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Automotive Torque Converter Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, Japan, UK - Size and Forecast 2024-2028

Automotive Torque Converter Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, Japan, UK - Size and Forecast 2024-2028

Published: Jul 2024 148 Pages SKU: IRTNTR70025

Market Overview at a Glance

$1.26 B
Market Opportunity
4.5%
CAGR
4.23
YoY growth 2023-2024(%)

Automotive Torque Converter Market Size 2024-2028

The automotive torque converter market size is forecast to increase by USD 1.26 billion at a CAGR of 4.5% between 2023 and 2028.

  • The market is experiencing significant growth due to the globalization of the automotive industry, leading to increased demand for automatic transmission vehicles In the Asia-Pacific region. Another key trend is the increasing number of gears in transmissions, providing wider ratios for enhanced power and torque performance. However, there are challenges to consider, such as the preference for cars with manual transmissions in European economies. This market analysis report delves into these factors and more, offering insights into the current state and future direction of the market.

    • What will be the Size of the Automotive Torque Converter Market During the Forecast Period?

    Automotive Torque Converter Market Size

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  • The market encompasses power train mechanisms, such as automatic transmissions and dual clutch transmissions, utilized in luxury vehicles and passenger vehicles. Torque converters, a type of fluid coupling device, facilitate smooth acceleration and seamless gear shifting In these automobiles. Market dynamics are influenced by factors including the increasing demand for vehicle performance and fuel efficiency, as well as stricter pollution regulations and government mandates. Automatic transmission automobiles, including trucks, continue to dominate the market due to their convenience and ease of use. Advancements in automated manufacturing processes have led to the production of more efficient and durable torque converters, incorporating components like clutch plates, dampers, impellers, turbines, and stators.
  • The integration of continuously variable transmissions and automated manual transmissions further enhances fuel efficiency and reduces pollution. Overall, the torque converter market is expected to experience steady growth, driven by consumer preferences for improved engine torque, fuel efficiency, and compliance with pollution rules.

    • How is this Automotive Torque Converter Industry segmented and which is the largest segment?

    The automotive torque converter industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

    • Application
      • Passenger cars
      • Commercial vehicles
    • Geography
      • North America
        • US
      • Europe
        • Germany
        • UK
      • APAC
        • China
        • Japan
      • South America
        • Middle East and Africa

        By Application Insights

        • The passenger cars segment is estimated to witness significant growth during the forecast period.

        The market is experiencing significant growth due to the increasing demand for automatic transmission vehicles, particularly passenger cars. In 2023, passenger cars accounted for the largest market share, driven by their widespread use for average transportation needs. Automatic hydraulic transmissions and continuously variable transmissions (CVTs) in passenger cars are key contributors to market growth. Commercial vehicles, including light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs), hold smaller market shares as they are primarily used for commercial purposes. The market is influenced by various factors, including vehicle performance, fuel efficiency, pollution regulations, and government mandates. Electric vehicle integration, hybrid systems, and autonomous driving technology are also emerging trends.

        Automotive original equipment manufacturers (OEMs) are continuously innovating to meet the evolving demands of vehicle owners and fleet operators, focusing on automated manufacturing processes and advanced transmission technologies, such as clutch plates, dampers, impellers, turbines, and stators.

        Automotive Torque Converter Market Size

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        The Passenger cars segment was valued at USD 3.04 billion in 2018 and showed a gradual increase during the forecast period.

        Regional Analysis

        • APAC is estimated to contribute 59% to the growth of the global market during the forecast period.

        Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

        Automotive Torque Converter Market Share by Geography

        For more insights on the market share of various regions, Request Free Sample

        The North American automotive market is experiencing technological advancements, particularly in automotive electronics and electricals, driving the demand for torque converters. North American automobile manufacturers are at the forefront of technology adoption due to increasing consumer preferences and higher per capita income. The regional torque converter market growth in North America is attributed to technological innovations and evolving consumer demands. Key applications include luxury vehicles, passenger cars, and commercial vehicles. Automatic transmission systems, such as continuously variable transmissions and dual-clutch transmissions, are major end-users. Fuel consumption and pollution regulations, as well as government mandates, are influencing market trends. Electric vehicle integration, hybrid systems, and autonomous driving technology are emerging areas of opportunity.

        Automotive OEMs, vehicle owners, fleet operators, and automated manufacturing processes are key stakeholders. The torque converter components include the clutch plate, damper, impeller, turbine, and stator. The market is expected to grow significantly due to the need for smooth acceleration, seamless gear shifting, and engine torque efficiency.

