[178 Pages Report] The Global Torque Converters Market is expected to grow at a high CAGR of 5.4% during the forecasting period (2022-2029).
Torque Converters Market - Strategic Insights
By Transmission Type, By Component, By Vehicle Type, By Distribution Channel and By Region
Report Insights Covered
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.
Fastest Growing Region
Largest Market Share
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Torque converters are a type of fluid coupling capable of producing torque that can transfer rotating power for driving the load.
The market is driven by the rising demand for automatic transmission systems along with the increasing sale and production of commercial, heavy-duty, and passenger vehicles all over the world
The torque converter is extensively used in vehicles to reduce efforts and increase transmission efficiency. Torque converters have many advantages, including high-efficiency and less-skill requirements. It also helps in reducing accidents and provides smoothness the driving. A torque converter is used in many kinds of automotive machines, including automatic transmission systems in low, medium, and heavy-duty passenger vehicles, buses, and trucks. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2019, the total number of passenger cars and heavy trucks produced were 67,149,196 and 4,142,806 respectively. Hence, with the rising demand for vehicles, there is a rise in the demand for torque converters which has a positive impact on the growth of the market.
There is a rise in the adoption of automatic transmission systems by leading companies and raising the investments by leading players to manufacture the advanced technology-based torque converter in the vehicle. For instance, in 2020, Volkswagen T-Roc SUV with an automatic transmission system was launched In India. Furthermore, in 2020, Mercedes-Benz planned to launch 10 luxury cars in India. As torque converters are an integral part of the automatic transmission systems, therefore the market is projected for positive growth.
CO2 emission and overheating of the car due to torque converters are some of the factors that are restraining the growth of the market.
COVID-19 Impact Analysis
The spread of COVID-19 across the world has negatively affected the automotive industry. China is a production hub for raw materials, auto products, and finished goods. But due to the COVID-19 pandemic, the supply chains were disrupted from China to other countries of the world. Halted production of raw materials also affected the production of passenger and commercial vehicles and automatic and high-end vehicles. Due to this unexpected circumstance, the global torque converters market’s growth was hurt. The outbreak of the COVID-19 pandemic has also forced many automotive companies to halt their manufacturing operations. The overall situation of the manufacturing units due to the pandemic has reduced the sales of the torque converters.
The demand for torque converters is projected to rise post-pandemic due to their increasing integration of heavy-duty trucks. The increasing consumer preference for e-commerce platforms is expected to increase the demand for heavy-duty trucks, which is estimated to drive the growth of the market over the forecasting period (2021-2028). Also, consumers in developed countries are more likely to buy products from e-commerce platforms, which will lead to an increase in the number and volume of goods transported by cargo trucks which will lead to an increase in the adoption of torque converters in trucks. The resumption of manufacturing operations will also play a major part to boost the production and sales of vehicles. Hence, the global torque converters market is expected to grow post-pandemic.
The global Torque converters market is segmented based on transmission type, Component, Vehicle Type, Distribution channel and region.
In terms of transmission type, the global torque converters marker is bifurcated into CVT (continuously variable transmission), AMT (Automated Manual Transmission), and DCT (Dual-Clutch Transmission)
Among these, the AMT (Automated Manual Transmission) segment has the highest market share in 2019 because of the increasing sale of automated manual transmission vehicles worldwide due to the rising population, especially in the low and middle income from developing countries. For example, in the 2019 fiscal year, the Company Maruti Suzuki sold more than 6 Lac cars with automated manual transmission In India. Also in India, from 4.8 percent market share in the fiscal year 2020, Tata Motors had a market share of over 9 percent in the fiscal year 2021, with a 69 percent growth in sales.
Similarly, CVT (continuously variable transmission) and DCT (Dual-Clutch Transmission) segments are also growing faster due to the rising global sale of hybrid and electric vehicles with a surge in people's awareness of these vehicles. According to the International Energy Agency, in 2019, global electric vehicle production has been reached around 140 million vehicles, excluding two and three-wheelers. This propels the CVT and DCT segmental growth, which are used in these vehicles.
Depending on the component types, the global torque converter market is divided into Clutch Plate, Damper, Impeller, Turbine, and Stator
Among these, the Clutch Plate segment had the highest share in 2019. This is primarily due to the rising sale and production of vehicles that require clutch plates in huge amounts for torque transmission purposes. For example, the company LuK manufactures more than 2 million clutches as conventional torque converters annually for the automatic transmission market.
