Global Torque Converter Market - Industry Trends and Forecast to 2029

Global Torque Converter Market, By Transmission Type (Automatic Transmission, Continuously Variable Transmission, Dual-Clutch Transmission), Component (Clutch Plate, Damper, Impeller, Stator, Turbine), Vehicle Type (Passenger Car, Commercial Vehicle), Hybrid Vehicle Type (Hybrid Electric Vehicle, Plug-In Electric Vehicle), End Users (Original Equipment Manufacturer (OEM), Aftermarket)) - Industry Trends and Forecast to 2032

Torque Converter Market Size

• The global torque converter market was valued at USD 3.65 billion in 2024 and is expected to reach USD 4.75 billion by 2032
• During the forecast period of 2025 to 2032 the market is likely to grow at a CAGR of 3.8%, primarily driven by the increasing need for efficient cash and liquidity management.
• This growth is fueled by factors such as the rising adoption of automation in financial operations, demand for real-time treasury analytics, enhanced regulatory compliance requirements, and the digital transformation of corporate finance functions.

Torque Converter Market Analysis

• Torque converters are devices that serve as a link between the engine and the transmission, allowing the engine of a vehicle to rotate independently of the transmission in order to reduce the vehicle's mechanical efforts. It also aids in automatically achieving different speeds
• Major factor driving the growth of the global torque converter market is the advancement of torque converters in power train mechanisms. The power train consists of transmission and provides power to the engines to run the vehicle, which is expected to boost market growth during the forecast period
• North America is expected to dominate the global torque converter market wih the market share 31.23% due to the presence of global manufacturers in the region.  

  • For instance, In May 2022, Carlson Cash, an SAP Treasury and Cash Management Expert Company, and JDC Group established a partnership. This strategic partnership allowed JDC Group to specialize in SAP Treasury and Cash Management projects for its clients.

• Globally, torque converters are recognized as critical components in the automotive and industrial sectors, enabling smooth power transmission, improving fuel efficiency, and enhancing overall vehicle performance.  

Report Scope and Torque Converter Market Segmentation   

Torque Converter Market Trends

“Advancements in automotive transmissions enhance torque converter performance”

• The integration of advanced automotive transmission systems is redefining how torque converters operate, with a focus on improving power delivery, reducing energy losses, and supporting smoother gear shifts across all vehicle segments.
• With the rise of hybrid and electric powertrains, torque converters are evolving to accommodate dual power sources, requiring innovations in material science and control systems to enhance performance while meeting emission standards. 

  • For instance, In November 2021, a BHPian shared insights into torque converters, emphasizing their complex engineering and educational value. At a trade school, students built a working torque converter model, blending theory with hands-on experience. This initiative helps struggling students pursue automotive careers, leading many to become successful mechanics. The story highlights the importance of vocational training and real-world learning.

• To keep up with modern automotive design, companies are incorporating lightweight and high-strength materials to reduce the overall weight of torque converters without compromising durability or thermal performance.
• Moreover, the shift toward smart and connected vehicles is pushing the development of torque converters integrated with sensors and control modules, enabling predictive maintenance and performance monitoring as part of intelligent transmission systems.

Torque Converter Market Dynamics

Driver

“Growing Demand for Automatic and Hybrid Transmissions Across Vehicle Segments”

• Modern vehicles, especially passenger cars and SUVs, are increasingly equipped with automatic and hybrid transmissions, which inherently rely on high-performance torque converters to deliver smooth acceleration and fuel efficiency
• Consumer preference for comfort, seamless driving, and improved handling has accelerated the demand for automatic transmissions, significantly driving the adoption of advanced torque converters globally
• Additionally, governments around the world are imposing stricter emission norms, prompting automakers to use optimized torque converters to meet these regulations while maintaining vehicle performance

For instance,

• On November 20, 2024, Skoda Auto Volkswagen announced plans to localize a new Aisin-sourced 8-speed automatic gearbox to replace the current 6-speed unit in India. Targeting cost reduction, the gearbox will debut post-2025 facelifts of Kushaq and Slavia, and later in Volkswagen's Taigun and Virtus. Aisin will manufacture it in India and Brazil for broader OEM adoption
• These advancements are enabling OEMs to reduce transmission lag, enhance fuel efficiency, and meet evolving automotive standards, thereby fueling market growth.

Opportunity

“Development of compact, high-efficiency torque converters for EVs and HEVs”

• With increasing investment in electric and hybrid vehicles, there is a strong market opportunity for designing torque converters that are smaller, lighter, and optimized for electric powertrains
• Automakers and component suppliers are exploring new converter architectures and smart hydraulic systems that reduce friction losses and enhance torque multiplication in hybrid vehicles
• Beyond traditional automotive usage, torque converters are finding growing applications in sectors such as construction equipment, agricultural machinery, and marine propulsion systems due to their ability to handle heavy loads and variable speeds efficiently

For instance,

• On May 11, 2022, an in-depth article demystified torque converter transmissions, highlighting their complex yet elegant operation. Acting like a clutch in automatic vehicles, torque converters use fluid dynamics to transfer power. Key components include the pump, turbine, and stator, all working together to ensure smooth vehicle performance. This technology enhances driving comfort and prevents stalling, revolutionizing transmission systems.
• This trend aligns with global automotive goals to enhance energy efficiency, reduce emissions, and extend vehicle range—making advanced torque converters critical components in the future vehicle ecosystem.