        Market Dynamics

        Our  researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

        What are the key market drivers leading to the rise In the adoption of Automotive Torque Converter Industry?

        Globalization of auto industry to increase demand for automatic transmission vehicles in APAC is the key driver of the market.

      • The market is a significant component of power train mechanisms in various vehicle types, including luxury vehicles, passenger vehicles, and commercial vehicles. Torque converters are integral to automatic transmission systems, enabling smooth acceleration and seamless gear shifting, thereby enhancing vehicle performance and fuel efficiency. The market is witnessing significant growth due to increasing demand for automatic transmission automobiles, including dual-clutch transmissions and continuously variable transmissions, in both personal and commercial applications. Government mandates and pollution regulations are driving the market, as stricter rules on fuel consumption and emissions push automakers to integrate electric vehicle technology and hybrid systems into their offerings.
      • Automotive OEMs are responding by investing in automated manufacturing processes to produce more efficient torque converters, incorporating advanced technologies such as electric motors and clutches into their designs. The torque converter market encompasses various components, including the clutch plate, damper, impeller, turbine, stator, and fluid coupling device. These components work together to transmit engine torque to the transmission, ensuring optimal vehicle performance and fuel efficiency. The market is expected to continue growing as the demand for automatic gearboxes in hybrid electric vehicles and internal combusion engine vehicles increases, and as governments and fleet operators seek to reduce their carbon footprint and improve operational efficiency.

        • What are the market trends shaping the Automotive Torque Converter Industry?

        Increasing number of gears covering wider ratios for higher power and torque performance is the upcoming market trend.

      • The market is witnessing significant growth due to advancements in power train mechanisms for passenger vehicles and luxury cars. These vehicles require seamless gear shifting and smooth acceleration, which is achieved through the integration of torque converters in automatic transmission and continuously variable transmission systems. The increasing adoption of electric vehicle integration and hybrid systems in commercial vehicles and automatic transmission automobiles is also driving market growth. Power train mechanisms have evolved from mechanical components to electronic ones, with torque converters being a crucial part of this transition. The torque converter, comprised of an impeller, turbine, stator, and clutch plate, functions as a fluid coupling device that transmits engine torque to the transmission.
      • The latest torque converters are designed to handle higher internal pressure and greater instantaneous forces, ensuring optimal vehicle performance and fuel efficiency. Government mandates and pollution regulations are pushing automotive OEMs to focus on fuel consumption reduction and emission control. The implementation of these rules is leading to the development of more advanced torque converters that improve fuel efficiency and reduce pollution. The torque converter market is expected to grow at a steady pace during the forecast period, driven by the increasing demand for automatic gearboxes in both passenger and commercial vehicles. Furthermore, the integration of autonomous driving technology and electric motors in hybrid electric vehicles is expanding the market scope.
      • The torque converter plays a vital role In these systems, ensuring a smooth transition between the internal combustion engine and electric motor. In conclusion, the torque converter market is poised for growth due to the increasing demand for fuel-efficient, high-performance transmission systems In the automotive industry.

        • What challenges does the Automotive Torque Converter Industry face during its growth?

        Preference for cars with manual transmissions in European economies is a key challenge affecting the industry growth.

      • The market is witnessing significant growth due to the increasing popularity of automatic transmission systems in passenger vehicles and luxury cars. Power train mechanisms, such as dual clutch transmission and continuously variable transmission, are becoming more prevalent, leading to improved vehicle performance and fuel efficiency. However, pollution regulations and government mandates continue to influence market trends, with a focus on reducing fuel consumption and emissions. Electric vehicle integration and hybrid systems are also driving market growth, as automotive OEMs adapt to changing consumer preferences and technological advancements. Fleet operators and vehicle owners value the smooth acceleration and seamless gear shifting provided by torque converters, making them a desirable component in automatic transmission automobiles.
      • Commercial vehicles, including trucks, are also adopting automatic gearboxes to enhance efficiency and productivity. Automated manufacturing processes have led to the development of advanced torque converter components, such as clutch plates, dampers, impellers, turbines, and stators. Despite these advancements, some developed economies still prefer internal combustion engines and manual transmissions, offering a unique driving experience. Overall, the torque converter market is expected to continue expanding as technology and consumer demands evolve.

        • Exclusive Customer Landscape

        The automotive torque converter market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the automotive torque converter market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

        Automotive Torque Converter Market Share by Geography

         Customer Landscape

        Key Companies & Market Insights

        Companies are implementing various strategies, such as strategic alliances, automotive torque converter market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.

