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The Upside Potential for Touch Screen Technologies

The total revenue for touch screen modules will reach $16 billion in 2012, and nearly double in six years, reaching $31.9 billion by 2018, according to the latest market study by NPD DisplaySearch.

The market growth is being driven by increased demand from applications such as media tablets, smartphones, and emerging new notebook PCs. While the leading touch technology is projected capacitive touch, demand for other technologies is also on the rise.

Touch screen penetration has rapidly increased in mobile phones, handheld games, and game consoles, as well as in tablet applications, which are forecast to collectively account for more than $13.6 billion in touch screen revenues this year.

In addition, NPD DisplaySearch forecasts strong touch screen growth over the next several years driven by demand in larger display applications such as convertible or hybrid notebook PCs.

Today, mobile phones are the biggest application for touch screens in terms of unit shipments, accounting for three-fourths of units shipped in 2011. It's forecasts that 1.2 billion touch screens will ship for mobile phone applications in 2012, that's up by 68 percent Y/Y.

Media tablets is a fast-growing application for touch screens. Shipments tripled in 2010 and reached 79.6 million in 2011. Growth continues to be strong, with a forecast of more than 130 million touch screens for tablets in 2012, and more than 190 million in 2013.

Moreover, revenues for touch screens in tablet PCs are expected to grow by more than $3 billion in 2013.

Touch penetration is also expected to increase dramatically in convertible or hybrid notebook PCs. It's forecast that touch screen penetration on notebook PCs will increase from 2 percent in 2011 to about 8 percent in 2013.

Over the next few years, all-in-one PCs and automobile monitors are expected to contribute to touch screen market growth as well. Touch technologies with high transmittance, low power consumption, multi-touch or gesture recognition will benefit the most.

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