Torque Converter Market Set to Reach USD 12.61 Billion by 2032
The global torque converter market is poised for substantial growth, with a projected value of USD 12.61 billion by 2032, up from USD 8.40 billion in 2024. According to a report by SNS Insider, this growth represents a compound annual growth rate (CAGR) of 5.25% from 2025 to 2032. Key drivers include increased adoption of automatic transmissions, the rising prevalence of hybrid and electric vehicles, and advancements in powertrain technologies.
The U.S. market for torque converters alone is expected to more than double, reaching USD 3.57 billion by 2032, with a CAGR of 4.13%. This growth is largely attributed to a shift towards automatic vehicles and stringent fuel efficiency regulations, alongside evolving consumer preferences for enhanced driving comfort.
Market Dynamics and Technological Innovations
Torque converters play a vital role in automatic transmission systems, allowing the engine to operate independently of the transmission. This design facilitates smooth acceleration and efficient power transfer. As the automotive industry embraces electrification, manufacturers are integrating innovative features such as lock-up clutches and advanced turbine blades to enhance performance.
The U.S. market is thriving due to a strong prevalence of automatic vehicles and significant investments in torque converter upgrades for hybrid powertrains. This focus on fuel efficiency and emissions reduction aligns with current trends in the automotive sector.
The report highlights that the automatic transmission segment led the market in 2024, accounting for over 47.12% of the total share. Its appeal lies in delivering a convenient driving experience, particularly in urban environments characterized by frequent stop-and-go traffic. The continuously variable transmission (CVT) segment is projected to grow at the fastest rate, with a CAGR of approximately 5.70% from 2025 to 2032, driven by its seamless gear transitions that enhance fuel efficiency.
Regional Trends and Competitive Landscape
North America currently dominates the torque converter market with a revenue share of around 42.56% in 2024. This leadership is attributed to a robust automotive manufacturing base and a widespread adoption of automatic transmissions. The market is expected to benefit from ongoing investments in research and development aimed at improving thermal management and torque multiplication efficiencies.
Conversely, the Asia Pacific region is anticipated to be the fastest-growing market, with a projected CAGR of 6.33% from 2025 to 2032. Rapid urbanization, increasing household incomes, and growing vehicle ownership in countries like China and India are significant factors propelling demand for more efficient automatic drivetrains.
The report lists major players in the torque converter market, including Schaeffler, ZF Friedrichshafen, Aisin, BorgWarner, and Continental AG, among others. These companies are focusing on innovative technologies that enhance driving comfort and performance, reflecting the industry’s commitment to meeting evolving consumer expectations.
As the torque converter market accelerates, the integration of advanced components designed to improve efficiency and comfort will play a crucial role in shaping the future of both passenger and commercial vehicles. With a diverse range of applications across OEM and aftermarket sectors, the torque converter market is set to offer numerous opportunities for growth and innovation.