        AISIN CORP. - The automotive industry witnesses the emergence of advanced torque converter technologies, including 1 Motor Hybrid Transmission and RWD Multi Stage Hybrid Transmission. These innovations cater to the evolving market demands for improved fuel efficiency, enhanced performance, and seamless power transfer in various vehicle applications. The 1 Motor Hybrid Transmission integrates an electric motor into the torque converter, allowing for energy recovery during overrun conditions and boosting overall system efficiency. Conversely, the RWD Multi Stage Hybrid Transmission employs multiple stages to optimize torque conversion and provide a more responsive driving experience. These developments underscore the industry's commitment to delivering cutting-edge solutions that cater to the ever-evolving automotive landscape.

        The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

        • AISIN CORP.
        • BorgWarner Inc.
        • Continental AG
        • Dynamic Manufacturing Inc.
        • EXEDY Corp.
        • Robert Bosch GmbH
        • Schaeffler AG
        • Sonnax Transmission Co. Inc.
        • SUBARU Corp.
        • Transtar Industries Inc.
        • Valeo SA
        • Voith GmbH and Co. KGaA
        • Yutaka Giken Co. Ltd.
        • ZF Friedrichshafen AG

        Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

        Research Analyst Overview

        The torque converter market encompasses power train mechanisms that transmit engine torque to the transmission in automotive applications. These mechanisms play a crucial role in enabling smooth acceleration and seamless gear shifting in both passenger vehicles and commercial vehicles. The demand for torque converters is driven by several factors, including the increasing popularity of automatic transmissions and the integration of electric vehicle technology. Automatic transmissions have gained significant traction in recent years, particularly In the luxury vehicle segment. These transmissions offer enhanced vehicle performance and improved fuel efficiency, making them a preferred choice among consumers. Torque converters are an essential component of automatic transmissions, facilitating the transfer of engine torque to the transmission without the need for manual gear shifts.

        Moreover, the integration of electric vehicle technology and hybrid systems in automobiles has led to the evolution of torque converters. In electric vehicles, torque converters function as fluid coupling devices, enabling the seamless integration of internal combustion engines and electric motors. In hybrid systems, they facilitate the transfer of torque between the engine and electric motor, ensuring optimal vehicle performance. The automotive industry's shift towards autonomous driving technology is another factor driving the growth of the torque converter market. Autonomous vehicles require advanced power train mechanisms to ensure optimal performance and efficiency. Torque converters play a vital role in enabling smooth acceleration and seamless gear shifting In these vehicles, making them an essential component of the power train.

        Fleet operators and vehicle owners also prioritize fuel efficiency and reduced pollution In their purchasing decisions. Torque converters contribute to improved fuel efficiency by facilitating optimal power transfer between the engine and transmission. Additionally, the integration of torque converters in advanced automatic transmissions helps reduce pollution by minimizing gear shifts and optimizing engine performance. The production of torque converters involves complex manufacturing processes, including the use of clutches, damper assemblies, impellers, turbines, and stators. Automated manufacturing processes have become increasingly prevalent In the industry, enabling the mass production of high-quality torque converters with consistent performance. In conclusion, the torque converter market is driven by several factors, including the increasing popularity of automatic transmissions, the integration of electric vehicle technology, and the demand for improved vehicle performance and fuel efficiency.

        The market is expected to continue growing as the automotive industry evolves towards advanced power train mechanisms and autonomous driving technology.

        Market Scope

        Report Coverage

        Details

        Page number

        148

        Base year

        2023

        Historic period

        		 2018-2022

        Forecast period

        2024-2028

        Growth momentum & CAGR

        Accelerate at a CAGR of 4.5%

        Market growth 2024-2028

        USD 1263.8 million

        Market structure

        Fragmented

        YoY growth 2023-2024(%)

        4.23

        Key countries

        US, China, Germany, Japan, and UK

        Competitive landscape

        Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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        What are the Key Data Covered in this Automotive Torque Converter Market Research and Growth Report?

        • CAGR of the Automotive Torque Converter industry during the forecast period
        • Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
        • Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
        • Accurate predictions about upcoming growth and trends and changes in consumer behaviour
        • Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
        • Thorough analysis of the market’s competitive landscape and detailed information about companies
        • Comprehensive analysis of factors that will challenge the automotive torque converter market growth of industry companies

        We can help! Our analysts can customize this automotive torque converter market research report to meet your requirements.

