Torque Converter Market
Torque Converter Market
The market for Torque Converter was estimated at $8.20 billion in 2024; it is anticipated to increase to $12.1 billion by 2030, with projections indicating growth to around $16.7 billion by 2035.
Report Summary
Table of Contents
Methodology
Market Data
Global Torque Converter Market Outlook
Revenue, 2024 (US$B)
$8.2B
Forecast, 2034 (US$B)
$15.7B
CAGR, 2024 - 2034
6.7%
The Torque Converter industry revenue is expected to be around $8.7 billion in 2025 and expected to showcase growth with 6.7% CAGR between 2025 and 2034. 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. </p><p>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. </p>
Market Key Insights
- 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 market leaders in this sector include Schaeffler Group and ZF Friedrichshafen and Valeo which determine the competitive dynamics of this market.
- U.S. and Germany are the top markets within the Torque Converter market and are expected to observe the growth CAGR of 4.4% to 6.4% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 7.7% to 9.2%.
- The Torque Converter market will experience $1.0 billion worth of growth due to Transition like Transition Towards Electric Vehicles by 2030.
- 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
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.
Growth Opportunities in North America and Europe
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.
Market Dynamics and Supply Chain
01
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.<br>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.
02
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.
03
Opportunity: 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.<br>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.
04
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
1
Raw Material Acquisition
Riverside Metals
Hensley Industries
2
Component Manufacturing
ZF Friedrichshafen
Valeo
3
Assembly & Testing
Schaeffler Group
EXEDY Corporation
4
Distribution & Sales
BorgWarner Inc
1
Raw Material Acquisition
Riverside Metals
Hensley Industries
2
Component Manufacturing
ZF Friedrichshafen
Valeo
3
Assembly & Testing
Schaeffler Group
EXEDY Corporation
4
Distribution & Sales
BorgWarner Inc
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Torque Converter in Automotive, Heavy Machinery and Aerospace
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.
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.
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.
Recent Developments
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 & Mobility 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 & Mobility 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.
01
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.
02
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.