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 Size 2024-2028

The automotive torque converter market size is estimated to grow by USD 1.26 billion at a CAGR of 4.5% between 2023 and 2028. The globalization of the automobile industry has significantly impacted the Asia Pacific region, leading to an increased demand for automatic transmission vehicles. This trend is driven by several factors, including the rising demand for automatic transmission systems and the growing preference for fuel-efficient vehicles. Automatic transmissions offer smoother driving experiences and improved fuel economy, making them increasingly popular among consumers in the APAC market. As a result, automakers are investing heavily in research and development to produce more efficient and cost-effective automatic transmission systems. This shift towards automatic transmissions is expected to continue, as consumers in the region seek more convenient and eco-friendly driving options. In summary, the globalization of the auto industry, coupled with the increasing demand for fuel-efficient vehicles, is driving the growth of automatic transmission systems in the Asia Pacific market.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is a significant segment in the power train mechanisms industry, focusing on the production and sales of torque converters for luxury vehicles and passenger vehicles. Torque converters are essential components in automatic transmission systems, enabling smooth acceleration and seamless gear shifting in vehicles. These fluid coupling devices consist of an impeller, turbine, and stator, which transmit engine torque to the transmission, ensuring optimal vehicle performance. Fuel consumption and pollution regulations have influenced the market's growth, with an increasing focus on fuel efficiency and compliance with pollution rules. Automakers are investing in continuously variable transmission and dual clutch transmission systems to meet these demands. Automated manufacturing processes are also being employed to enhance production efficiency and reduce costs. Key components of torque converters include clutches, damper, and impeller, among others. Government mandates and industry standards continue to shape the market, with a focus on improving engine torque and reducing gear shifts in automatic transmission automobiles. The market is expected to grow significantly in the coming years, with applications in trucks and other heavy-duty vehicles. 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.

Key Market Driver

Globalization of auto industry to increase demand for automatic transmission vehicles in APAC is notably driving market growth. The market in APAC is experiencing significant growth due to the globalization of the auto industry and the region's status as the fastest-growing and largest automotive market worldwide. OEMs from various parts of the globe are expanding their operations in APAC, particularly in countries like China, India, and Japan, driven by favorable economic conditions.

Furthermore, government incentives in the form of tax breaks and fiscal policies have further encouraged the growth of the automotive industry in the region. The torque converter market in APAC is characterized by the presence of key players such as the Turbine and Stator. These companies are focusing on innovation and technological advancements to meet the increasing demand for efficient and high-performance torque converters in the region. The market is expected to continue its growth trajectory in the coming years, driven by the increasing production of automobiles and the growing preference for automatic transmissions in the region. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Increasing number of gears covering wider ratios for higher power and torque performance is the key trend in the market. The global automotive industry is undergoing a transformation, with advancements in internal combustion engine designs and configurations. A powertrain comprises the engine, transmission, and drivetrain of a vehicle, serving to deliver power to automobiles. Traditional transmission systems were characterized by numerous mechanical components.

However, the advent of superior technologies has led to the replacement of mechanical components with electronic ones, thereby enhancing the efficiency of vehicular transmission systems. It is anticipated that electronic components in the powertrain will account for approximately 45% of the total composition in both gasoline and diesel vehicles during the forecast period. These technological advancements have enabled manufacturers to create transmission systems capable of managing higher internal pressure and instantaneous forces. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Preference for cars with manual transmissions in European economies is the major challenge that affects the growth of the market. The market is witnessing significant growth due to advancements in automatic transmission systems. These innovations have led to improvements in design, performance, and reliability, making automatic transmission vehicles more efficient and attractive to consumers. This trend is particularly prominent in developed countries where the sales of automatic transmission vehicles are on the rise.

However, some developed economies continue to prefer manually operated vehicles, valuing the traditional driving experience. Notable markets for automatic transmission vehicles include North America, Japan, and Australia, where the penetration rate is high. Despite this, the torque converter market is expected to expand as technological advancements continue to enhance the efficiency and appeal of automatic transmission systems. Hence, the above factors will impede the growth of the market during the forecast period

Key Market Customer Landscape

The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Aisin Corp. - The company offers automotive torque converters such as 1 motor hybrid transmission and RWD Multi Stage Hybrid Transmission. 

The market research and growth report also 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 market 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.

