Global touch panel market to grow more than 30% on year in 2010, says DisplaySearch

The global touch panel industry is on track for more than 30% on year growth in 2010, according to DisplaySearch.

"Despite the worldwide economic downturn and sluggish recovery in 2010, total touch panel shipments had almost 30% growth in 2009, and this segment is on track for healthy growth again in 2010," noted Jennifer Colegrove , VP of emerging display technologies for DisplaySearch. "Penetration of touch screens in medium- to large-size electronic devices such as netbook/tablet PCs and gaming is rapidly increasing in the second half of 2010."

The netbook/tablet PC category is the fastest growing application for touch panels in 2010, with 6.3 million shipped in the first half. Touch panel suppliers are very optimistic about this application, with more than 20 million units planned in the second half of the year. There is uncertainty about the timing, as some shipments may be delayed to the first quarter of 2011. A majority of the netbook/tablet PC touch panel shipments are from Wintek, who led in the segment, followed by TPK Touch Solutions.

Touch panel growth differs by region, due to the differing focus by touch technology and customer base. Taiwan is the leading region in terms of shipments and revenues. Taiwan's share of worldwide touch panel shipments accounted for 43.5% in 2009. Taiwan-based suppliers, especially in projected capacitive, are benefiting from the growth in netbook/tablet PCs. Capacity expansions are under way for 2011 as well.

China's top touch module makers took advantage of the growing local consumer and commercial market, which resulted in their forecast shipments increasing nearly 39% on year in 2010. However, most China-based touch panel suppliers are manufacturing resistive touch panels, and projected capacitive capacity is still limited to factories built by Taiwan- and Japan-based suppliers.

Touch controller IC suppliers in the US and Europe are reaching record high shipments in 2010. The controllers are critical for touch solutions in handsets and tablet PCs.

Japan-based touch panel suppliers are facing challenges from other suppliers in Asia due to the strength of the Japanese yen. Most Japan-based touch suppliers will have flat growth in 2010 over 2009.

Optical imaging touch is evolving, as suppliers work with LCD panel makers to try to reduce bezel thickness, in the hopes of increasing adoption. A dramatic example of optical imaging touch can be seen in the Microsoft Kinect, which will increase shipments by three to five times, if the product sells as well as Microsoft forecasts.

ITO replacement materials are being used in touch screens in 2010. Infrared type touch screens were adopted by e-book readers in 2010, while projected capacitive is expected to become the leading touch technology in terms of revenues for the year.