Torque Converter Market Report Scope & Overview:

The Torque Converter Market size was valued at USD 8.40 billion in 2024 and is expected to reach USD 12.61 billion by 2032, growing at a CAGR of 5.25% over the forecast period of 2025-2032.

The torque converter market is driving the growing adoption of automatic and CVT transmissions in passenger and commercial vehicles to provide smooth acceleration, improve fuel economy, and reduce driver fatigue. The market covers items including impellers, turbines, clutches, and dampers, where they play an important role in modern-day transmissions. Newer technology, however, such as lockup torque converters and multi-stage designs, is making greater performance and efficiency available than ever before. Torque converter market analysis intelligence, OEM and aftermarket segments gaining traction. With the widespread expansion of automotive production, the global torque converter market share is expected to retain steady growth, all the while proliferating in regions working towards automating vehicles.

“For instance in September 2024 Valeo announces a new a lock-up technology as part of its enhanced Torque Converter portfolio, offering higher performance, lower fuel consumption and CO₂ emissions and less jerkiness than conventional technologies, bringing Valeo one step closer to a complete global drivetrain solution.”

The U.S. torque converter market size was valued at USD 1.72 billion in 2024 and is expected to reach USD 3.57 billion by 2032, growing at a CAGR of 4.13% over the forecast period of 2025-2032.

The U.S. torque converter market is showing a continual expansion owing to the increasing inclination of the automotive industry toward automatic transmissions. Market growth is driven by the rising demand for fuel-efficient and high-performance drivetrains, coupled with a strong OEM and aftermarket presence. The domestic footprint of the market is further consolidated due to technological innovations, along with an increasing number of vehicles manufactured.

Torque Converter Market Dynamics:

Drivers:

• Rising Adoption of Automatic Transmissions in Passenger and Commercial Vehicles Drives the Automotive Torque Converter Market

The automotive torque converter market is driven due to the increased demand for automatic transmission vehicles among passenger and commercial segments. It is even more so because consumers are now demanding more comfort, smooth gear shifts, and better fuel efficiency, which torque converters are capable of delivering. Likewise, growing urbanization, a rise in disposable income and vehicle ownership, with increasing preference for automatic vehicles, especially in North America and Asia-Pacific, has also been propelling the demand. This has led to broad, high-volume integration of torque converter units across all classes of vehicles. We see this trend continuing, strengthening the hold of Torque Converter Companies in the changing landscape of drivetrain systems.

“In May 2024, Schaeffler announced its new TorCon 6L80 torque converter extends the coverage for GM six-speed transmissions and helps ensure aftermarket support and durability for light-duty trucks and SUVs throughout North America.”

• Growing Demand for Eco-Friendly Products in Various Industries Boosts the Torque Converter Market Growth

With industries changing their ways into sustainability, vehicle makers are moving on to technologies for efficiency and emission reduction. With lock-ups and multi-stages, modern torque converters are capable of mitigating slippage and optimizing power for a major portion of the speed range, increasing fuel economy without sacrificing performance. This is in line with international emissions standards and regulatory objectives. Manufacturers are working to adopt such intelligent and complex systems to achieve green mobility objectives. The torque converter market growth benefits from innovations that uphold traditional principles of fluid dynamics while also integrating energy-saving features that respond to the desires of the eco-minded consumer and broader industry decarbonization goals.

Restraints:

• Limited Availability of Skilled Technicians Impacts Maintenance and Repair in the Torque Converter Industry

The limited number of trained or skilled professionals who can diagnose, repair, and maintain modern torque converter systems is one of the major restraints for the torque converter industry. These are highly designed and heavily integrated with electronic/hydraulic components, which is why they require a fair amount of advanced technical knowledge. Lack of training and repair infrastructure may lead to improper servicing, numerous failures, and longer vehicle downtime. In consumer durable markets, these results lead to increased ownership costs and decreased consumer confidence, particularly where the service networks are underdeveloped, which results in a significant adverse torque converter market share impact in the aftermarket and service segments of this market.

Torque Converter Market Segmentation Analysis

By Transmission Type

The torque converter market, the automatic segment accounted for over 47.12% in 2024 owing to its extensive utilization across mid to high-end passenger vehicles and SUVs. Automatic gearboxes find preference due to their simplicity and predictable performance particularly in city driving conditions. With automatic systems still predominant in major automotive manufacturers, torque converters would continue to witness substantial demand. The torque converter market analysis found that the many benefits of such systems, including efficiency improvements and durability, are expected to strengthen their position in the market.

The CVT segment is anticipated to grow with the fastest CAGR of approximately 5.70%, throughout 2025–2032, due to a surge in the requirement for fuel-efficient drivetrains with smooth gear ratio transitions in hybrid and compact vehicles. Both of which correlate nicely to modern fuel economy standards by reducing power loss and providing better acceleration while having to use the engine at lower revolutions. The growing torque converter market trends of producing hybrid and small cars are a significant factor accelerating market growth, as Companies are facilitating with CVT-compatible torque converters to keep pace with the changing technology of transmission.