Similarly, Damper, Impeller, Turbine, and Stator segments are also growing faster due to a surge in demand for electricity worldwide with a surge in the global population. Turbines, impellers, stators are used in combination with a generator for generating electrical power in various power plants worldwide. For example, in 2019, globally 10 biggest power plants were announced to be constructed in India and China to cope with the rising electricity demand. These plants have a total capacity of around 64.7GW which the majority are hydroelectric with a contribution of 57%, thermal with 28%, and nuclear with 15% capacity. These plants require generators, impellers, and turbines in huge amounts, propelling this segmental growth in developing countries.
Depending on the vehicle type, the global torque converters are segmented into Heavy Commercial vehicles (HCV), Passenger cars, Light Commercial vehicles (LCV), and others
Among these, the Passenger car segment had the highest market share in 2019. This growth is anticipated due to a rise in sales and production due to the growing population demand for traveling around the globe. According to the International Organization of Motor Vehicle Manufacturers (OICA), 64,341,693 units of the total number of passenger cars were sold worldwide in 2019.
Similarly, the Heavy Commercial vehicles (HCV), Light Commercial vehicles (LCV) segment is also growing faster due to an increase in the demand for transportation of goods with a surge in global population and rising vehicle production. According to the International Organization of Motor Vehicle Manufacturers (OICA), 27,016,764 units were sold, including heavy trucks, light vehicles, buses, and coaches worldwide in 2019.
By region, the global Torque converters market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa
Among all of the regions, Asia Pacific is the dominant region for the global torque converters market and expected to grow at the highest CAGR during the forecasted period due to the presence of a huge number of manufacturing facilities with the surge in the sale of automotive vehicles followed by North America region. As per the International Organization of Motor Vehicle Manufacturers (OICA) in 2019, in the Asia Pacific and the Middle East region, the total number of commercial vehicles sold was around 8,043,351 vehicles, heavy trucks, buses, and coaches. This propels the demand for torque converter required for power transmission for manufacturing vehicles.
North America is also growing faster for the torque converters market, owing to rising consumer spending with rising production and sale of light commercial vehicles people in this region. According to the Center for Automotive Research, in 2019, the total light vehicle production reached 2.8 million units in the U.S., followed by Europe.
The global Torque converters market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Hyundai, Luk, ZF, TATA, BorgWarner Aisin, Schaeffler, Mercedes-Benz, Valeo, Ford, EXEDY, Volkswagen Group, and Toyota are the leading market players with significant market share.
Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. For instance, on 2nd October 2020, BorgWarner acquired Delphi Technologies for around USD 3.2 billion. This acquisition increases electric vehicles' production capacity, which requires products like automatic transmissions, emissions technology, and thermal control systems to improve engine and transmission efficiency. Also, in 2021, BorgWarner completed the tender offer for shares of Akasol AG, resulting in BorgWarner owning 89.08% of Akasol’s outstanding shares. With this, Akasol becomes a majority-owned subsidiary of BorgWarner. In January 2021, Volkswagen announced that its sales in 2020 dropped by 9.9% in China, 23.4% in western Europe, and 17.1% in North America due to the COVID-19 pandemic, indicating the negative impact it on the market. But the companies have recovered post-pandemic and are looking set to bring the production and sale of cars back on track.
Overview: Hyundai Motor Company is the world's largest integrated automobile manufacturing company.
Product Portfolio: The Company manufactures cars, crossovers/SUVs, hybrid and electric vehicles, hydrogen vehicles, light commercial vehicles, trucks, and buses.
Key Development: Hyundai Motor Company and Kia Corporation sold a combined 174,043 cars in the US market in May 2021 to surpass Ford Motor Company, which sold 13,523 units, for the first time since they entered the market 35 years ago.
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**The global Torque converters market report will provide access to approximately 53 market data tables, 44 figures, and 178 pages
What is the Projected CAGR value of the Torque Converters Market?
Torque Converters Market is expected to grow at a CAGR of 5.4% during the forecasting period 2022-2029.
Which region controlled the global market during 2022-2029?
North America region Controls the Torque Converters Market during 2022-2029.
Which is the fastest growing region in the Torque Converters Market?
Among all regions, Asia Pacific is the fastest growing market share during the forecast period.
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