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Automotive Torque Converter Market - Growth, Trends, and Forecast (2020 - 2025)

  • ID: 4534447
  • Report
  • August 2020
  • Region: Global
  • 90 Pages
  • Mordor Intelligence


  • Aisin
  • Continental AG
  • Exedy
  • Jatco
  • Sonnax
  • Transtar
The Automotive Torque Converter Market is expected to register a CAGR of over 6.5% during the forecast period.
  • The torque converter in an automatic transmission serves a purpose similar to a clutch in a manual transmission. The demand for torque converters is directly related to the increased use of automatic transmission in modern vehicles. The key characteristics of a torque converter are its ability to multiply torque when there is a substantial difference between input and output of the engine’s rotation. Torque is a type of fluid coupling that relies on a fluid hydrodynamic to allow the engine to spin independently of the transmission.
  • Over the past three years, passenger cars and commercial vehicle sales across the globe have increased significantly. Although during 2019, there was a dip in the new vehicle sales, the sale of automatic cars, especially in the Asia Pacific region, has increased.
  • One of the key factors driving the growth of the Torque converters market is the increasing adoption of torque converters in commercial vehicles. The increasing adoption of automatic transmission in commercial vehicles is driven by the increasing construction activities and rising freight and logistics sectors.

With the improvement in technology, semi-automatic and fully automatic commercial vehicles are as fuel-efficient as manual commercial vehicles. In addition, the price difference between manual transmission has reduced significantly, making it affordable to buy. The sales of commercial vehicles have increased over the years due to increasing activities in the construction, mining, tourism, and logistics sectors.

Key Market Trends

Increasing Adoption of Automatic Transmissions in Commercial Vehicles

With the improvement in technology, fully automatic commercial vehicles are as fuel-efficient as manual commercial vehicles. Automatic Transmission provides the user with a fatigue-free experience as the user is free from frequent gear shifting. Ease of driving, especially in heavy traffic is creating a demand for an automatic transmission. Over the years many major automotive companies are focusing on technologies to improve automatic transmission in commercial vehicles.

In January 2019, Eicher Motor Limited launched medium-duty commercial vehicle Eicher 3016 AMT which is fitted with the automated manual transmission system.
  • Another major automobile manufacturer Volvo AB launched I-shift technology in the early 2000s. It is a 12-speed manual gearbox with an automated gear-changing system offering high driving and rides comfort and excellent fuel economy.
  • In April 2017 Tata Motors launched AMT (Automated Manual Transmission) technology in its Starbus and Ultra range of buses.

In the light of increasing commercial vehicle sales and higher penetration of automatic transmission systems, the market is expected to grow significantly over the forecast period.

North America and Asia-Pacific to Dominate the Market

North America was estimated to have the largest revenue share in the market in 2019 and is expected to grow further during the forecast period. A major challenge for the market is the high labor cost associated with the replacement market. The prospects for growth of the torque converter market in America will be significantly affected by the increased adoption of automatic transmission in a heavy-duty and medium-duty commercial vehicles. High fuel efficiency, comfort, ease of driving, and low driving skill requirement will compel the fleet owners to opt for automatic transmission in heavy and medium-duty commercial vehicles. These will also draw end consumers to the passenger vehicle segment. In addition, increased adoption of automatic transmission in passenger vehicles will drive the market for torque converters significantly in this segment.

In Asia-Pacific, China has been dominating the commercial vehicle segment. Four out of ten commercial vehicles are sold in China. In 2018, China recorded 4.3 million-unit sales of a commercial vehicle, witnessing a huge growth as compared to that of 2017.

In India major automobile manufacturers are investing heavily in the research and development of automatic transmission technology passenger cars segment to increase their sales. The use of automatic transmission in passenger car segment has seen has tremendous growth. In 2019 more than 17.3% passenger vehicles sold in the country has automatic transmission as compared to 1.4% in 2011. Maruti Suzuki a major automobile manufacturer in India, the automatic variants accounts for nearly a quarter of the Celerio, Ciaz, XL6 sales.

Competitive Landscape

The automotive automatic transmission market is highly consolidated, with major players, like Denso, ZF, Magna International, and Aisin Seiki, dominating the market.

Aisin Seiki supplies automatic transmission systems for small and medium commercial vehicles while Aisin AW supplies to passenger cars and small commercial vehicles.

Toyota produces automatic transmissions internally for some of its vehicles, while having some of its automatic transmissions supplied by Aisin AW and Aisin Seiki. Nissan and Mitsubishi Motors do not have in-house automatic transmission development, and have their systems supplied by JATCO. Honda, Subaru and Daihatsu produce their automatic transmissions internally. Mazda produces its systems internally for its front-wheel-drive vehicles, while having its transmissions for its rear-wheel-drive Roadster supplied by Aisin AW.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Note: Product cover images may vary from those shown


  • Aisin
  • Continental AG
  • Exedy
  • Jatco
  • Sonnax
  • Transtar

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Transmission Type
5.1.1 AMT
5.1.2 DCT
5.1.3 CVT
5.1.4 Others
5.2 Vehicle Type
5.2.1 Passenger Vehicles
5.2.2 Commercial Vehicles
5.3 Geography
5.3.1 North America United States Canada Rest of North America
5.3.2 Europe Germany United Kingdom France Spain Rest of Europe
5.3.3 Asia Pacific India China Japan Rest of Asia-Pacific
5.3.4 Latin America Mexico Brazil Argentina
5.3.5 Middle-East and Africa United Arab Emirates Saudi Arabia Rest of Middle-East and Africa
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Aisin
6.2.2 BorgWarner
6.2.3 Continental AG
6.2.4 Delphi Technologies
6.2.5 Exedy
6.2.6 Isuzu
6.2.7 Jatco
6.2.8 Precision Torque Converter
6.2.9 Schaeffler-LUK
6.2.10 Sonnax
6.2.11 Subaru
6.2.12 Transtar
6.2.13 Valeo
6.2.14 Voith
6.2.15 ZF
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Aisin
  • BorgWarner
  • Continental AG
  • Delphi Technologies
  • Exedy
  • Isuzu
  • Jatco
  • Precision Torque Converter
  • Schaeffler-LUK
  • Sonnax
  • Subaru
  • Transtar
  • Valeo
  • Voith
  • ZF
Note: Product cover images may vary from those shown