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Torque Converter Market
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Torque Converter Market

Author: Swarup Sahu - Senior Consultant, Report ID - DS2001004, Published - December 2024

Segmented in Product Type (Single-Stage, Multistage), Application (Automotive, Industrial Machinery, Marine, Aviation, Others), Material Type and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Torque Converter Market Outlook

The Torque Converter market is poised for a transformation that is reshaping the automotive industry significantly. The market, for Torque converter was estimated at $8.2 billion in 2024. It is anticipated to increase to $12.1 billion by 2030 with projections indicating a growth to around $16.7 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 6.7% over the forecast period. Playing a role in automatic transmission systems and driving improvements in vehicle performance and fuel efficiency Torque Converters are driving the global transition, from manual transmission to automatic systems.


The Torque Converter is a fluid device that helps to transmit rotational power from the engine to an automatic transmission system allowing for torque multiplication in situations where the input and output speeds differ significantly while also ensuring smooth synchronization, between the engine and the wheels rotation speeds.


Market Size Forecast & Key Insights

2019
$8.2B2024
2029
$15.7B2034

Absolute Growth Opportunity = $7.5B

The Torque Converter market is projected to grow from $8.2 billion in 2024 to $15.7 billion in 2034. This represents a CAGR of 6.7%, reflecting rising demand across Automotive, Heavy Machinery and Aerospace.

The Torque Converter market is set to add $7.5 billion between 2024 and 2034, with manufacturer targeting Industrial Machinery & Marine Application projected to gain a larger market share.

With Rise in automotive manufacturing, and Advancements in technology, Torque Converter market to expand 91% between 2024 and 2034.

Opportunities in the Torque Converter Market

Development of Heavy-Duty Transmission Systems

The increasing need for vehicles used in construction projects and agricultural activities presents a promising chance to develop strong torque converters capable of handling tough conditions effectively—a potential gateway, to exploring fresh and profitable markets ahead.

Hybrid Vehicles Boom and Industrial Automation Uptake

With the growing trend towards friendly cars gaining momentum there will be a notable rise in the need for torque converters tailored for hybrid and electric vehicles. To keep up with this shift, in the market landscape manufacturers should focus on developing cutting edge designs and technologies to meet the demands of this expanding customer base.

The continuous drive towards streamlining and automating operations is significantly boosting the torque converter markets growth trajectory as the development of torque converters geared towards improving performance and efficiency in automated industrial machinery and equipment holds great potential, for expansion.

Growth Opportunities in North America and Europe

Europe Outlook

The Torque Converter market in Europe is experiencing growth because of factors like the widespread use of advanced technologies and strict environmental regulations that emphasize the importance of efficient vehicle performance. Additionally the advancements in technology within this region and the presence of key players in the automotive industry create opportunities for expansion, in the torque converter market.

North America Outlook

In the Torque Converter market of North America holds a position thanks to the rising interest in cars powered by modern fuel saving technologies. The markets growth and competitiveness in this region are driven by known car manufacturers and advanced infrastructure. Herein lies the chance to leverage advancements and cater to consumer preferences, for more efficient vehicles.

North America Outlook

In the Torque Converter market of North America holds a position thanks to the rising interest in cars powered by modern fuel saving technologies. The markets growth and competitiveness in this region are driven by known car manufacturers and advanced infrastructure. Herein lies the chance to leverage advancements and cater to consumer preferences, for more efficient vehicles.

Europe Outlook

The Torque Converter market in Europe is experiencing growth because of factors like the widespread use of advanced technologies and strict environmental regulations that emphasize the importance of efficient vehicle performance. Additionally the advancements in technology within this region and the presence of key players in the automotive industry create opportunities for expansion, in the torque converter market.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, Germany, Japan, China, South Korea are expected to grow at 4.4% to 6.4% CAGR

2

Emerging Markets : India, Brazil, South Africa are expected to grow at 7.7% to 9.2% CAGR

Market Analysis Chart

The growth in automobile manufacturing plays a crucial role in driving the torque converter market since torque converters are essential components of a cars transmission system and their demand is directly impacted by the increase in vehicle production numbers. Furthermore the rising preference for transmission cars, over manual transmission vehicles contributes to the expansion of the torque converter market. In cars torque converters play a vital role in efficiently transferring the engines power to the transmission system.

Recent Developments and Technological Advancement

December 2024

Bosch Limited has introduced an automotive Torque Converter to tap into the expanding market potential. The product promises performance levels along, with better fuel efficiency and reduced emissions.

October 2024

Allison Transmission has introduced a line of advanced torque converters, for heavy duty use aimed at enhancing fuel efficiency and operational effectiveness.

August 2024

The Voith Group unveiled a cutting edge torque converter aimed at reducing power loss and boosting vehicle acceleration and longevity.

