The Global Automotive Torque Converter Market was valued at USD 6.72 billion in 2025 and is estimated to grow at a CAGR of 5.3% to reach USD 11.14 billion by 2035.
Growth is driven by the rising adoption of automatic transmissions, which offer a smoother, easier driving experience, particularly in urban areas. Torque converters are transforming traditional vehicles by replacing complex clutch and gear mechanisms with hydraulic fluid-based systems, allowing vehicles to operate without a clutch pedal. Increasing consumer preference for automatic transmission in both passenger cars and commercial fleets is boosting market demand. Torque converters also enhance fuel efficiency compared to manual transmissions, which further encourages adoption. Markets with high penetration of automatic vehicles, including the U.S. and the U.K., continue to create significant opportunities for both new vehicle production and aftermarket component replacement. As global urbanization and hybrid vehicle adoption grow, torque converters are becoming essential for seamless and efficient vehicle operation.
The continuously variable transmission (CVT) segment held a 37.4% share in 2025 due to its superior fuel efficiency and ability to allow engines to operate at optimal revolutions per minute. CVTs provide a smooth, seamless driving experience that is increasingly favored in city environments.
The passenger vehicle segment generated USD 5.11 billion in 2025, reflecting high demand for automatic transmission vehicles. The rise of hybrid electric vehicles (HEVs) and manufacturers’ push for advanced automatic transmission technology is driving growth in this segment.
United States Automotive Torque Converter Market reached USD 1.82 billion in 2025, up from USD 1.75 billion in 2024. Technological advancements are encouraging U.S.-based OEMs to adopt more efficient torque converters that help meet Corporate Average Fuel Economy (CAFE) standards. While battery-electric vehicles often do not require torque converters, HEVs and plug-in hybrids rely on advanced, compact converters to maximize efficiency and performance.
Key players in the Automotive Torque Converter Market include Schaeffler Technologies, BorgWarner, Exedy, Aisin Seiki, Allison Transmission, Continental, Voith, ZF Friedrichshafen, Valeo, and Delphi Technologies. Companies are strengthening their Automotive Torque Converter Market positions by developing high-efficiency and compact torque converters suitable for hybrid and plug-in hybrid electric vehicles. Strategic R&D investments are focused on improving fuel economy, reducing emissions, and enhancing durability. Leading manufacturers are forming alliances with OEMs to integrate advanced torque converters into next-generation automatic transmissions and continuously variable transmissions (CVTs). Technological innovation, including hydraulic optimization and lightweight materials, is being used to improve performance while lowering costs. Market leaders are also expanding global production capabilities and establishing service and aftermarket networks to ensure long-term customer support.
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Growth is driven by the rising adoption of automatic transmissions, which offer a smoother, easier driving experience, particularly in urban areas. Torque converters are transforming traditional vehicles by replacing complex clutch and gear mechanisms with hydraulic fluid-based systems, allowing vehicles to operate without a clutch pedal. Increasing consumer preference for automatic transmission in both passenger cars and commercial fleets is boosting market demand. Torque converters also enhance fuel efficiency compared to manual transmissions, which further encourages adoption. Markets with high penetration of automatic vehicles, including the U.S. and the U.K., continue to create significant opportunities for both new vehicle production and aftermarket component replacement. As global urbanization and hybrid vehicle adoption grow, torque converters are becoming essential for seamless and efficient vehicle operation.
The continuously variable transmission (CVT) segment held a 37.4% share in 2025 due to its superior fuel efficiency and ability to allow engines to operate at optimal revolutions per minute. CVTs provide a smooth, seamless driving experience that is increasingly favored in city environments.
The passenger vehicle segment generated USD 5.11 billion in 2025, reflecting high demand for automatic transmission vehicles. The rise of hybrid electric vehicles (HEVs) and manufacturers’ push for advanced automatic transmission technology is driving growth in this segment.
United States Automotive Torque Converter Market reached USD 1.82 billion in 2025, up from USD 1.75 billion in 2024. Technological advancements are encouraging U.S.-based OEMs to adopt more efficient torque converters that help meet Corporate Average Fuel Economy (CAFE) standards. While battery-electric vehicles often do not require torque converters, HEVs and plug-in hybrids rely on advanced, compact converters to maximize efficiency and performance.
Key players in the Automotive Torque Converter Market include Schaeffler Technologies, BorgWarner, Exedy, Aisin Seiki, Allison Transmission, Continental, Voith, ZF Friedrichshafen, Valeo, and Delphi Technologies. Companies are strengthening their Automotive Torque Converter Market positions by developing high-efficiency and compact torque converters suitable for hybrid and plug-in hybrid electric vehicles. Strategic R&D investments are focused on improving fuel economy, reducing emissions, and enhancing durability. Leading manufacturers are forming alliances with OEMs to integrate advanced torque converters into next-generation automatic transmissions and continuously variable transmissions (CVTs). Technological innovation, including hydraulic optimization and lightweight materials, is being used to improve performance while lowering costs. Market leaders are also expanding global production capabilities and establishing service and aftermarket networks to ensure long-term customer support.
Comprehensive Market Analysis and Forecast
- Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
- Competitive landscape with Porter’s Five Forces and PESTEL analysis
- Market size, segmentation, and regional forecasts
- In-depth company profiles, business strategies, financial insights, and SWOT analysis
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Table of Contents
Chapter 1 Methodology
Chapter 2 Executive Summary
Chapter 3 Industry Insights
Chapter 4 Competitive Landscape, 2025
Chapter 5 Market Estimates & Forecast, by Transmission, 2022-2035 ($Mn, Units)
Chapter 6 Market Estimates & Forecast, by Converter, 2022-2035 ($Mn, Units)
Chapter 7 Market Estimates & Forecast, by Vehicle, 2022-2035 ($Mn, Units)
Chapter 8 Market Estimates & Forecast, by Sales Channel, 2022-2035 ($Mn, Units)
Chapter 9 Market Estimates & Forecast, by Region, 2022-2035 ($Mn, Units)
Chapter 10 Company Profiles
Companies Mentioned
The companies profiled in this Automotive Torque Converter market report include:- ZF Friedrichshafen
- Schaeffler
- Valeo
- EXEDY
- Aisin
- BorgWarner
- Yutaka Giken
- Allison Transmission
- JATCO
- Punch Powertrain
- Voith
- Delphi Technologies
- Zhejiang Torch Auto Parts
- Hubei Aviation Precision Machinery Technology
- Zhejiang Wanliyang
- Transtar Industries
- Florida Torque Converter
- RevMax Converters
- TCI Automotive
- Circle D Specialties
- Coan Engineering
- Hughes Performance
- Hays Performance (Holley)
- Sonnax Transmission Company
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 230 |
| Published | December 2025 |
| Forecast Period | 2025 - 2035 |
| Estimated Market Value ( USD | $ 6.72 Billion |
| Forecasted Market Value ( USD | $ 11.14 Billion |
| Compound Annual Growth Rate | 5.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 25 |
