Automotive Torque Converter Market by Type, Vehicle Type, Electric Vehicle & Region for 2024-2031

Automotive Torque Converter Market Valuation - 2024-2031

The automotive torque converter industry is expanding due to rising demand for automatic transmission automobiles. Torque converters improve vehicle performance and fuel efficiency by allowing for the seamless transfer of power from the engine to the transmission. This market's expansion is driven by technological advancements and increasing consumer preferences for comfort and convenience. This is likely to enable the market size surpass USD 7.93 Billion valued in 2023 to reach a valuation of aroundUSD 11.08 Billion by 2031.

Furthermore, the market benefits from the expanding automobile industry in emerging markets. Increasing manufacturing of passenger and commercial cars, combined with tight pollution rules requiring efficient powertrains, drives demand for torque converters. Key players are focused on innovation and strategic alliances to develop enhanced goods, which is driving market growth. The rising demand for automotive torque converter is enabling the market grow at aCAGR of 4.28% from 2024 to 2031.

Automotive Torque Converter Market: Definition/ Overview

An automotive torque converter is a fluid coupling device that sits between the engine and the transmission in automatic vehicles. It distributes rotating power from the engine to the transmission, allowing for smooth acceleration by doubling torque, as well as running the engine while the vehicle is stationary.

These type of converters transfer engine power to the transmission, allowing for smooth acceleration, increase in engine torque and the ability for automobiles to start and stop without stalling. They increase fuel efficiency and allow seamless gear shifting, which is essential in automatic transmission systems.

Automotive torque converters will be used in the future to improve fuel efficiency, enhance vehicle performance, support electric vehicle (EV) integration, enable smoother power transmission in hybrid systems, and advance autonomous driving technology by providing reliable and adaptive power management solutions.

What's inside a VMR industry report?

Our reports include actionable data and forward-looking analysis that help you craft pitches, create business plans, build presentations and write proposals.

Will Rising Demand for Fuel Efficiency Increase Sales of the Automotive Torque Converter?

The growing demand for fuel efficiency is a major driver of the automotive torque converter market. As worldwide laws tighten and consumer preferences shift toward more fuel-efficient vehicles, automakers are increasingly turning to innovative transmission technologies, such as torque converters, to meet these objectives. According to a variety of sources, including the United States Environmental Protection Agency (EPA) and the United States Department of Energy, advanced torque converters can improve fuel efficiency by 4-8% when compared to regular transmissions. This change is confirmed by data indicating a significant increase in the global deployment of modern transmission technology such as lock-up torque converters, which improve efficiency.

Furthermore, regulatory authorities such as the U.S. National Highway Traffic Safety Administration (NHTSA) and industry publications from businesses such as ZF Friedrichshafen AG emphasize the importance of torque converters in meeting tight fuel economy criteria and lowering CO2 emissions. The European market is also seeing significant reductions in CO2 emissions from passenger automobiles as a result of the adoption of more efficient powertrain technologies, highlighting the role of torque converters in meeting environmental goals. Overall, the trend toward fuel efficiency is expected to increase demand for sophisticated torque converters, establishing them as critical components in the automotive industry's quest for sustainability and efficiency.

Will High Replacement and Repair Costs Restrain the Automotive Torque Converter Market?

High replacement and repair costs for vehicle torque converters can limit market expansion. Torque converters are complex components that must be manufactured with precision, which results in expensive replacement and repair costs. This financial burden may dissuade vehicle owners and fleet operators from purchasing vehicles equipped with modern torque converters, particularly in price-sensitive markets.

Furthermore, the labor-intensive procedure of replacing or repairing torque converters drives up the overall cost. As a result, customers may favor automobiles with simpler, less expensive transmission systems or postpone maintenance, thereby affecting market demand for torque converters. Despite their benefits in improving fuel efficiency and vehicle performance, the high expenses associated with maintaining torque converters may limit their widespread use and slow market expansion in certain segments.

Category-Wise Acumens

Will Increasing Demand for Seamless Gear Shifts and Ease of Use Drive the Type Segment?

The growing need for seamless gear shifts and convenience of use is likely to boost the expansion of the automatic transmission sector within the torque converter market. Automatic gearboxes are popular because they give smooth, effortless driving experiences, which appeals to a wide spectrum of users, including those in metropolitan areas and commercial fleets. This choice is especially prominent in North America and Asia-Pacific, where automatic transmissions meet consumer expectations and driving conditions.

Furthermore, advances in technology are improving the efficiency and performance of automatic gearboxes, making them more appealing. As a result, the increased customer demand for greater driving pleasure and operating simplicity is expected to boost the adoption of automatic gearboxes, therefore pushing the type segment's growth.

Will Increasing Adoption of HEVs Drive the Hybrid Electric Vehicles Segment?

The growing popularity of hybrid electric vehicles (HEVs) is a major driver of growth in the automotive torque converter market. Torque converters improve fuel efficiency and performance in HEVs, which combine internal combustion engines and electric motors. As customers and automakers prioritize sustainability and fuel efficiency, HEVs provide an appealing blend of lower emissions and longer range without the need for frequent recharge. Regulatory demands and incentives for lower emissions have accelerated HEV uptake. As a result, the need for improved torque converters in HEVs is increasing, as they play an important role in improving powertrain performance and economy. This growing demand for HEVs is likely to create significant growth in the torque converter market, reinforcing the segment's dominance.

Country/Region Wise Acumens

Will Increasing Strong Automotive Industry Infrastructure Drive the Market in North America?

North America's robust automotive industry infrastructure considerably drives the automotive torque converter market. North America, notably the United States, boasts a well-established automotive sector that includes advanced production facilities, a strong supply chain and top automotive OEMs. This infrastructure enables intensive research and development, promoting innovation in automotive technologies such as torque converters.

The presence of major automakers and transmission manufacturers in the region promotes the rapid adoption of modern torque converter technology, which improve vehicle performance and fuel efficiency. Furthermore, strict fuel economy rules and pollution standards in North America compel automakers to use efficient torque converters to achieve these requirements.

Furthermore, the rising demand for passenger and commercial cars, combined with consumer preference for automatic gearboxes, drives growth in the torque converter industry. This is solid automotive foundation ensures that North America remains a dominant region, driving continuous growth and technological advancements in the torque converter market.

Will Growing Demand for Fuel-Efficient Vehicles Drive the Market in Asia Pacific Region?

The automotive torque converter market in Asia Pacific is being driven primarily by a growing need for fuel-efficient vehicles. Vehicle manufacturing and sales are increasing significantly in countries such as China, India, and Japan, driven by rising middle-class incomes and urbanization. This growth is accompanied by a greater awareness of environmental issues and tough government rules aimed at lowering emissions and improving fuel economy.

Consumers in Asia-Pacific are increasingly favoring fuel-efficient vehicles, resulting in a higher adoption rate of modern transmission technologies such as torque converters. These components are critical to maximizing fuel efficiency and vehicle performance, making them necessary for modern automobiles. As a result, demand for improved torque converters is likely to increase, driving market growth in the region. This trend is further supported by investments from automotive manufacturers in developing and producing more efficient and eco-friendly vehicles to meet regulatory standards and consumer preferences.

Competitive Landscape

The automotive torque converter market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the automotive torque converter market include:

Aisin Seiki Corporation, BorgWarner Inc., Continental AG, Delphi Technologies, Exedy Corporation, Isuzu Motors Ltd., Jatco Ltd, Precision Industries, Schaeffler Technologies AG & Co. Kg, Sonnax Transmission Company, Inc.

Latest Developments

In October 2023, the upcoming launch of the Kia Sonet in India in October 2023 is a source of excitement due to its innovative features, including the first-ever torque converter diesel automatic drivetrain in the subcompact SUV segment. This transmission will produce more power than its manual counterpart.