Automatic Transmission Torque Converter Market Research Report By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium and Heavy Commercial Vehicles), By Transmission Type (6-speed Automatic Transmission, 7-speed Automatic Transmission, 8-speed Automatic Transmission, 9-speed Automatic Transmission and Above), By Application (New Vehicles, Replacement Market), By Converter Design (Lock-up Torque Converter, Non-Lock-up Torque Converter) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) -

Automatic Transmission Torque Converter Market Overview:

As per MRFR analysis, the Automatic Transmission Torque Converter Market Size was estimated at 14.45 (USD Billion) in 2022.The Automatic Transmission Torque Converter Market Industry is expected to grow from 14.89(USD Billion) in 2023 to 19.5 (USD Billion) by 2032. The Automatic Transmission Torque Converter Market CAGR (growth rate) is expected to be around 3.05% during the forecast period (2024 - 2032).

Key Automatic Transmission Torque Converter Market Trends Highlighted

The global Automatic Transmission Torque Converter market is projected to witness significant growth in the coming years, driven by increasing demand for vehicles with automatic transmissions, rising popularity of electric and hybrid vehicles, and growing demand in emerging markets. Technological advancements, such as the development of multi-mode torque converters and lock-up clutches, are also expected to fuel market growth. Additionally, the increasing adoption of safety features, including electronic stability control and adaptive cruise control, is expected to drive demand for torque converters with higher torque capacity and improved durability. The market is expected to capitalize on opportunities, such as expanding applications in off-highway vehicles and potential advancements in electrification.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automatic Transmission Torque Converter Market Drivers

Increase in Demand for Automatic Transmission Vehicles

The rising demand for automatic transmission vehicles is a major driver of the Global Automatic Transmission Torque Converter Market Industry. Automatic transmission vehicles offer greater convenience and ease of driving, especially in congested urban areas. As the global population continues to grow and urbanization increases, the demand for automatic transmission vehicles is expected to rise. This, in turn, will drive the demand for automatic transmission torque converters, which are essential components of automatic transmissions. In addition, the increasing popularity of electric vehicles (EVs) is also contributing to the growth of the market.EVs typically use single-speed transmissions, which require torque converters to handle the high torque output of electric motors. 

As the adoption of EVs increases, the demand for torque converters is also expected to grow. Furthermore, the growing awareness of fuel efficiency is leading to the development of more efficient torque converters. Torque converters play a crucial role in transmitting power from the engine to the transmission, and their efficiency can significantly impact the overall fuel consumption of a vehicle.As a result, manufacturers are investing in research and development to improve the efficiency of torque converters, which is expected to further drive the growth of the market.

Technological Advancements

Technological advancements are another key driver of the Global Automatic Transmission Torque Converter Market Industry. Manufacturers are continuously developing new and innovative torque converter designs to improve performance, efficiency, and durability. For instance, some manufacturers are developing torque converters with integrated clutches, which can improve fuel economy and reduce emissions. In addition, the advent of new materials and manufacturing techniques is enabling the production of lighter, more compact, and more efficient torque converters.These advancements are expected to further drive the growth of the market.

Growing Demand from Emerging Markets

The growing demand from emerging markets is also a major driver of the Global Automatic Transmission Torque Converter Market Industry. Emerging markets, such as China, India, and Brazil, are experiencing rapid economic growth and urbanization. This is leading to an increase in the demand for passenger vehicles, including automatic transmission vehicles. As a result, the demand for automatic transmission torque converters is also increasing in these markets.

Automatic Transmission Torque Converter Market Segment Insights:

Automatic Transmission Torque Converter Market Vehicle Type Insights

The Global Automatic Transmission Torque Converter Market is segmented based on Vehicle Type into Passenger Cars, Light Commercial Vehicles, and Medium and Heavy Commercial Vehicles. Among these segments, the Passenger Cars segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing production and sales of passenger cars globally. The Light Commercial Vehicles segment is anticipated to witness significant growth over the forecast period.The rising demand for light commercial vehicles for both commercial and personal use is driving the growth of this segment. 

