The photovoltaic industry is expected to use less silver in 2026, according to analysis published by the Silver Institute.
The Washington-based association has said that silver industrial fabrication is forecast to decline by 2% year-on-year in 2026, to a four-year low of around 650 million ounces.
It explains that similarly to last year, the trend will be underpinned by developments in the solar sector. “While global solar installations are expected to continue rising, ongoing thrifting and outright substitution away from silver will result in falling silver PV demand,” the institute adds.
Some of the falling demand in the solar sector will be offset by an increased use of silver in other industries, the institute's analysis continues, namely through the expansion of data centers, AI-related technologies and the automotive sector.
Despite the anticipated reduction in silver industrial fabrication, the silver market is expected to remain in deficit, with total supply equalling less than demand, for the sixth consecutive year in 2026.
The Silver Institute says that the underlying drivers that supported silver through much of 2025, including tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty and concerns over the Federal Reserve’s independence, have all remained in place so far this year.
The price of silver has made headlines in recent months, surging by approximately 130% in the past six months and around 243% over the past year to reach an all-time high of $121.65 per ounce on Jan. 29.
Prices dropped sharply at the start of February, as anticipated by leading analysts, and have stabilized around the low $80s per ounce, standing at $83.51 per ounce as of today.
Philip Newman, Managing Director of independent research consultancy Metals Focus, told pv magazine the fact prices have recovered quite well after the end-January correction demonstrates the underlying strength of investor interest in silver.
“As such, we do expect prices to strengthen further this year, although this will be accompanied by high levels of price volatility,” Newman added.
Research published last September found the PV industry could account for 40% of global silver demand by 2030.
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