In light of market changes and trends worldwide in the automotive sector suggest a rising need for torque converters driven mainly by the growth of the automotive industry on a global level. The move towards vehicle electrification and the growing desire for high end luxury vehicles with transmissions have breathed new life into the torque converter market. It’s worth mentioning that technological progress in creating fuel efficient torque converters has played a key role, in driving this increased demand.

Impact of Industry Transitions on the Torque Converter Market

As a core segment of the Automotive industry, the Torque Converter market develops in line with broader industry shifts. Over recent years, transitions such as Transition Towards Electric Vehicles and Increased Adoption of Continuously Variable Transmission (CVT) have redefined priorities across the Automotive sector, influencing how the Torque Converter market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Transition Towards Electric Vehicles:

The Torque Converter market is being influenced by shifts in the automotive industry with a focus towards electric vehicles (EVs). In automotive applications with internal combustion engines torque converters are primarily utilized. However the rise of vehicles has led to a reduced dependency on torque converters as power is directly transmitted from the engine to the wheels. This shift is prompting companies, in the market to reassess their approaches and adjust to the changing landscape.

2

Increased Adoption of Continuously Variable Transmission (CVT):

One notable shift impacting the Torque Converter industry is the increasing favor towards Continuously Variable Transmissions (CVTs ), in cars.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Automotive industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Automotive industry cascade into the Torque Converter market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Rise in Automotive Manufacturing, and Increasing Popularity of Automatic Transmissions

One of the factors propelling the torque converter market forward is also the rising expansion of the automotive manufacturing sector worldwide. In response to a need for mid range cars and SUVs across the globe carmakers are also fabricating a greater number of vehicles resultng in an uptick in the need, for torque converters that play a crucial role in the operation of any vehicle equipped with an automatic transmission system.
The growing trend towards transmissions in a wide range of vehicles. From small cars to large trucks. Plays a crucial role in driving the market for torque converters forward The rising popularity of automatic transmissions due to their convenience and enhanced efficiency is also driving up the demand, for torque converters which are also essential components of any automatic transmission system.
The advancements in torque converters technology, like lock up clutches and electronic control elements are also propelling the torque converter market forward as automakers and customers alike favor these converters for their enhanced performance and fuel efficiency.

Restraint: Evolving Automobile Technologies

The paced advancements in automotive technology present a notable obstacle for the torque converter industry as electric vehicles and hybrid systems gain popularity while direct transmission technology emerges as a viable alternative, to traditional torque converters that may soon become outdated.

Challenge: High Production Costs

High manufacturing expenses pose a challenge to the expansion of the torque converter industry as they arise from the production techniques and top notch materials used in making these components. These escalated costs cut into the profit margins of torque converter manufacturers and act as a barrier, for new entrants looking to join the market and impede its overall growth.

Supply Chain Landscape

Raw Material Acquisition

Riverside Metals

Hensley Industries

Component Manufacturing

ZF Friedrichshafen

Valeo

Assembly & Testing
Schaeffler Group / EXEDY Corporation
Distribution & Sales
BorgWarner Inc
Raw Material Acquisition

Riverside Metals

Hensley Industries

Component Manufacturing

ZF Friedrichshafen

Valeo

Assembly & Testing

Schaeffler Group

EXEDY Corporation

Distribution & Sales

BorgWarner Inc

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Leading Providers and Their Strategies

Application AreaIndustryLeading ProvidersProvider Strategies
Automotive Transmissions
Automobile
BorgWarner Inc.
Application of cutting-edge technologies, ensuring improved fuel efficiency and vehicle performance
Marine Propulsion Systems
Marine
ZF Friedrichshafen AG.
Leveraging technological advancements for efficient torque conversion, coupled with rigorous safety protocols
Heavy Machinery & Industrial Equipment
Construction and Manufacturing
Schaeffler Technologies AG & Co. KG.
Incorporating innovations for efficient torque power handling, enhancing durability and reliability of heavy machinery and equipment
Aviation and Aerospace
Aviation
Allison Transmission Inc.
Focusing on R&D to offer advanced torque converter systems, prioritizing flight safety and fuel efficiency

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Torque Converter market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Torque Converter in Heavy Machinery, Automotive and Aerospace

Heavy Machinery

Torque converters are also used in heavy duty machinery like forklifts and tractors to enhance control over high load equipment and improve efficiency while minimizing wear and tear on machine components Companies such as Komatsu and Caterpillar are players, in this industry.

Automotive

Torque converters play a role in automatic transmission cars by simplifying gear shifts and keeping engine speed consistent. They offer a benefit by boosting torque when theres a significant gap between input and output speeds giving cars more strength at lower speeds. Dominant players in this industry segment include companies, like Toyota and General Motors.

Aerospace

In addition to that point of interest; torque converters are also applied in the field of aerospace technology and are specifically utilized in the construction of helicopters for purposes like transferring and controlling engine torque to the primary rotor system with a focus achieving smooth power transfer, for managing lift and speed effectively. Well known companies making use of such components include Boeing and Airbus.