The Medium and Heavy Commercial Vehicles segment is projected to grow at a moderate pace during the forecast period. The increasing demand for heavy-duty vehicles for transportation and logistics is expected to drive the growth of this segment. In terms of revenue, the Global Automatic Transmission Torque Converter Market for Passenger Cars is estimated to be valued at USD 8.9 billion in 2023 and is projected to reach USD 11.2 billion by 2032, exhibiting a CAGR of 3.2% during the forecast period.

The Light Commercial Vehicles segment is expected to grow from USD 3.9 billion in 2023 to USD 5.1 billion by 2032, registering a CAGR of 3.4%. The Medium and Heavy Commercial Vehicles segment is anticipated to grow from USD 2.1 billion in 2023 to USD 3.3 billion by 2032, with a CAGR of 3.6%. The growth of the Global Automatic Transmission Torque Converter Market is driven by factors such as rising vehicle production, increasing demand for fuel-efficient vehicles, and government regulations promoting the adoption of automatic transmission systems.However, the market growth may be hindered by factors such as the high cost of automatic transmission systems and the growing popularity of electric vehicles

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automatic Transmission Torque Converter Market Transmission Type Insights

The Global Automatic Transmission Torque Converter Market is segmented by Transmission Type into 6-speed Automatic Transmission, 7-speed Automatic Transmission, 8-speed Automatic Transmission, and 9-speed Automatic Transmission and Above. Among these segments, the 8-speed Automatic Transmission segment is expected to hold the largest market share in 2023, owing to its increasing adoption in mid-range and luxury vehicles due to its improved fuel efficiency and performance compared to lower-speed transmissions. The 9-speed Automatic Transmission and Above segment is projected to witness the highest growth rate during the forecast period, driven by the rising demand for high-performance vehicles and the need for improved fuel economy.

Automatic Transmission Torque Converter Market Application Insights

The application segment is a critical aspect of the Global Automatic Transmission Torque Converter Market segmentation. It categorizes the market based on the end-use of torque converters in various applications. Two significant application segments are 'New Vehicles' and 'Replacement Market'. New Vehicles: The new vehicles segment accounted for a substantial share of the Global Automatic Transmission Torque Converter Market revenue in 2023 and is projected to maintain its dominance throughout the forecast period.

Growing production and sales of new vehicles, especially in emerging economies, drive the demand for automatic transmission torque converters. Increasing adoption of automatic transmissions in passenger cars, SUVs, and light commercial vehicles contributes to the segment's growth. Replacement Market: The replacement market segment is expected to witness steady growth over the forecast period. Aging vehicles and increasing mileage lead to the need for replacement of worn-out or damaged torque converters. Independent repair shops and aftermarket suppliers play a crucial role in servicing and replacing torque converters in older vehicles. Advancements in torque converter technology and the availability of remanufactured units present opportunities for the replacement market.The Global Automatic Transmission Torque Converter Market segmentation provides valuable insights into the industry's dynamics and helps stakeholders understand the growth potential of different applications. By analyzing these segments, manufacturers can align their product development and marketing strategies to meet specific customer needs and drive market growth.

Automatic Transmission Torque Converter Market Converter Design Insights

The Global Automatic Transmission Torque Converter Market is segmented by Converter Design into Lock-up Torque Converter and Non-Lock-up Torque Converter. In 2023, the Lock-up Torque Converter segment held the largest market share, accounting for over 60% of the global market. The Lock-up Torque Converter segment is expected to continue to dominate the market during the forecast period, owing to its advantages, such as improved fuel efficiency and reduced emissions. The non-lock-up Torque Converter segment is expected to witness a significant growth rate during the forecast period due to its increasing adoption in heavy-duty vehicles and off-road applications.

