Torque Converter Market

Global Torque Converter Market Size (2024 to 2032)

The global torque converter market was valued at USD 8.38 billion in 2023 and is anticipated to reach a valuation of USD 8.82 billion in 2024 from USD 13.29 billion by 2032, growing at a CAGR of 5.26% from 2024 to 2032.

MARKET OVERVIEW

The torque converter in a programmed transmission fills a comparable need as a grip in a manual transmission. The interest in torque converters is legitimately identified with the expanded utilization of programmed transmission in current vehicles. The main characteristics of a torque converter are its ability to multiply the torque when there is a substantial difference between the input and the output of motor rotation. Torque is a sort of pressure-driven coupling that depends on the hydrodynamic liquid to permit the motor to work autonomously of the transmission.

The torque converter market is driven by the strong penetration of automatic transmission (AT) in mid and high-end cars. In addition, the increasing penetration of continuously variable transmission (CVT) in mid-tier vehicles is supposed to boost the developing market. The growing demand for luxury, comfort, and convenience is driving technological advances in the market.

MARKET DRIVERS

The torque converters run quietly and help reduce fuel consumption as lag is reduced due to the lack of manual gear shifting. The increasing demand for comfort has led to developments in automatic transmissions and continuously variable transmissions (CVT), which has led to the demand for torque converters. The torque converter requires little maintenance and less frequency to replenish transmission fluid because it is a sealed unit. Pollution regulations and government mandates have led manufacturers to develop fuel-saving technologies. The use of a torque converter improves fuel combustion by achieving optimal torque ratios. The automotive torque converter market is expected to grow due to the increasing demand for fuel-saving technologies. The torque converter developed by Nissan Motor Corporation reduces transmission time by 30%, resulting in a smoother ride and lower fuel consumption. Furthermore, the market for automotive torque converters is supposed to grow due to rising consumer demand for better handling and comfort.

MARKET RESTRAINTS

The torque converter is more expensive than the conventional gearbox because it is advanced technology. The torque converter with its components such as the turbine, impeller, and vaned stator offers less possibility of repair as it is a sealed unit.

Impact Of Covid-19 On The Torque Converter Market

The auto industry forecasts a loss of 7.5 lakh of production units and $ 2 billion in revenue in March alone due to closings to combat the Covid-19 pandemic. Production is nearly stagnant as state governments have imposed closures and companies themselves have closed their factories to help break the chain of the coronavirus transmission. And, more than half a dozen industry leaders and experts said that even an improvement in the COVID-19 situation would not bring much relief to the industry in April, as consumer confidence would take a while to back to normal.

REPORT COVERAGE

SEGMENT ANALYSIS

Global Torque Converter Market Analysis By Automatic Transmission Type

The expanding creation of automatic vehicles in North America offers huge potential for the global torque converter market. The expansion in the quantity of CVT-incorporated business vehicles is probably going to animate the interest in force converters. With the increasing demand for premium segment CVT vehicles in the Asia Pacific, the demand for torque converters used in CVT vehicles is likely to exceed the demand for torque converters used in AT and DCT vehicles. As a result, the CVT torque converter segment is considered the fastest-growing market, by transmission.

Global Torque Converter Market Analysis By Vehicle Type

The passenger car segment has a large share of the torque converter market due to the high rate of adoption of automatic transmissions in passenger cars and the increase in vehicle production. Thanks to improved technology, fully automatic utility vehicles are as fuel efficient as manual utility vehicles. The automatic transmission provides the user with a fatigue-free experience as the user does not have to make frequent gear changes. Ease of driving, especially in heavy traffic, creates a demand for automatic transmission. Over the years, many of the major automotive companies have focused on technologies to improve the automatic transmission of commercial vehicles.

REGIONAL ANALYSIS

The Americas are expected to have a notable share in the global torque converter market, as the adoption of automatic transmission in medium and heavy-duty trucks is observed on a larger scale in their region. As one of the leading manufacturers of AT vehicles, North America has a significant number of passengers equipped with automatic transmission systems, so it is expected to remain a leading region in the torque converter market during the forecast period. The demand for CVT vehicles in developing countries such as China and India is increasing. Because of the expanded creation of programmed vehicles and developing interest in CVT vehicles, Asia-Pacific is relied upon to be the biggest torque converter market by 2025.

RECENT HAPPENINGS IN THE GLOBAL TORQUE CONVERTER MARKET

• The Chinese branch of German auto parts manufacturer Schaeffler pulled its millionth torque converter off the assembly line at the Taicang plant. Not only do torque converters provide vehicles with more torque during acceleration, but they also effectively dampen torsional vibrations from the engine and transmission, so power is transferred more easily, efficiently, and quickly to the wheels.
• ZF intelligently designed a new generation 8-speed automatic transmission for hybrid transmissions.
• Japanese clutch maker Exedy Corp. spends around 10 billion yen ($ 87 million) to expand its business in Shanghai to meet the growing demand for automatic transmissions in China.

KEY MARKET PLAYERS

Schaeffler (Germany), ZF (Germany), Aisin (Japan), EXEDY (Japan), BorgWarner (US), Valeo (France), Volkswagen Group (Germany), Mercedes-Benz (Germany), Ford (US), Hyundai (South Korea), Toyota (Japan), TATA (India), India (ACMA), Japan Automotive Manufacturers Association (JAMA), European Automobile Manufacturers' Association (ACEA), Canadian Vehicle Manufacturers' Association. These are the market players that are dominating the global torque converter market.

DETAILED SEGMENTATION OF THE GLOBAL TORQUE CONVERTER MARKET INCLUDED IN THIS REPORT

This research report on the global torque converter market has been segmented and sub-segmented into the following categories.

By Automatic Transmission Type

• AMT (Automated Manual Transmission)
• DCT (Dual-Clutch Transmission)
• CVT (Continuously Variable Transmission)

By Vehicle Type

• Passenger Car
• HCV (Heavy Commercial Vehicles)
• LCV (Low Commercial Vehicles)

By End Users

• Original Equipment Manufacturer (OEM)
• Aftermarket 
• The OEM segment has a large market share due to increased vehicle production around the world.

By Region

• North America
• Europe
• Asia-pacific
• Middle-east and Africa
• Latin America