Projected Growth in Silver Demand Drivers to Double Rate of Growth Over Next Decade
Key Sectors Driving Silver Demand
According to a report commissioned by the Silver Institute and conducted by Oxford Economics, three key sectors - industrial, jewelry, and silverware - are expected to be significant drivers of global silver demand. These sectors accounted for nearly three-quarters of the world's silver demand in 2022. The report forecasts a 46% increase in silver industrial demand, a 34% rise in jewelry demand, and a 30% increase in silverware demand by 2033.
Strong Output in Critical Industries
The report highlights the strong output expected in industries that utilize silver, particularly in Asia, with China leading the way. The electrical and electronics applications industry is projected to grow by 55% over the next decade, driven by silver's use in solar energy and electric vehicles. The report also notes the evolving demand for silver in brazing alloys, which accounted for 9% of global industrial demand in 2022.
Changing Dynamics in Jewelry and Silverware Demand
India is expected to lead jewelry demand in the coming years, but the report suggests that China may gain market share as its economic situation strengthens. India will continue to lead silverware demand, although potentially with a lower market share than in 2022.
The long-term forecasting provided by the report is crucial for understanding the evolving demand for silver and addressing potential risks, such as structural changes and global economic challenges. The projected growth in silver demand drivers indicates a positive outlook for the silver industry, particularly in key sectors and regions.
The Impact of Projected Silver Demand Growth on New Businesses
Opportunities and Challenges in Key Sectors
The projected doubling of growth in silver demand over the next decade, driven by key sectors such as industrial, jewelry, and silverware, presents both opportunities and challenges for new businesses. For startups in these sectors, the forecasted increase in demand could open up new markets and revenue streams. However, they must also be prepared for potential challenges, such as increased competition and price volatility.
Adapting to Industry Dynamics
The report's emphasis on the strong output expected in industries that utilize silver, particularly in Asia, underscores the need for new businesses to understand and adapt to industry dynamics. For instance, startups in the electrical and electronics applications industry, which is projected to grow by 55% over the next decade, must consider the role of silver in their products and supply chains.
Navigating Market Shifts
The predicted shifts in jewelry and silverware demand, with China potentially gaining market share from India, highlight the importance of market research and strategic planning for new businesses. Startups must stay abreast of these trends to effectively navigate market shifts and seize emerging opportunities.
In conclusion, the projected growth in silver demand drivers could significantly impact new businesses, requiring them to adapt to changing industry dynamics, navigate market shifts, and manage potential risks.