Automatic Transmission Torque Converter Market Regional Insights

The regional segmentation of the Global Automatic Transmission Torque Converter Market provides insights into the market's geographic distribution and performance. North America is expected to hold a significant market share due to the presence of major automotive manufacturers and a high adoption rate of automatic transmission vehicles. Europe is another key market, driven by stringent emission regulations and a growing demand for fuel-efficient vehicles. The APAC region is projected to witness substantial growth, fueled by rising disposable income and increasing vehicle production in countries like China and India.South America and MEA are expected to contribute a smaller share to the global market, but they offer growth potential due to expanding automotive industries.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automatic Transmission Torque Converter Market Key Players And Competitive Insights:

Major players in Automatic Transmission Torque Converter Market industry are constantly striving to maintain their competitive edge by investing in research and development, expanding their product portfolios, and forming strategic partnerships. Leading Automatic Transmission Torque Converter Market players are focusing on developing innovative products that meet the evolving needs of customers and comply with regulatory standards. The Automatic Transmission Torque Converter Market landscape is characterized by a high level of competition, with key players adopting various strategies to gain market share. 

Players are investing heavily in research and development to introduce advanced technologies and enhance the performance of their products. Partnerships and acquisitions are common strategies used by players to expand their market reach and strengthen their market position. Collaborations with automakers and suppliers provide players with access to new markets and distribution channels.ZF Friedrichshafen AG, a leading player in the Automatic Transmission Torque Converter Market, offers a wide range of torque converters for various applications. The company's focus on innovation and customer satisfaction has enabled it to maintain a strong position in the market. ZF has a global presence, with production facilities in several countries, catering to the diverse needs of its customers. 

The company's commitment to sustainability and environmental protection has also contributed to its reputation as a responsible corporate citizen.Aisin AW Co., Ltd., another prominent player in the Automatic Transmission Torque Converter Market, is renowned for its advanced engineering capabilities and commitment to quality. The company's torque converters are known for their durability, reliability, and efficiency. Aisin AW has a well-established global network, with production facilities in Japan, the Americas, and Europe, allowing it to cater to the needs of a diverse customer base. The company's focus on research and development has resulted in the introduction of innovative torque converter designs that meet the latest industry standards and customer expectations.

Key Companies in the Automatic Transmission Torque Converter Market Include:

• Valeo


• Dana


• JATCO


• Allison Transmission


• Aisin


• Continental


• Hyundai Mobis


• Punch Powertrain


• Jatco Ltd. (Nissan)


• GKN Driveline


• Schaeffler


• BorgWarner


• Jatco (Nissan)


• Magna International


• ZF Friedrichshafen AG

Automatic Transmission Torque Converter Market Industry Developments

The global automatic transmission torque converter market size was valued at USD 14.58 billion in 2023 and is projected to expand at a CAGR of 3.05% from 2024 to 2032. Rising demand for fuel-efficient and comfortable driving experience, along with increasing production of passenger cars, is driving market growth. Furthermore, government regulations on reducing carbon emissions and the adoption of electric and hybrid vehicles are creating opportunities for the market. Key industry participants are focusing on developing innovative and lightweight torque converters to meet these demands.

Recent advancements include the integration of lock-up clutches and variable-displacement designs, which improve fuel efficiency and performance.

Automatic Transmission Torque Converter Market Segmentation Insights

Automatic Transmission Torque Converter Market Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicles


• Medium and Heavy Commercial Vehicles

Automatic Transmission Torque Converter Market Transmission Type Outlook

• 6-Speed Automatic Transmission


• 7-Speed Automatic Transmission


• 8-Speed Automatic Transmission


• 9-Speed Automatic Transmission and Above

Automatic Transmission Torque Converter Market Application Outlook

• New Vehicles


• Replacement Market

Automatic Transmission Torque Converter Market Converter Design Outlook

• Lock-up Torque Converter


• Non-Lock-up Torque Converter

Automatic Transmission Torque Converter Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa