Market Size of Automotive Torque Converter Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 6.50 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Torque Converter Market Analysis
The Automotive Torque Converter Market was valued at USD 16580 million in 2021 and is expected to reach USD 24192 million by 2027, registering a CAGR above 6.5% during the forecast period (2022 - 2027).
Recent COVID-19 has disrupted the market growth. With lockdowns and travel restrictions, the demand for vehicles has declined. As a result, the growth of automotive parts in the automotive industry has also declined in the past two years. This trend is seen in all segments related to the automotive industry.
Over the medium term increasing adoption of torque converters in commercial vehicles is expected to drive demand in the market over the forecast period. The increasing adoption of automatic transmission in commercial vehicles is driven by the increasing construction activities and rising freight and logistics sectors. Further, Ongoing technological advancements and increasing demand for hybrid electric vehicles are expected to further support demand in the market.
The torque converter in an automatic transmission serves a purpose similar to a clutch in a manual transmission. The demand for torque converters is directly related to the increased use of automatic transmission in modern vehicles.
Besides these factors, increasing vehicle fleet, development of efficient transportation and logistics industry, and the need to enhance the driving experience by manufacturers are expected to boost the Global Automotive Torque Converter Market growth in the forecast period. However, high maintenance costs and the risk of malfunctioning automotive torque converts may hinder the market growth in the forecast period.
North America, followed by Europe and Asia-Pacific region, anticipated significant growth during the forecast period, mainly due to the early adoption of these converters and the high demand for premium vehicles in the region. Additionally, the market growth in these regions is projected to be driven by the growing adoption of automatic transmission systems in medium and heavy-duty trucks over the forecast period.
Automotive Torque Converter Industry Segmentation
A torque converter is a type of fluid coupling that transfers rotating power from a prime mover, like an internal combustion engine, to a rotating driven load. In a vehicle with an automatic transmission, the torque converter connects the power source to the load. It is usually located between the engine's flex plate and the transmission. The equivalent location in a manual transmission would be the mechanical clutch.
The Automotive Torque Converter Market is segmented by Transmission Type. Vehicle Type and Geography. By Transmission type, the market is segmented into AMT, DCT, CVT, and Others. By Vehicle Type, the market is segmented into Passenger Vehicles and Commercial Vehicles, and By Geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle-east and Africa. For each segment, market sizing and forecast have been done on the basis of a value (in USD billion).
| Transmission Type | |
| Automated manual transmission (AMT) | |
| Dual- Clutch transmission (DCT) | |
| Continuously Variable Transmission (CVT) | |
| Others |
| Vehicle Type | |
| Passenger Vehicles | |
| Commercial Vehicles |
| Geography | |||||||
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Automotive Torque Converter Market Size Summary
The automotive torque converter market is poised for significant growth, driven by the increasing adoption of automatic transmission systems in vehicles. This trend is particularly evident in commercial vehicles, where the demand is fueled by rising construction activities and the expanding freight and logistics sectors. Technological advancements and the growing popularity of hybrid electric vehicles further bolster market demand. The torque converter, which functions similarly to a clutch in manual transmissions, is becoming more integral as automatic transmissions gain traction in modern vehicles. Despite challenges such as high maintenance costs and potential malfunction risks, the market is expected to benefit from the expanding vehicle fleet and the need for enhanced driving experiences.
Regionally, North America is anticipated to lead the market growth, supported by the early adoption of torque converters and a high demand for premium vehicles. The Asia-Pacific and European regions are also expected to experience notable growth, driven by the active engagement of key players and the introduction of new vehicle models featuring advanced torque converter technologies. Major automotive companies are focusing on innovations to improve automatic transmission systems, which are now as fuel-efficient as manual ones, offering ease of driving and comfort. The market's consolidation is evident with dominant players like Exedy, BorgWarner, Aisin Seiki, and Valeo, who are actively pursuing strategies such as partnerships and product launches to enhance their market share.
Automotive Torque Converter Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value USD billion)
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2.1 Transmission Type
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2.1.1 Automated manual transmission (AMT)
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2.1.2 Dual- Clutch transmission (DCT)
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2.1.3 Continuously Variable Transmission (CVT)
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2.1.4 Others
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2.2 Vehicle Type
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2.2.1 Passenger Vehicles
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2.2.2 Commercial Vehicles
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Spain
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2.3.2.5 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 Rest of Asia-Pacific
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2.3.4 Latin America
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2.3.4.1 Mexico
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2.3.4.2 Brazil
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2.3.4.3 Argentina
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2.3.5 Middle-East and Africa
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2.3.5.1 United Arab Emirates
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle-East and Africa
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Automotive Torque Converter Market Size FAQs
What is the current Automotive Torque Converter Market size?
The Automotive Torque Converter Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)
Who are the key players in Automotive Torque Converter Market?
Aisin , BorgWarner, Exedy , ZF Friedrichshafen AG and Valeo are the major companies operating in the Automotive Torque Converter Market.