Torque Converter vs. Substitutes:
Performance and Positioning Analysis

The torque converter is a part of automatic transmissions that provides seamless gear changes and improved fuel efficiency when compared to manual transmission options. Its distinct market advantage is its potential for growth, in the expanding automotive sector.

Torque Converter
  • Manual Transmission /
  • Continuously Variable Transmission (CVT)
    Provides smooth transmission, Creates torque multiplication in vehicles
    Can cause power loss, Leads to increased fuel consumption
    Higher fuel efficiency, improved manual control
    Complex mechanics for repairing, often higher upfront cost

Torque Converter vs. Substitutes:
Performance and Positioning Analysis

Torque Converter

  • Provides smooth transmission, Creates torque multiplication in vehicles
  • Can cause power loss, Leads to increased fuel consumption

Manual Transmission / Continuously Variable Transmission (CVT) / Dual Clutch Transmission (DCT)

  • Higher fuel efficiency, improved manual control
  • Complex mechanics for repairing, often higher upfront cost

The torque converter is a part of automatic transmissions that provides seamless gear changes and improved fuel efficiency when compared to manual transmission options. Its distinct market advantage is its potential for growth, in the expanding automotive sector.

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Research Methodology

This market research methodology defines the Torque Converter market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Automotive ecosystem, we analyze Torque Converter across Automotive, Industrial Machinery, and Marine Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:


We benchmark competitors such as Schaeffler Group, ZF Friedrichshafen, and Valeo by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Raw Material Acquisition, Component Manufacturing, and Assembly & Testing. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Automotive revenues to estimate the Torque Converter segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Raw Material Acquisition (Riverside Metals, Hensley Industries), Component Manufacturing (ZF Friedrichshafen, Valeo), and Assembly & Testing. Our parallel substitute analysis examines Manual Transmission, Continuously Variable Transmission (CVT), and Dual Clutch Transmission (DCT), highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Schaeffler Group, ZF Friedrichshafen, and Valeo, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Torque Converter market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Torque Converter Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 8.7 billion
Revenue Forecast in 2034USD 15.7 billion
Growth RateCAGR of 6.7% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 20248.2 billion
Growth OpportunityUSD 7.5 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 20248.2 billion USD
Market Size 202710.0 billion USD
Market Size 202911.3 billion USD
Market Size 203012.1 billion USD
Market Size 203415.7 billion USD
Market Size 203516.7 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredProduct Type, Application, Material Type
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledSchaeffler Group, ZF Friedrichshafen, Valeo, Voith, Allison Transmission, KAPEC, Transtar, Shantui, Precision of New Hampton, Yutaka Giken, EXEDY and Luoyang Wanli
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Torque Converter Market Size, Opportunities & Strategic Insights, by Product Type

4.1Single-Stage
4.2Multistage
Chapter 5

Torque Converter Market Size, Opportunities & Strategic Insights, by Application

5.1Automotive
5.2Industrial Machinery
5.3Marine
5.4Aviation
5.5Others
Chapter 6

Torque Converter Market Size, Opportunities & Strategic Insights, by Material Type

6.1Aluminum
6.2Steel
6.3Composite Material
Chapter 7

Torque Converter Market, by Region

7.1North America Torque Converter Market Size, Opportunities, Key Trends & Strategic Insights
7.1.1U.S.
7.1.2Canada
7.2Europe Torque Converter Market Size, Opportunities, Key Trends & Strategic Insights
7.2.1Germany
7.2.2France
7.2.3UK
7.2.4Italy
7.2.5The Netherlands
7.2.6Rest of EU
7.3Asia Pacific Torque Converter Market Size, Opportunities, Key Trends & Strategic Insights
7.3.1China
7.3.2Japan
7.3.3South Korea
7.3.4India
7.3.5Australia
7.3.6Thailand
7.3.7Rest of APAC
7.4Middle East & Africa Torque Converter Market Size, Opportunities, Key Trends & Strategic Insights
7.4.1Saudi Arabia
7.4.2United Arab Emirates
7.4.3South Africa
7.4.4Rest of MEA
7.5Latin America Torque Converter Market Size, Opportunities, Key Trends & Strategic Insights
7.5.1Brazil
7.5.2Mexico
7.5.3Rest of LA
7.6CIS Torque Converter Market Size, Opportunities, Key Trends & Strategic Insights
7.6.1Russia
7.6.2Rest of CIS
Chapter 8

Competitive Landscape

8.1Competitive Dashboard & Market Share Analysis
8.2Company Profiles (Overview, Financials, Developments, SWOT)
8.2.1Schaeffler Group
8.2.2ZF Friedrichshafen
8.2.3Valeo
8.2.4Voith
8.2.5Allison Transmission
8.2.6KAPEC
8.2.7Transtar
8.2.8Shantui
8.2.9Precision of New Hampton
8.2.10Yutaka Giken
8.2.11EXEDY
8.2.12Luoyang Wanli