Automotive Torque Converter Market Overview
The global automotive torque converter market is expected to witness considerable growth in the coming years due to the increasing production of automobiles, growing demand for automatic transmission systems, and rising concerns regarding the safety in vehicles. Globally, vehicles with automatic transmission are gaining traction, as this form of transmission is more economical and safer than manual transmission. Thus, the growing demand for automatic transmission systems can be viewed as one of the key factors fueling the demand for torque converters, globally.
On the basis of vehicle type, the automotive torque converter market is classified into passenger cars, light commercial vehicles (LCVs), and medium and heavy commercial vehicles (M&HCVs). Of these, the passenger car category held the largest share in the total sales of torque converters during the historical period and is anticipated to continue dominating the market in the coming years. The rising demand for better driving experience, comfort, and safety in passenger cars is the major factor driving the market growth of this category.
Based on transmission, the automotive torque converter market is categorized into continuously variable transmission (CVT), automatic transmission (AT), and dual-clutch transmission (DCT). Of these, AT is expected to continue dominating the market share during the forecast period. However, the market is expected to witness the fastest growth in the CVT category, owing to the rising use of CVT in premium vehicles, which are witnessing a high demand in emerging countries such as China and India.
On the basis of hybrid vehicle, the automotive torque converter market is categorized into hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs). With rising environment concerns and implementation of stringent automobile emission standards, the sale of PHEVs is projected to increase significantly in the near future. Hence, during the forecast period, the fastest growth in the market is expected from PHEVs.
Globally, North America accounted for the largest share in the automotive torque converter market during the historical period, mainly due to the early adoption of AT and the high demand for premium vehicles in the region. Additionally, the market growth in the region is driven by the growing adoption of automatic transmission systems in medium and heavy-duty trucks. Besides, factors such as ease of driving, high fuel efficiency, and growing demand for comfort in vehicles are encouraging fleet owners to opt for automatic transmission in medium- and heavy-duty trucks. Moreover, owing to the rising disposable income of the people in the region, North America is anticipated to lead the global market during the forecast period as well.
Automotive Torque Converter Market Dynamics
Globally, manufacturers are striving to develop new techniques to increase the operational efficiency of torque converters. Longer lock-up range, advanced manufacturing processes, and reduction in the weight and size of these converters are some of the major trends witnessed in the automotive torque converter market.
The increasing adoption of automatic transmission systems, especially in passenger cars, is the key factor fueling the demand for automotive torque converters, globally. Torque converters are necessary for vehicles with automatic transmission systems. The vehicles with these systems are more efficient and safer, offer better driving experience, and are suitable for stop-and-go driving. Owing to the aforementioned factors, the demand for automatic transmission systems is increasing, which, in turn, is expected to benefit the automotive torque converter market during the forecast period. In addition, the rise in the production and sales of HEVs and PHEVs is expected to support the market growth in the coming years.
Although torque converters are competitively priced and affordable, the high replacement and repair costs associated with them restrain their market growth to some extent. The labor and component costs increase the overall repairing cost of these converters. Besides, the limited availability of specific components for replacement purposes often increases the cost of repairs, thus negatively impacting the growth of the automotive torque converter market.
Automotive Torque Converter Market Competitive Landscape
Some of the key players operating in the global automotive torque converter market are Aisin Seiki Co. Ltd., BorgWarner Inc., Continental AG, Delphi Technologies, EXEDY Corporation, Isuzu Motors Limited, JATCO Ltd., Precision Industries, Schaeffler AG, Sonnax Transmission Company Inc., Transtar Industries Inc., Valeo SA, Voith GmbH & Co. KGaA, and ZF Friedrichshafen AG.
The report also provides country-wise market analysis. Some of the major countries covered in the report are the U.S., Canada, Mexico, Germany, the U.K., France, Japan, China, India, South Korea, Brazil, and the U.A.E.