate a further 20% increase this year, with demand expected to reach 232 Moz.
While overall silver demand experienced a 7% decline in 2023, dropping from 1,278.9 Moz in 2022 to 1,195.0 Moz, the Silver Institute anticipates a 2% rise in demand for 2024, reaching 1,219.1 Moz.
Despite the downturn in overall demand last year, the report underscores that silver demand has exceeded supply for the third consecutive year, resulting in a deficit of 184.3 Moz. Though this deficit is 30% lower than the previous year’s likely all-time high, it remains one of the largest deficits recorded. Factors contributing to this deficit include declines in bar and coin investment, jewelry, and silverware demand.
The surge in silver demand across all industrial uses, which saw an 11% increase to 654.4 Moz in 2023, has been particularly notable. This growth is attributed primarily to the structural gains from green economy applications, notably in the PV sector.
In the report’s introduction, Silver Institute Chair Philips S. Baker Jr. emphasized the critical role of silver in the future, especially in green energy applications. He noted that solar energy is one of the fastest-growing uses of silver globally.
The average price of silver rose to $23.35 per ounce in 2023, up from $21.73 per ounce in 2022, reflecting the growing demand and market dynamics in the industry.
