The Torque Converter Market size was valued at USD 2.96 Billion in 2023. The torque converter industry is projected to grow from USD 3.13 Billion in 2024 to USD 4.64 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.03% during the forecast period (2024 - 2032). The increased demand for luxury and passenger vehicles in developed countries and the advancement of torque converters in power train mechanisms are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for torque converters is being driven by the growing demand for passenger cars and luxurious vehicles in the developed parts of the globe is significantly increasing the deployment of the duel clutch and automatic transmission systems along with torque convertors in the vehicles. The deployment of these advanced systems results in effortless driving and reduces efforts over jammed stop-and-go conditions. The high demand for such advanced systems drives the torque converter market revenue growth.
Additionally, the rising use of automatic transmissions in modern vehicles has boosted the demand for torque converters. The capacity of a torque converter to multiply torque when there is a significant disparity between the input and output of the engine's rotation is one of its most important features. Torque is a fluid coupling that uses a fluid hydrodynamic to allow the engine and transmission to spin independently. Manufacturers are attempting to improve a torque converter's operational efficiency, and recent breakthroughs in automatic torque converter technology are propelling the market forward.
The torque converters run quietly and help reduce fuel consumption as lag is reduced due to the lack of manual gear shifting. The increasing demand for comfort has led to developments in automatic transmissions and continuously variable transmissions (CVT), which has led to the demand for torque converters. The torque converter requires little maintenance and less frequency to replenish transmission fluid because it is a sealed unit. Pollution regulations and government mandates have led manufacturers to develop fuel-saving technologies. The use of a torque converter improves fuel combustion by achieving optimal torque ratios. The automotive torque converter market is expected to grow due to the increasing demand for fuel-saving technologies. The torque converter developed by Nissan Motor Corporation reduces transmission time by 30%, resulting in a smoother ride and lower fuel consumption. Furthermore, the market for automotive torque converters is supposed to grow due to rising consumer demand for better handling and comfort.
Moreover, active engagement of key players and automotive OEMs launching the latest car models with these torque converter technologies to attract consumers drives the market growth. For instance, Volkswagen unveiled the 2022 Virtus in India with some changes compared to the model 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, coupled to either a 6-speed torque converter automated transmission or a 6-speed manual. The 1.5L turbo petrol engine will produce 150PS of power and 250Nm of torque, coupled to either a 7-speed dual-clutch automated transmission or a 6-speed manual.
The Torque Converter Market segmentation, based on type, includes automatic transmission, continuously variable transmission, and dual-clutch transmission. The automatic transmission segment dominated the market, accounting for 35% of market revenue (1.04 Billion). In developing economies, category growth is driven by the increasing adoption of automatic transmissions in commercial vehicles. The automatic transmission provides the user with a fatigue-free experience as the user is free from frequent gear shifting. However, dual-clutch transmission is the fastest-growing category due to various major key players' launch of new dual-clutch models in passenger vehicles.
The Torque Converter Market segmentation, based on vehicle type, includes passenger vehicles and commercial vehicles. The commercial vehicle category generated the most income (70.4%) due to recent technological advancements in commercial vehicles. These technological advancements in the field of automotive torque converter manufacturing in weight and size reduction are assisting in the growth of the market over the forecast period. However, passenger vehicle is the fastest-growing category due to the growing demand for lightweight products in passenger cars.
Figure 1: Torque Converter Market by Vehicle Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia-Pacific torque converter market will dominate this market, owing to the increased adoption of automatic transmission in passenger cars, heavy-duty commercial vehicles and medium-duty commercial vehicles. Moreover, technological advancement and easy adoption of new technology in various countries drive market growth in this region. Moreover, China’s torque converter market held the largest market share, and the Indian torque converter market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Torque Converter Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's torque converter market accounts for the second-largest market share due to increased production of luxury and high-end vehicles and increasing demand for small passenger automatic transmission cars, which has empowered the deployment of torque converter systems in this region. Further, the German torque converter market held the largest market share, and the UK torque converter market was the fastest-growing market in the European region.
The Asia-Pacific torque converter Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rising urban population, growing economies, and increasing purchasing power of individuals in this region. Moreover, the US torque converter market held the largest market share, and the Canadian torque converter market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the torque converter market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the torque converter industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global torque converter industry to benefit clients and increase the market sector. Major players in the torque converter market, including Infineon Technologies AG, NXP Semiconductors NV, Texas Instruments, Inc., Toshiba Corp., Intel Corporation, Maxim Integrated, Broadcom Inc., Qualcomm Inc., and others, are attempting to increase market demand by investing in research and development operations.
Aisin Corp, formerly Aisin Seiki Co Ltd, manufactures, develops and sells automobile parts and products related to lifestyle, wellness and energy. The firm offers a huge range of its development, including drivetrain, engine-related products, brake and chassis, aftermarket products, sewing machines, beds, gas heat pump products, housing and audio-related equipment, cogeneration system, etc. The company also carries out the processing of fiber lasers. Aisin provides a wide range of products covering approximately all automotive components. 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.
Daimler Truck Holding AG is an automobile company. It develops, manufactures and distributes light, medium and heavy-duty trucks, city and intercity buses, coaches and bus chassis. The organization also provides financing, leasing, fleet management, insurance and mobility services. Daimler markets its offerings under various brands, including Mercedes-Benz, Freightliner, Western Star, FUSO, BharatBenz, Thomas Built Buses and Setra. The company has production, distribution, sales and other facilities in North America, South America, Europe, Asia-Pacific and Africa regions. 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 information with a torque converter and a Mercedes-Benz hypoid axle.
July 2021: Jatco Ltd announced that it had developed the CVT-X, a new CVT for medium to large FWD vehicles that improve 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 the hydraulic response that instantly follows torque when turbocharged and torque converter lock-up response.
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 is the Maruti Suzuki Ciaz, which uses a 4-speed AT.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.96 Billion |
| Market Size 2024 | USD 3.13 Billion |
| Market Size 2032 | USD 4.64 Billion |
| Compound Annual Growth Rate (CAGR) | 5.03% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Vehicle Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Infineon Technologies AG, NXP Semiconductors NV, Texas Instruments, Inc., Toshiba Corp., Intel Corporation, Maxim Integrated, Broadcom Inc., Qualcomm Inc., Analog Devices, Inc., Advanced Micro Devices, Microchip Technology, Inc., Monolithic Power Systems, Inc., Samsung Semiconductor, Inc., and SK Hynix Inc. |
| Key Market Opportunities | increased demand for luxury and passenger vehicles around the globe |
| Key Market Dynamics | The advancement of torque converters in power train mechanisms. |
Torque Converter Market Highlights:
Frequently Asked Questions (FAQ) :
The Torque Converter Market size was valued at USD 2.8 Billion in 2022.
The global market is projected to grow at a CAGR of 5.78% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Texas Instruments, Inc., Toshiba Corp., Intel Corporation, Maxim Integrated, Broadcom Inc., Qualcomm Inc., Monolithic Power Systems, Inc., Samsung Semiconductor, Inc., and SK Hynix Inc.
The automatic transmission category dominated the market in 2022.
The passenger vehicle had the largest share in the global market.
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