Market Segmentation

By Application 

The Passenger cars segment is estimated to witness significant growth during the forecast period. The global market is experiencing significant growth due to the increasing demand for automatic transmission vehicles, particularly in luxury and passenger segments. Power train mechanisms in both automatic transmission automobiles, including dual clutch transmission and continuously variable transmission systems, rely on torque converters for smooth acceleration and seamless gear shifting.

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The Passenger cars segment was the largest segment and was valued at USD 3.03 billion in 2018. In 2023, passenger vehicles dominated the market, accounting for the largest share, due to their widespread use for average transportation needs in households. Commercial vehicles, including trucks and buses, hold a smaller share as they are primarily used for commercial purposes. Government mandates and pollution regulations have driven the integration of torque converters in electric and hybrid vehicles, such as hybrid electric vehicles and autonomous driving technology. These vehicles aim to improve fuel efficiency and reduce emissions, making them more environmentally friendly. Automotive OEMs are investing in automated manufacturing processes to increase production efficiency and reduce costs. Torque converters function as fluid coupling devices that transmit engine torque to the transmission input shaft. They consist of a clutch plate, impeller, and damper. The use of advanced materials and technologies in the production of torque converters has led to improved performance and durability. The market is expected to continue growing as vehicle owners and fleet operators seek to enhance vehicle performance and fuel efficiency while complying with pollution rules.

By Region

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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.

Torque converters are essential power train mechanisms in automatic transmission automobiles, including luxury vehicles and passenger vehicles. These fluid coupling devices facilitate smooth acceleration by transmitting engine torque to the transmission, ensuring seamless gear shifting. With increasing focus on fuel efficiency and pollution regulations, automakers are integrating torque converters into dual-clutch transmissions and continuously variable transmissions. Government mandates on fuel consumption and pollution rules are driving the adoption of these advanced transmission systems in both commercial vehicles and hybrid electric vehicles. Automatic gearboxes in automatic transmission automobiles, including internal combustion engine vehicles and electric vehicles, utilize torque converters for optimal vehicle performance. The use of torque converters in hybrid systems and autonomous driving technology is also on the rise. Fleet operators and vehicle owners benefit from the improved fuel efficiency and seamless gear shifting offered by these advanced power train mechanisms. Automakers are investing in automated manufacturing processes to produce high-quality torque converters, including clutch plates, dampers, impellers, and clutches. The integration of torque converters in electric vehicles and hybrid systems is a significant trend in the automotive industry, as it enables efficient power transfer between the engine and electric motors. Overall, the market for torque converters is expected to grow significantly due to the increasing demand for automatic transmission automobiles and the need for improved vehicle performance and fuel efficiency.

Segment Overview

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

• Application Outlook
  • Passenger cars
  • Commercial vehicles

• Region Outlook 
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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.Market Analyst Overview

The market is a significant segment of the power train mechanisms industry, focusing on the production and distribution of torque converters for various vehicle types. Torque converters are essential components of automatic transmissions, found in luxury vehicles, passenger vehicles, and commercial vehicles. These fluid coupling devices facilitate smooth acceleration and seamless gear shifting, enhancing vehicle performance and fuel efficiency. The market is influenced by several factors, including fuel consumption, pollution regulations, and government mandates. Automotive Original Equipment Manufacturers (OEMs) are continually innovating to meet pollution rules and improve fuel efficiency. As a result, there is a growing trend towards the integration of electric vehicles, hybrid systems, and autonomous driving technology. Torque converters are crucial for automatic transmission automobiles, including dual-clutch transmissions and continuously variable transmissions.

Furthermore, these power train mechanisms are increasingly popular due to their fuel efficiency and smooth operation. In addition, the market for torque converters in commercial vehicles, such as trucks, is expanding due to automated manufacturing processes and the need for reliable transmission systems. As the automotive torque converter industry evolves with the integration of dual-clutch transmission and electric vehicle integration, government rules are increasingly shaping the development and use of fluid coupling device in both passenger and commercial cars, traditionally powered by internal combustion engines. The market caters to vehicle owners and fleet operators, providing them with high-quality automatic gearboxes for their internal combustion engine vehicles and hybrid electric vehicles. The market comprises several key players, including Automotive OEMs, and component manufacturers that specialize in clutches, damper, impeller, and other torque converter parts. In conclusion, the market is a dynamic and evolving industry that plays a vital role in the development of advanced power train mechanisms for various vehicle types. With a focus on fuel efficiency, pollution regulations, and innovation, the market is poised for continued growth in the coming years.

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What are the Key Data Covered in this Market Report?

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