Restraint/Challenge

“Lack of technical awareness among low-tier OEMs and aftermarket players”

• While leading automotive manufacturers are actively adopting next-gen torque converters, many small- and mid-tier OEMs and aftermarket service providers lack awareness of the performance and efficiency benefits offered by advanced torque converter designs
• This gap in technical know-how restricts the widespread adoption of innovations like lock-up mechanisms, precision fluid dynamics, and smart controller integration—limiting growth potential in developing regions
• Advanced torque converters often involve precision engineering, high-grade materials, and complex fluid dynamics, leading to higher production costs and longer development cycles

For instance,

• In June 2021, BMW’s M3 Competition in the UK ditched manuals and dual-clutch transmissions for a ZF 8-speed torque-converter automatic, reflecting a shift back to refined fluid-coupled gearboxes for better efficiency. Meanwhile, Continental’s Allcharge tech boosts EV charging by converting the inverter into a charger, potentially delivering 4km of range per minute and enhancing fast charger compatibility. 
• Bridging this knowledge and technology gap through training, awareness programs, and partnerships between Tier 1 suppliers and regional players could significantly boost market penetration and fuel aftermarket growth

Torque Converter Market Scope

The market is segmented on the basis Transmission type, Component, Vehicle Type, Hybrid Vehicle Type and End Users.

Torque Converter Market Regional Analysis

“North America is the Dominant Region in the Torque Converter Market”

• North America dominates the global torque converter market with market share 31.23% due to the high penetration of automatic transmission vehicles, strong presence of leading automotive OEMs, and a well-established aftermarket network
• The region hosts major torque converter manufacturers and transmission system suppliers who are investing in R&D to improve fuel efficiency, reduce emissions, and enhance driving performance
• A growing preference for SUVs and light trucks, which typically use advanced automatic transmissions, continues to drive the demand for high-performance torque converters
• Additionally, the adoption of hybrid and plug-in hybrid vehicles is gaining momentum across the U.S. and Canada, creating further opportunities for next-generation torque converter systems tailored for electric drivetrains

“Asia Pacific is Projected to Register the Highest Growth Rate”

• The Asia-Pacific region is projected to register the highest growth rate in the torque converter market with the market share 28.98%, supported by rising vehicle production, expanding urban populations, and growing consumer demand for automatic and hybrid vehicles
• Countries like China, India, Japan, and South Korea are experiencing a significant shift toward fuel-efficient and low-emission vehicles, pushing automakers to integrate advanced torque converters into their platforms
• Government policies encouraging electrification and emission control, along with infrastructure developments in transportation, are fostering the growth of modern transmission systems using torque converters
• Furthermore, increased foreign direct investment (FDI) in automotive manufacturing, especially in India and Southeast Asia, is creating a fertile ground for the expansion of OEMs and component suppliers in the torque converter space

Torque Converter Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Infineon Technologies AG (Germany)
• NXP Semiconductors NV (Netherlands)
• Texas Instruments, Inc. (U.S.)
• Toshiba Corp. (Japan)
• Intel Corporation (U.S.)
• Maxim Integrated (U.S.)
• Broadcom Inc. (U.S.)
• Qualcomm Inc. (U.S.)
• Analog Devices, Inc. (U.S.)
• Advanced Micro Devices (U.S.)
• Microchip Technology, Inc. (U.S.)
• Monolithic Power Systems, Inc. (U.S.)
• Samsung Semiconductor, Inc. (South Korea)
• SK Hynix Inc. (South Korea)
• Mediatek Inc. (Taiwan)
• Hitachi Ltd. (Japan)
• Schurter (S) Pte. Ltd. (Singapore)
• Rewell Industrial Co. Ltd. (Taiwan)
• Kyocera Electronics Devices (Japan)
• Watts Electronics Pvt. Ltd. (India)

Latest Developments in Global Torque Converter Market

• In April 2, 2019, ASG, a division of Jergens, Inc., launched its first mobile app, the Torque Converter App. This app allows users to easily convert torque units between imperial and metric measurements. Designed for Apple and Android users, it provides instant and accurate conversions with no unnecessary clicks. The app is free to download from the Apple and Google Play stores.
• In September 17, 2020, Skoda launched the Rapid automatic, priced between USD 1.14 thousand and USD 1.60 thousand. It features a 1.0-litre turbo petrol engine with 110hp and a 6-speed torque converter, replacing the DSG. The car offers improved fuel efficiency (16.24 km/l) and competes with rivals like the Hyundai Verna and Honda City in the premium sedan segment. 
• In November 27, 2023, a torque converter was explained as a crucial component in automatic transmissions, transmitting power from the engine to the wheels. It acts like a clutch in manual systems, enabling the car to move and idle without stalling. However, it can fail due to heat, fluid breakdown, or mechanical damage, often causing symptoms like slipping, overheating, or poor fuel efficiency.
• In April 5, 2021, BMW shifted from manual gearboxes to the ZF 8-speed torque-converter automatic in the M3 Competition to improve efficiency. This transmission, developed since 2009, offers smooth shifts and excellent fuel economy by controlling shift points precisely. The 8HP handles up to 738lb-ft of torque, making it ideal for performance cars while being lighter than traditional manuals.

SKU-24799