By Component

In 2024, the impeller segment accounted for the highest revenue share of the torque converter market, as the impeller plays a pivotal role in the torque as it is responsible for transporting the fluid as well as the torque, thereby contributing to the overwhelming revenue share. In all types of torque converters, however, impellers act as the primary driver of power, where these components are always in demand to allow for initial power transfer from the engine to the transmission. The increasing demand for high-performance vehicles, in turn, further fuels the incorporation of sophisticated impeller designs. Also, such a trend further raises the significance of this component in the automotive torque converter market.

The damper segment is projected to experience the highest CAGR over 2025–2032 due to its rising applications in vibration reduction and driving comfort for modern vehicles. With automakers increasingly targeting smoother and quieter cabins, dampers have served to better isolate vibrations from the powertrain. Hybrid vehicles especially tend to adopt it due to an abrupt shift between engine turns. Emphasis on better drivability and noise suppression is helping to develop new products within the Torque Converter Industry, thus driving demand for advanced dampers.

By Vehicle Type

The passenger vehicle segment had the largest share in the 2024 torque converter market, which is due to higher production volumes of passenger vehicles, high preference of consumers for passenger vehicles with automatic transmission. Torque converters are the key component in a wide range of applications, but passenger cars are the biggest users of comfort-oriented drivetrain technologies. Segment’s leadership is further cemented with increasing SUV and sedan demand, leveraging more sophisticated transmission systems. Such a superior presence indicates effective torque converter market analysis in urbanized and advanced economies.

The commercial vehicle segment is projected to grow at the highest CAGR during the forecast period of 2025–2032, owing to logistics and freight movement requiring robust and efficient automatic transmissions. To counteract the effects of driver fatigue or encourage better fuel economy in the transition from manual to automatic gear systems, commercial fleets are taking that step. Torque converter integration is also expanding in utility and delivery applications as investments ramp up in electric buses and light-duty trucks. Such a transition paves the way for an opportunity enabling fleet modernization programs, which in turn will help to drive the growth of the Torque Converter Industry.

By End-Use

The OEM segment accounted for the highest revenue share in the torque converter market in 2024, as the collaboration in assembly between automakers and component suppliers remains robust. Torque converter manufacturers focus on producing high-quality products to meet the demands of OEMs for efficiency, durability, and performance. Hence, improved standards of drivetrain and emissions lead to a surge in demand for torque converters. By way of continuous innovation, mass production, and model-wise transmission integration, this hybridization has afforded domination of the OEM suppliers in the market marketplace and further established and entrenched the strategic positioning of the OEM against Independent players as a general fluid coupling technology context.

The aftermarket segment is projected to grow at the fastest CAGR over 2025-2032, owing to the increasing aging global vehicle fleet, which will lead to a greater need for maintenance and replacement of transmissions. Increasing awareness of consumers regarding the effect of torque converter wellness on the overall performance of vehicles is further fueling the replacement of products. Independent repair shops and online retail channels increase product availability, and remanufactured components provide lower-cost options. These are the factors that are making the aftermarket an important segment for the growth of the torque converter market share.

Torque Converter Market Regional Outlook:

The torque converter market was led by North America with around 42.56% revenue share in 2024, due to a strong automotive manufacturing base in the region, enhanced adoption of automatic transmissions, and vehicle technology including dual-clutch vehicles and variable transmission. The demand is driven by the presence of leading Companies and established OEM networks. The strong demand for SUVs and pickup trucks, a vehicle segment that employs most of the torque converters, also helps maintain market dominance.

Asia Pacific is anticipated to remain the fastest-growing regional market over the forecast period, registering a CAGR of 6.33% over 2025-2032. The growth of this market is driven by rapid urbanization along with rising disposable income and growing vehicle ownership in rapidly developing economies, such as China and India, which in turn increases the demand for the automotive battery market in this region. The rise of automatic and hybrid vehicles and government incentives for fuel-efficient modes of transport are rapidly driving torque converter adoption. Growing local production and targeted investments by global carmakers are boosting the regional talent pool. It also underlines the emerging landscape for the torque converter market, where Asia-Pacific is expected to play a significant role in its growth.

The European torque converter market is growing at a healthy rate due to increasing demand for automatic transmission and hybrid vehicles. The region is led by Germany based on its strong automotive manufacturing. So far, recent innovations include locking smaller torque converters, promoting performance and better fuel economy in both electric and plug-in hybrid drive systems.

Key Players in the Torque Converter Market are:

The major players operating in the market are: Schaeffler, ZF Friedrichshafen, Aisin, BorgWarner, Valeo, Exedy Corporation, Jatco Ltd., Precision Industries, Sonnax Transmission Company, and Continental AG.

Recent Developments:

• January 2023 - Aisin developed a compact, high-efficiency torque converter for hybrid vehicles, enhancing fuel economy and performance. This innovation supports next-generation electrified powertrains, advancing the global shift toward sustainable mobility solutions.

• November 2024 - Jatco introduced its latest torque converter with enhanced lock-up clutch technology, improving fuel efficiency and drivability, reinforcing its leadership in advanced automatic transmission systems for global automotive markets.