Automotive Torque Converter Market Forecasts to 2030 – Global Analysis By Component (Impeller, Turbine and Other Components), Transmission Type (Automatic Transmission, Dual Clutch Transmission and Other Transmission Types), Vehicle Type, Application and

Automotive Torque Converter Market Forecasts to 2030 – Global Analysis By Component (Impeller, Turbine and Other Components), Transmission Type (Automatic Transmission, Dual Clutch Transmission and Other Transmission Types), Vehicle Type, Application and By Geography

According to Stratistics MRC, the Global Automotive Torque Converter Market is accounted for $8.12 billion in 2023 and is expected to reach $12.86 billion by 2030 growing at a CAGR of 7.8% during the forecast period. An automotive torque converter is a vital component in automatic transmission systems, enabling smooth power delivery from the engine to the transmission. It operates by utilizing fluid dynamics to transmit torque, allowing the engine to continue running while the vehicle is stationary or in motion. The torque converter consists of three main elements: the impeller, turbine, and stator, which work together to transfer power efficiently. The torque converter plays a crucial role in ensuring smooth acceleration, efficient power transfer, and improved fuel economy in automatic vehicles.

Market Dynamics:

Driver:

Growing preference for fuel efficiency

The growing preference for fuel efficiency is a significant driver of the automotive torque converter market due to its direct impact on overall vehicle performance and economy. As consumers and regulators prioritize environmental concerns and fuel costs, automakers are compelled to enhance the efficiency of their vehicles. Advancements in torque converter technology, such as lock-up clutches and optimized designs, enable better power transfer and reduced energy loss, thereby improving fuel efficiency. Consequently, manufacturers are increasingly integrating advanced torque converter systems into their vehicles to meet stringent fuel economy standards and satisfy consumer demands for more economical driving options.

Restraint:

Increasing shift towards electric vehicles (EVs)

The increasing shift towards electric vehicles (EVs) poses a significant restraint. Unlike traditional internal combustion engine vehicles, electric vehicles do not require torque converters as they utilize electric motors for propulsion, rendering the traditional transmission components obsolete. This shift diminishes the demand for torque converters in the automotive sector, impacting the market adversely. As EV adoption continues to rise, the automotive torque converter market faces the challenge of adapting to the changing landscape by diversifying its product offerings or exploring alternative markets to sustain growth.

Opportunity:

Integration with automated driving systems

Torque converters which are traditionally vital in transmitting power from the engine to the transmission, now find enhanced relevance in automated driving setups. As vehicles shift towards autonomy, torque converters can aid seamless transitions between acceleration, deceleration, and coasting phases, ensuring smoother operation of automated driving systems. Additionally, torque converters can contribute to energy efficiency and optimized power delivery, which are crucial in the context of autonomous vehicles' energy management and performance requirements. This integration aligns with the evolving needs of the automotive industry, marking torque converters as pivotal components in the transition towards autonomous driving technology.

Threat:

Shift towards dual-clutch transmissions

Supply chain disruptions usually happen due to interruptions or delays in the flow of materials, components, or finished products throughout the supply chain. These disruptions can be caused by various factors, such as natural disasters, geopolitical issues, or global health crises, impacting the availability and timely delivery of critical components. The prices of materials like steel, aluminum, and precious metals used in torque converter manufacturing can fluctuate due to factors such as market demand, supply chain constraints, or geopolitical tensions, thereby impacting profitability and pricing strategies within the industry.

Covid-19 Impact:

Due to widespread lockdowns and economic uncertainties, vehicle production and sales plummeted globally, leading to a decline in demand for torque converters. Supply chain disruptions and manufacturing shutdowns further exacerbated the situation, causing delays in production and distribution. As consumer spending and automotive industry investment stalled, the market witnessed reduced investments in research and development of torque converter technologies. However, with a gradual economic recovery and increased emphasis on vehicle electrification, the market is expected to rebound, albeit with a shift towards hybrid and electric vehicle technologies.

