Automotive Torque Converter Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Automotive Torque Converter Market is projected to expand from USD 8.35 billion in 2025 to USD 11.63 billion by 2031, reflecting a CAGR of 5.68%. These fluid coupling devices are essential for transferring rotational power from internal combustion engines to transmissions, enabling vehicles to idle without stalling while offering torque multiplication during acceleration. Growth in this sector is largely propelled by the sustained popularity of automatic transmissions across both commercial and passenger vehicle segments, as consumers increasingly prioritize driving comfort in traffic-heavy urban settings. Furthermore, the ongoing reliance on internal combustion and hybrid frameworks in developing regions guarantees a continuous need for these hydraulic components, ensuring their relevance despite shifting technological landscapes.

Conversely, the rapid global transition toward Battery Electric Vehicles (BEVs) poses a substantial obstacle to market growth, as electric powertrains generally employ single-speed gearboxes that render fluid couplings obsolete. This structural shift endangers the long-term demand for traditional transmission parts. Nonetheless, the automotive manufacturing sector maintains strong production volumes despite these challenges. Data from the International Organization of Motor Vehicle Manufacturers (OICA) indicates that global motor vehicle production hit 92.5 million units in 2024, demonstrating a resilient baseline demand for conventional drivetrain systems within the broader industry.

Market Drivers

The incorporation of specialized torque converters into hybrid electric powertrains acts as a vital technological link, upholding the demand for fluid couplings amidst the general move toward electrification. Unlike full electric vehicles that typically use single-speed transmissions, hybrid systems frequently maintain automatic transmissions dependent on torque converters to smooth the interplay between electric motors and internal combustion engines. This setup is crucial for managing vibration damping and torque delivery during complex driving scenarios. Major automakers are successfully capitalizing on this segment, as evidenced by Ford Motor Company's 'First Quarter 2024 US Sales' report from April 2024, which noted a 42 percent surge in hybrid vehicle sales to 38,421 units, highlighting the strong consumer adoption of drivetrains that still require these hydraulic elements.

Additionally, the growth of passenger vehicle production in emerging markets offers a solid foundation for industry volume, especially as these economies shift from manual to automatic transmissions. Rapid industrialization in nations like China and India, coupled with increasing vehicle ownership and a desire for driving ease, significantly drives component procurement. This increase in regional manufacturing necessitates a steady supply of transmission assemblies. For instance, the Society of Indian Automobile Manufacturers reported in their April 2024 'Flash Report March 2024' that domestic passenger vehicle sales hit a record 4.21 million units for the fiscal year, signaling a growing market for suppliers. Moreover, the China Association of Automobile Manufacturers stated that total vehicle production in China surpassed 30.16 million units in 2024, confirming a consistent global demand for transmission installations from these key Asian hubs.

Market Challenges

The swift international transition to Battery Electric Vehicles (BEVs) radically alters the Global Automotive Torque Converter Market by eliminating the mechanical need for fluid couplings. In contrast to internal combustion engines, which depend on torque converters to handle idle states and acceleration via multi-speed transmissions, BEV powertrains provide immediate torque to the wheels and generally employ single-speed reduction gears. This design shift renders the torque converter obsolete within the vehicle assembly, turning a formerly essential part into a superfluous expense for electric platforms. As a result, as manufacturers shift their production focus to electric architectures, the addressable market for hydraulic transmission components confronts a structural downturn.

Recent trends in key automotive sectors confirm this market contraction. Data from the China Association of Automobile Manufacturers (CAAM) shows that in 2024, New Energy Vehicle sales hit 12.87 million units, accounting for roughly 40.9% of the region's total vehicle market. This substantial share translates to millions of cars produced without conventional automatic transmissions, leading to a direct decrease in torque converter installations. As the drive for electrification gains momentum worldwide, the industry faces an enduring decline in baseline demand from its highest-volume segments, thereby impeding overall market expansion.

Market Trends

The extensive integration of Centrifugal Pendulum Absorbers (CPAs) is transforming component engineering to manage the heightened torsional vibrations characteristic of contemporary downsized engines and cylinder-deactivation systems. With automakers reducing cylinder counts to adhere to rigorous emission regulations, the consequent rise in rotational irregularity requires sophisticated damping measures to ensure cabin comfort. CPAs successfully sequester these oscillations, allowing powertrains to function at lower speeds without passing harshness into the drivetrain, which is essential for preserving drivability in fuel-conscious vehicles. Major suppliers are prioritizing this technology; for instance, Exedy Corporation's 'Integrated Report 2024' from August 2024 forecasted a 23.7% global share of the OEM torque converter market for the fiscal year, propelled significantly by increased sales of these high-performance dampers designed for modern propulsion requirements.

Simultaneously, the adoption of advanced multi-plate lock-up clutches is increasing as a method to reduce hydraulic losses and boost total transmission efficiency. Employing cutting-edge friction materials and enhanced thermal capacities, these clutches enable earlier and more frequent engagement, helping to close the efficiency disparity between manual and automatic gearboxes. This approach curtails the slippage common in fluid couplings, thereby directly aiding vehicle manufacturers in meeting CO2 reduction goals while sharpening throttle response. The economic benefit of these innovations is reflected in sector results; Schaeffler AG's 'Annual Report 2023', released in March 2024, reported that its Automotive Technologies division earned an EBIT before special items of 435 million euros, a roughly 49 percent year-over-year rise driven by the expansion of these efficient mobility technologies.

Key Players Profiled in the Automotive Torque Converter Market

• Aisin Seiki Corporation
• BorgWarner Inc.
• Continental AG
• EXEDY Corporation
• ZF Friedrichshafen AG
• Schaeffler Group
• Valeo SA
• JATCO Ltd.
• Sonnax Transmission Company Inc.
• Precision Industrie

Report Scope

In this report, the Global Automotive Torque Converter Market has been segmented into the following categories:

Automotive Torque Converter Market, by Vehicle Type:

• Passenger Cars
• LCV
• M&HCV

Automotive Torque Converter Market, by Transmission Type:

• Automatic Transmission (AT)
• Automated Manual Transmission (AMT)
• Dual-Clutch Transmission (DCT) and Others

Automotive Torque Converter Market, by Stage:

• Acceleration
• Coupling
• Stall

Automotive Torque Converter Market, by Propulsion Type:

• Petrol/CNG
• Diesel
• Electric & Hybrid

Automotive Torque Converter Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Torque Converter Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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