Automotive Torque Converter Market Size - By Transmission (Automated Manual, Dual Clutch, Continuously Variable), By Vehicle (Passenger, Commercial), By Sales Channel (OEM, Aftermarket) & Forecast, 2024 - 2032

Automotive Torque Converter Market Size

Automotive Torque Converter Market size was valued at USD 6.2 billion in 2023 and is projected to register a CAGR of 5% from 2024 to 2032, driven by rising disposable incomes, urbanization, and increased vehicle ownership. This growth is particularly evident in emerging markets, where there is a rising demand for both new vehicles and automotive components. As the industry expands, so does the need for various transmission systems, including those equipped with advanced torque converters. This expansion fuels the market for torque converters as manufacturers seek to meet the increasing production and performance demands of the automotive sector.
 

Governments worldwide are implementing stricter emission regulations to combat environmental pollution and climate change. These regulations mandate automotive manufacturers to improve fuel efficiency and reduce exhaust emissions as well as prefer domestic suppliers. Modern torque converters are developed with advanced technology to optimize engine performance, reduce fuel consumption, and meet stringent emission standards.
 

For instance, in July 2023, Array Technologies launched a new torque converter manufacturing facility in Texas, in collaboration with Lock Joint Tube. This new plant will focus on producing torque tubes for solar trackers, utilizing locally sourced steel to meet domestic content requirements specified by the Inflation Reduction Act (IRA). The IRA mandates increased use of domestic materials in renewable energy projects to strengthen the U.S. supply chain and support local manufacturing. This initiative aligns with regulatory efforts to bolster American manufacturing and reduce reliance on foreign steel.
 

The integration of advanced technologies such as hybrid and electric powertrains introduces complexities in torque converter design and functionality. Torque converters need to be compatible with a wider range of powertrains and technologies, including those with varying power outputs and operational characteristics.
 

Additionally, companies face significant cost pressures due to rising material and production costs. High-quality materials are essential for ensuring the durability and performance of torque converters, but the prices of these materials can fluctuate due to market conditions and supply chain disruptions. Manufacturers need to balance the need for high-quality, reliable components with the necessity of keeping production costs manageable.
 

Automotive Torque Converter Market Trends

The automotive torque converter industry is experiencing a shift towards more advanced technologies, such as the integration of torque converters with advanced transmission systems. Manufacturers are increasingly focusing on developing high-performance torque converters with features like adaptive torque control and enhanced efficiency to meet the growing demand for smoother and more responsive driving experiences. For instance, in October 2023, Mahindra announced that the facelifted XUV300 will feature a new 6-speed torque converter automatic transmission from Aisin. This upgrade is expected to significantly improve the driving experience, offering smoother and more responsive performance.
 

There is a notable trend towards the development of torque converters designed specifically for electric and hybrid vehicles. As the automotive industry transitions towards electrification, torque converters are being adapted to work with hybrid powertrains and electric drivetrains. This includes innovations such as torque converters that can seamlessly integrate with electric motors and hybrid systems to optimize performance and efficiency, reflecting the broader shift towards sustainable and efficient vehicle technologies.
 

Automotive Torque Converter Market Analysis

Based on transmission types, there are four primary categories: Automated Manual Transmission (AMT), Dual-Clutch Transmission (DCT), Continuously Variable Transmission (CVT), and others. Among these, Continuously Variable Transmission (CVT) leads the market, commanding a market share of 37% in 2023. This dominance is due to CVTs' ability to deliver a smooth driving experience and superior fuel efficiency.
 

CVTs are favored for their seamless acceleration and lack of shift points, which enhance vehicle performance and fuel economy. As automotive manufacturers increasingly focus on driver comfort and fuel optimization, CVTs have become the preferred choice for many passenger cars and hybrid vehicles.
 

Based on sales channels, OEMs lead the automotive torque converter market with a significant market share of 78% in 2023. This dominance is attributed to the increasing integration of advanced torque converters in new vehicle models and the growing emphasis on OEM quality and performance standards. OEMs focus on delivering torque converters that enhance vehicle efficiency, driving comfort, and overall performance, aligning with the latest technological advancements and regulatory requirements.
 