The impeller segment is expected to be the largest during the forecast period

The impeller segment in the automotive torque converter market has experienced significant growth due to advancements in automotive technology which have led to the demand for more efficient and durable torque converters, where impellers play a crucial role. Rising consumer preference for smoother driving experiences has led to a surge in the adoption of automatic transmissions, fueling impeller segment growth. Moreover, stringent fuel efficiency regulations have pushed automakers to focus on optimizing power transmission systems, enhancing the importance of high-quality impellers.

The dual clutch transmission segment is expected to have the highest CAGR during the forecast period

The growth of the dual clutch transmission (DCT) segment can be attributed to several factors. DCT offers quicker gear shifts and improved fuel efficiency compared to traditional automatic transmissions, appealing to consumers seeking enhanced driving performance. Advancements in DCT technology have led to smoother operation and increased durability, further driving its adoption. As automotive manufacturers focus on meeting stringent emissions regulations, DCTs provide a viable solution for optimizing power delivery and reducing carbon emissions. Additionally, the growing demand for hybrid and electric vehicles has spurred the development of DCT systems tailored to these platforms, expanding the market reach.

Region with largest share:

The North American region has experienced steady growth in the automotive torque converter market due to an increasing demand for automatic transmission vehicles. Advancements in automotive technologies have led to the development of more efficient and durable torque converters, appealing to consumers and manufacturers alike. Additionally, a growing automotive aftermarket sector in North America has further propelled the market with a rising number of torque converter replacements and upgrades. The region's robust automotive industry infrastructure and significant investments in research and development have facilitated market expansion. Lastly, evolving environmental regulations driving the demand for fuel-efficient vehicles have spurred innovations in torque converter technology.

Region with highest CAGR:

The Asia-Pacific region has experienced significant growth in the automotive torque converter market due to rising automotive production in countries like China, India, and Japan which has spurred demand for torque converters. Additionally, increasing disposable incomes and urbanization have fuelled the demand for passenger vehicles, further driving market growth. Advancements in technology and the emergence of electric vehicles have also contributed to the expansion of the torque converter market, as manufacturers strive to improve transmission efficiency. These factors combined have propelled the Asia-Pacific region to become a prominent player in the global automotive torque converter market, with sustained growth anticipated in the coming years.

Key players in the market

Some of the key players in Automotive Torque Converter market include Aisin Seiki Corporation, BorgWarner Inc., Continental AG, Delphi Technologies, Exedy Corporation, Isuzu Motors Ltd., Jatco Ltd, Schaeffler Technologies AG & Co. Kg, Sonnax Transmission Company, Inc., Subaru Corporation, Transtar Industries, Valeo Group, Voith Gmbh & Co. and ZF Friedrichshafen AG.

Key Developments:

In March 2024, Valeo marked a significant milestone with the official opening of its state-of-the-art manufacturing plant in Daegu, Korea. The new facility, a result of a $56 million investment agreement signed with the Daegu Metropolitan Government in July 2022, underscores Valeo's commitment to mass-produce Advanced Driver Assistance Systems (ADAS) components. Construction of the greenfield plant commenced in March 2023, with operations slated to begin in early 2025.

In March 2024, Japanese carmaker Isuzu has announced that it will unveil its first-ever D-Max electric at the 45th Bangkok International Motor Show. This new electric D-Max will get a 1.0-tonne payload, 3.5-tonne towing capacity, and a full-time 4WD system.The prototype of the vehicle will be showcased to the public at the Motor Show from 27 March to 7 April, 2024.

Components Covered:
• Impeller
• Turbine
• Clutch Plate
• Damper
• Stator
• Other Components

Transmission Types Covered:
• Automatic Transmission
• Dual Clutch Transmission
• Continuously Variable Transmission
• Other Transmission Types

Vehicle Types Covered:
• Hybrid Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• Other Applications

Applications Covered:
• Commercial Vehicle
• Passenger Vehicle
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances