Torque Converter Market

Torque Converter Market Size (2023 - 2028):

The Global Torque Converter Market was worth US$ 7.96 billion in 2022 and is anticipated to reach a valuation of US$ 10.74 billion by 2028 and is predicted to register a CAGR of 5.26% during 2023-2028.

Market Overview:

The torque converter in a programmed transmission fills a comparable need as a grip in a manual transmission. The interest in torque converters is legitimately identified with the expanded utilization of programmed transmission in current vehicles. The main characteristics of a torque converter are its ability to multiply the torque when there is a substantial difference between the input and the output of motor rotation. Torque is a sort of pressure-driven coupling that depends on the hydrodynamic liquid to permit the motor to work autonomously of the transmission.

The torque converter market is driven by the strong penetration of automatic transmission (AT) in mid and high-end cars. In addition, the increasing penetration of continuously variable transmission (CVT) in mid-tier vehicles is supposed to boost the developing market. The growing demand for luxury, comfort, and convenience is driving technological advances in the market.

Market Drivers:

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.

Market Restraints:

The torque converter is more expensive than the conventional gearbox because it is advanced technology. The torque converter with its components such as the turbine, impeller, and vaned stator offers less possibility of repair as it is a sealed unit.

TORQUE CONVERTER MARKET REPORT COVERAGE:

Market Segmentation:

Torque Converter Market - By Automatic Transmission Type:

• AMT (Automated Manual Transmission)
• DCT (Dual-Clutch Transmission)
• CVT (Continuously Variable Transmission)

Expanding creation of automatic vehicles in North America offers huge potential for the global torque converter market. The expansion in the quantity of CVT-incorporated business vehicles is probably going to animate the interest in force converters. With the increasing demand for premium segment CVT vehicles in the Asia Pacific, the demand for torque converters used in CVT vehicles is likely to exceed the demand for torque converters used in AT and DCT vehicles. As a result, the CVT torque converter segment is considered the fastest-growing market, by transmission.

Torque Converter Market - By Vehicle Type:

• Passenger Car
• HCV (Heavy Commercial Vehicles)
• LCV (Low Commercial Vehicles)

The passenger car segment has a large share of the torque converter market due to the high rate of adoption of automatic transmissions in passenger cars and the increase in vehicle production. Thanks to improved technology, fully automatic utility vehicles are as fuel efficient as manual utility vehicles. The automatic transmission provides the user with a fatigue-free experience as the user does not have to make frequent gear changes. Ease of driving, especially in heavy traffic, creates a demand for automatic transmission. Over the years, many of the major automotive companies have focused on technologies to improve the automatic transmission of commercial vehicles.

Torque Converter Market - By End Users:

• Original Equipment Manufacturer (OEM)
• Aftermarket 
• The OEM segment has a large market share due to increased vehicle production around the world.

Market Regional Analysis: 

The Global Torque Converter Market Report includes the segmentation of regions:

• North America
• Europe
• Asia-pacific
• Middle-east and Africa
• Latin America

The Americas are expected to have a notable share in the global torque converter market, as the adoption of automatic transmission in medium and heavy-duty trucks is observed on a larger scale in their region. As one of the leading manufacturers of AT vehicles, North America has a significant number of passengers equipped with automatic transmission systems, so it is expected to remain a leading region in the torque converter market during the forecast period. The demand for CVT vehicles in developing countries such as China and India is increasing. Because of the expanded creation of programmed vehicles and developing interest in CVT vehicles, Asia-Pacific is relied upon to be the biggest torque converter market by 2025.

Impact of Covid-19 On the Torque Converter Market:

The auto industry forecasts a loss of 7.5 lakh of production units and $ 2 billion in revenue in March alone due to closings to combat the Covid-19 pandemic. Production is nearly stagnant as state governments have imposed closures and companies themselves have closed their factories to help break the chain of the coronavirus transmission. And, more than half a dozen industry leaders and experts said that even an improvement in the COVID-19 situation would not bring much relief to the industry in April, as consumer confidence would take a while to back to normal.

Market Recent Developments:

• The Chinese branch of German auto parts manufacturer Schaeffler pulled its millionth torque converter off the assembly line at the Taicang plant. Not only do torque converters provide vehicles with more torque during acceleration, but they also effectively dampen torsional vibrations from the engine and transmission, so power is transferred more easily, efficiently, and quickly to the wheels.
• ZF intelligently designed a new generation 8-speed automatic transmission for hybrid transmissions.
• Japanese clutch maker Exedy Corp. spends around 10 billion yen ($ 87 million) to expand its business in Shanghai to meet the growing demand for automatic transmissions in China.

Market Key Players:

1. Schaeffler (Germany)
2. ZF (Germany)
3. Aisin (Japan)
4. EXEDY (Japan)
5. BorgWarner (US)
6. Valeo (France)
7. Volkswagen Group (Germany)
8. Mercedes-Benz (Germany)
9. Ford (US)
10. Hyundai (South Korea)
11. Toyota (Japan)
12. TATA (India)
13. India (ACMA)
14. Japan Automotive Manufacturers Association (JAMA)
15. European Automobile Manufacturers' Association (ACEA)
16. Canadian Vehicle Manufacturers' Association.