PUBLISHER: Mordor Intelligence | PRODUCT CODE: 544377
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 544377
The Automotive Torque Converter Market is expected to register a CAGR of over 6.5% during the forecast period.
With the improvement in technology, semi-automatic and fully automatic commercial vehicles are as fuel-efficient as manual commercial vehicles. In addition, the price difference between manual transmission has reduced significantly, making it affordable to buy. The sales of commercial vehicles have increased over the years due to increasing activities in the construction, mining, tourism, and logistics sectors.
With the improvement in technology, fully automatic commercial vehicles are as fuel-efficient as manual commercial vehicles. Automatic Transmission provides the user with a fatigue-free experience as the user is free from frequent gear shifting. Ease of driving, especially in heavy traffic is creating a demand for an automatic transmission. Over the years many major automotive companies are focusing on technologies to improve automatic transmission in commercial vehicles.
In the light of increasing commercial vehicle sales and higher penetration of automatic transmission systems, the market is expected to grow significantly over the forecast period.
North America was estimated to have the largest revenue share in the market in 2019 and is expected to grow further during the forecast period. A major challenge for the market is the high labor cost associated with the replacement market. The prospects for growth of the torque converter market in America will be significantly affected by the increased adoption of automatic transmission in a heavy-duty and medium-duty commercial vehicles. High fuel efficiency, comfort, ease of driving, and low driving skill requirement will compel the fleet owners to opt for automatic transmission in heavy and medium-duty commercial vehicles. These will also draw end consumers to the passenger vehicle segment. In addition, increased adoption of automatic transmission in passenger vehicles will drive the market for torque converters significantly in this segment.
In Asia-Pacific, China has been dominating the commercial vehicle segment. Four out of ten commercial vehicles are sold in China. In 2018, China recorded 4.3 million-unit sales of a commercial vehicle, witnessing a huge growth as compared to that of 2017.
In India major automobile manufacturers are investing heavily in the research and development of automatic transmission technology passenger cars segment to increase their sales. The use of automatic transmission in passenger car segment has seen has tremendous growth. In 2019 more than 17.3% passenger vehicles sold in the country has automatic transmission as compared to 1.4% in 2011. Maruti Suzuki a major automobile manufacturer in India, the automatic variants accounts for nearly a quarter of the Celerio, Ciaz, XL6 sales.
The automotive automatic transmission market is highly consolidated, with major players, like Denso, ZF, Magna International, and Aisin Seiki, dominating the market.
Aisin Seiki supplies automatic transmission systems for small and medium commercial vehicles while Aisin AW supplies to passenger cars and small commercial vehicles.
Toyota produces automatic transmissions internally for some of its vehicles, while having some of its automatic transmissions supplied by Aisin AW and Aisin Seiki. Nissan and Mitsubishi Motors do not have in-house automatic transmission development, and have their systems supplied by JATCO. Honda, Subaru and Daihatsu produce their automatic transmissions internally. Mazda produces its systems internally for its front-wheel-drive vehicles, while having its transmissions for its rear-wheel-drive Roadster supplied by Aisin AW.