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        Table of Contents not available.

        Research Methodology

        Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

        INFORMATION SOURCES

        Primary sources

        • Manufacturers and suppliers
        • Channel partners
        • Industry experts
        • Strategic decision makers

        Secondary sources

        • Industry journals and periodicals
        • Government data
        • Financial reports of key industry players
        • Historical data
        • Press releases

        DATA ANALYSIS

        Data Synthesis

        • Collation of data
        • Estimation of key figures
        • Analysis of derived insights

        Data Validation

        • Triangulation with data models
        • Reference against proprietary databases
        • Corroboration with industry experts

        REPORT WRITING

        Qualitative

        • Market drivers
        • Market challenges
        • Market trends
        • Five forces analysis

        Quantitative

        • Market size and forecast
        • Market segmentation
        • Geographical insights
        • Competitive landscape

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        Frequently Asked Questions

        Automotive Torque Converter market growth will increase by $ 1263.8 mn during 2024-2028.

        The Automotive Torque Converter market is expected to grow at a CAGR of 4.5% during 2024-2028.

        Automotive Torque Converter market is segmented by Application( Passenger cars, Commercial vehicles)

        AISIN CORP., BorgWarner Inc., Continental AG, Dynamic Manufacturing Inc., EXEDY Corp., Robert Bosch GmbH, Schaeffler AG, Sonnax Transmission Co. Inc., SUBARU Corp., Transtar Industries Inc., Valeo SA, Voith GmbH and Co. KGaA, Yutaka Giken Co. Ltd., ZF Friedrichshafen AG are a few of the key vendors in the Automotive Torque Converter market.

        APAC will register the highest growth rate of 59% among the other regions. Therefore, the Automotive Torque Converter market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.

        US, China, Germany, Japan, UK

        • Globalization of auto industry to increase demand for automatic transmission vehicles in APACThe globalization of the auto industry has had a huge impact on APAC. OEMs across the globe are focusing on the potential markets and are expanding their operations to the potential markets. APAC is considered and recognized as the fastest-growing auto industry is the driving factor this market.
        • attracting OEMs from across the globe to expand their operations and set up plants in the countries such as China is the driving factor this market.
        • India is the driving factor this market.
        • Japan is the driving factor this market.
        • and many other Asian countries. Owing to the vibrant economic situation of the countries in this region is the driving factor this market.
        • APAC is one of the fastest-growing and largest automotive markets globally. Governments of Asian countries have played a critical role in encouraging the automotive industry in the form of tax and fiscal incentives. For instance is the driving factor this market.
        • the Thai government is the driving factor this market.
        • to encourage the automotive components industry is the driving factor this market.
        • has granted exemption on import duties and an eight-year tax exemption for 11 categories of vehicle components that include tires is the driving factor this market.
        • liquid natural gas (LNG) cylinders is the driving factor this market.
        • engine components is the driving factor this market.
        • and powertrain components. APAC has become a prime offshore location for automotive manufacturing due to its government incentives and cost and raw material advantages. Asian countries such as Indonesia is the driving factor this market.
        • China is the driving factor this market.
        • Thailand is the driving factor this market.
        • India is the driving factor this market.
        • South Korea is the driving factor this market.
        • and Vietnam are the major producers of raw materials such as rubber and bullion materials is the driving factor this market.
        • with a well-established supply chain network. Additionally is the driving factor this market.
        • this region is considered one of the largest pools of experienced talent for the automotive industry. The major advantage is the low cost of labor in these countries compared with the developed countries such as Europe and the US. Countries like China is the driving factor this market.
        • India is the driving factor this market.
        • and Japan have well-established auto value chains is the driving factor this market.
        • with the presence of numerous component suppliers. Such countries also have cost-effective operational structures is the driving factor this market.
        • which increases the profit margins for OEMs. The large volume demand is also one of the factors that aid in increasing profit margins and low-cost manufacturing. Due to these advantages is the driving factor this market.
        • OEMs are incorporating advanced technologies is the driving factor this market.
        • including CVTs and torque converters is the driving factor this market.
        • into their vehicles. Thus is the driving factor this market.
        • the globalization of the auto industry is expected to increase the demand for automatic transmission vehicles is the driving factor this market.
        • which will fuel the growth of the global automotive torque converter market during the forecast period. is the driving factor this market.

        The Automotive Torque Converter market vendors should focus on grabbing business opportunities from the Passenger cars segment as it accounted for the largest market share in the base year.