Their emphasis on innovation and quality ensures that new vehicles benefit from state-of-the-art components, leading to a strong demand for OEM-supplied torque converters. Meanwhile, the aftermarket segment, while growing, remains secondary as it caters to the replacement and upgrade needs of existing vehicles.
 

Asia Pacific leads with a substantial automotive torque converter market share of 38% in 2023. This is due to its expansive automotive manufacturing base and surging vehicle demand. Major automotive powerhouses such as China, Japan, and South Korea are pivotal in this landscape, with their extensive networks of global car manufacturers and component suppliers. The region's rapid industrial growth, burgeoning urbanization, and a rising middle-class population further fuel this demand.
 

In U.S., the automotive torque converter market is also expanding robustly. The region's strong automotive industry and significant investments in technology contribute to this growth. With a high consumer demand for vehicles featuring enhanced performance and efficiency, the region’s increased adoption of advanced torque converters that offer improved functionality and reliability.
 

In Europe, the automotive torque converter market is witnessing notable growth as advancements in automotive technology drive demand for high-performance components. The region's automotive sector is increasingly adopting advanced torque converters to enhance vehicle efficiency and performance. This growth is fueled by technological innovations and a rising interest in upgrading existing vehicle systems to meet higher standards of power and durability.
 

Automotive Torque Converter Market Share

In the automotive torque converter industry, ZF Friedrichshafen AG, Continental AG and Voith GmbH & Co. collectively hold a significant market share of around 35%. These leading manufacturers focus on developing advanced torque converters that enhance vehicle performance, fuel efficiency, and driving comfort. They leverage state-of-the-art technologies to produce torque converters with improved durability and compatibility with modern transmission systems.
 

The industry is seeing a shift towards new, non-remanufactured solutions that offer superior longevity and reliability, reflecting a broader trend towards high-performance components. Additionally, advancements in torque converters are being tailored to support emerging technologies such as hybrid and electric vehicles. Through ongoing research and strategic initiatives, these companies are shaping the future of automotive torque converters and contributing to overall advancements in vehicle technology.
 

Automotive Torque Converter Market Companies

Major players operating in the automotive torque converter industry are:

• ZF Friedrichshafen AG
• Aisin Seiki Corporation
• BorgWarner Inc.
• Continental AG
• Valeo Group
• Schaeffler Technologies AG & Co.
• Delphi Technologies
• Voith GmbH & Co.
   

Automotive Torque Converter Industry News

• In May 2024, Schaeffler introduced the LuK TorCon 6L80, a new torque converter. This model offers up to five times the lifespan of rebuilt converters and features advanced heat dissipation with fully furnaced brazed fins. Designed for 2007-2020 GM trucks, vans, and SUVs, it simplifies replacement by avoiding model-specific cores and addressing issues typical of remanufactured parts. This launch underscores Schaeffler's commitment to improving aftermarket solutions.
   
• In April 2024, Allison Transmission strengthened its partnership with SANY by integrating the Allison 4970 Specialty Series (SP) transmission, featuring an advanced automatic torque converter, into SANY’s new STC5000 500-ton all-terrain crane. This transmission is renowned for its extended torque range and robust performance, enhancing productivity and maneuverability in challenging terrains across remote regions of China.
   
• In March 2024, BD unveiled the TorqueMaster Ford 6R140 Transmission & Torque Converter Package for 2011-2019 Ford 6.7L Power Stroke F250, F350, F450, and F550 trucks. This new package enhances durability and performance, especially for heavy towing and high horsepower applications. It features improved components for greater strength and reliability, while still ensuring smooth operation.
   

The automotive torque converter market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) & shipment (units) from 2021 to 2032, for the following segments:

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Market, By Transmission

• Automated manual transmission (AMT)
• Dual- Clutch transmission (DCT)
• Continuously Variable Transmission (CVT)
• Others

Market, By Vehicle

• Commercial
  • OEM
  • Aftermarket
• Passenger
  • OEM
  • Aftermarket

Market, By Sales Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA