Silver's Future: Driving the Green Revolution in Automotive Industry

Oxford Economics projects a 3.4% CAGR in global silver demand from the automotive sector by 2031. As EV adoption accelerates, silver's role in green technologies and digital systems grows. Despite demand uncertainties, silver's properties position it as a key material for the transition to electric vehicles and renewable energy.

According to a report by Oxford Economics, the global demand for silver in the automotive industry is anticipated to grow at a compound annual growth rate (CAGR) of 3.4% from 2025 to 2031. The metal's crucial role in emerging technologies, electric mobility, renewable energy, and digital systems drives this increase.

The report forecasts that by 2031, approximately 94 million ounces of silver will be required by the sector. While internal combustion engine vehicles accounted for 55% of this demand in 2024, the swift adoption of electric vehicles (EVs) is set to change this dynamic, with EVs expected to comprise 59% of silver demand by 2031.

Despite the promising forecast, Oxford Economics warns of potential variabilities. The anticipated integration of more electronic features and autonomous driving technology could push silver demand higher, though efforts to consolidate electronic control units may limit this growth. Outside the auto sector, silver's superior electrical conductivity supports its use in solar panels, data centers, and boosting electric vehicle efficiencies.

(With inputs from agencies.)