Automotive Torque Converter Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| CAGR | 6.50% |
| Fastest Growing Market | Europe |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Automotive Torque Converter Market Analysis
The Automotive Torque Converter Market is expected to register a CAGR of greater than 6.5% during the forecast period.
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 Market Trends
Increasing Adoption of Automatic Transmissions in Commercial Vehicles
With the improvement in technology, fully automatic commercial vehicles are as fuel-efficient as manual commercial vehicles. The automatic transmission provides the user with a fatigue-free experience as the user is free from frequent gear shifting. Ease of driving, especially in heavy traffic, is creating a demand for an automatic transmission. Over the years, many major automotive companies have been focusing on technologies to improve automatic transmission in commercial vehicles.
- In Jan 2022, The iTC torque converter from Schaeffler represents an entirely new generation of components that are lighter and reduce vibrations. A key feature of the TC - or 'integrated torque converter,' to give it its full name - is a lock-up clutch that is integrated into the converter's turbine. This not only makes the system lighter it also creates space for more efficient torsion dampers, such as the centrifugal pendulum-type absorber.
In the light of increasing commercial vehicle sales and higher penetration of automatic transmission systems, key players have introduced some innovative solutions for commercial vehicles. For instance,
- ZF's TraXon offers more torque, an optimal gear ratio spread, and the best efficiency in its class, thus setting the bar for transmissions designed for cranes and commercial and special vehicles. The TraXon Torque variant integrates a torque converter with a dry clutch as a launch element.
Such aforementioned factors and developments are anticipated to poise a positive outlook for the market over the forecast period.
North America Likely to Play Significant Role in the Development of Market
North America was estimated to play a key role in the development of the market during the forecast period. The prospects for growth of the torque converter market in America will be significantly affected by the increased adoption of automatic transmission in passenger cars and heavy-duty and medium-duty commercial vehicles. For instance,
- In 2021, Around 12 million commercial vehicles were sold in the United States, up from approximately 11.5 million units reported in 2020. This type of vehicle includes motor vehicles used for transporting goods or paid passengers. Further, In 2021 the year started positively for the USA market. In fact, in Q1, 3.97 million units were sold, reporting a 13.2%, followed by an impressive 46.9% increase in sales in Q2 with 4,35 million units compared to the previous year.
High fuel efficiency, comfort, ease of driving, and low driving skill requirement will compel the fleet owners to opt for automatic transmission in these vehicles. The high growth rate in these regions is mainly attributed to the technological advancement and easy adoption of the new technology in countries such as the U.S, Canada, etc. Apart from North America, Europe and Asia-Pacific regions are also witnessing notable growth supported by the active engagement of key players and automotive OEMs launching of latest car models with these torque converter technologies to attract consumers. For instance,
- Volkswagen unveiled the 2022 Virtus in India with some changes compared to the model, which is on sale in the international markets. Volkswagen to offer two petrol engines with the Virtus. The 1.0L turbo petrol engine will produce 110PS of power and 175Nm of torque, mated to either a 6-speed manual or a 6-speed torque converter automatic transmission. The 1.5L turbo petrol engine will produce 150PS of power and 250Nm of torque, mated to either a 6-speed manual or a 7-speed dual-clutch automatic transmission.
Thus, the aforementioned factors indicate the active progressions happening across these regions, and hence such developments are expected to contribute to the overall development of the market during the forecast period.
Automotive Torque Converter Industry Overview
The automotive automatic transmission market is highly consolidated, with major players, like Exedy, Borgwarner, Aisin Seiki, Valeo, and Others, dominating the market. These players are focusing on designing various growth strategies to improve their share in the market. Some of the latest developments like expansion, partnerships, product launches, etc., have been briefed below for a better understanding of the market. For instance,
- In September 2020, The Skoda Rapid automatic was launched with an automatic transmission with their turbo petrol engines in India. The Rapid AT will compete with the Hyundai Verna turbo DCT, Honda City CVT, and the Toyota Yaris CVT. The only other torque converter automatic happens to be the Maruti Suzuki Ciaz, but then it uses a 4-speed AT.
The market has also witnessed numerous partnerships, especially between players in the automatic transmission, be it OEM-OEM (Example - Ford and GM partnership) or OEM-Suppliers (Example - BMW and ZF, Land Rover and ZF, Chrysler and ZF, Allison and China National Heavy Duty Truck Group, etc.). Most of the partnerships have centered around building efficient 8,9 and even ten-speed transmissions which can be used in multiple vehicle platforms.
Automotive Torque Converter Market Leaders
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Aisin
-
BorgWarner
-
Exedy
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ZF Friedrichshafen AG
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Valeo
- *Disclaimer: Major Players sorted in no particular order
Automotive Torque Converter Market News
- In March 2022, Aisin to supply hybrid transmission and active front spoiler for Toyota Tundra: Aisin Corporation (Aisin) announced that its hybrid transmission and active front spoiler have been adopted for the Toyota Tundra. The FR 1 Motor Hybrid Transmission is a core component of the iFORCE MAX powertrain, the first hybrid model specification powertrain added to the Tundra and is a hybridized product with a drive motor installed on a 10-speed AT as a base.
- In April 2022, Daimler Buses announced that the Mercedes-Benz Intouro K hybrid inter-city bus is available for all two-axle models with automatic transmission featuring the torque converter from the ample Intouro range. The Mercedes-Benz OM 936 engine is just as compact as the bus itself. It delivers 260 kW (354 hp) with a displacement of 7.7 liters. It is connected to the ZF Ecolife 2 automatic transmission with torque converter and a Mercedes-Benz hypoid axle.
- In July 2021, Jatco Ltd announced that it has developed the CVT-X, a new CVT for medium to large FWD vehicles, that improves environmental performance and drivability. It has overcome the 90% transmission efficiency barrier that is considered a difficult feat for CVTs. The CVT-X is designed to be suitable for turbocharged engines, actively using the engine's high-efficiency range, with hydraulic response that instantly follows torque when turbocharged, and torque converter lock-up response.
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 | North America | United States | |
| Canada | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | India | ||
| China | |||
| Japan | |||
| Rest of Asia-Pacific | |||
| Latin America | Mexico | ||
| Brazil | |||
| Argentina | |||
| Middle-East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| Rest of Middle-East and Africa | |||
| Automated manual transmission (AMT) |
| Dual- Clutch transmission (DCT) |
| Continuously Variable Transmission (CVT) |
| Others |
| Passenger Vehicles |
| Commercial Vehicles |
| North America | United States |
| Canada | |
| Rest of North America | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Spain | |
| Rest of Europe | |
| Asia-Pacific | India |
| China | |
| Japan | |
| Rest of Asia-Pacific | |
| Latin America | Mexico |
| Brazil | |
| Argentina | |
| Middle-East and Africa | United Arab Emirates |
| Saudi Arabia | |
| Rest of Middle-East and Africa |
Automotive Torque Converter Market Research 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 (2025-2030)
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.
Which is the fastest growing region in Automotive Torque Converter Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Automotive Torque Converter Market?
In 2025, the North America accounts for the largest market share in Automotive Torque Converter Market.
What years does this Automotive Torque Converter Market cover?
The report covers the Automotive Torque Converter Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Automotive Torque Converter Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Automotive Torque Converter Industry Report
Statistics for the 2025 Automotive Torque Converter market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Torque Converter analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
