A new report from IHS says that embedded touch displays are forecast to comprise nearly 40% of touch module shipments for mobile phone applications in 2015. In-cell and on-cell touch displays for mobile phones grew 47% year over year, accounting for 36% of shipments in 2014.

IHS says that Apple and Samsung accounted for more than 40% of the global smartphone market. The growing use of in-cell and on-cell touch technologies by these two companies is driving the direction of the overall touch sensor market.

“The technical touch sensor evolution is changing the face of touch-panel competition,” said Calvin Hsieh, director for IHS Technology.

According to the Quarterly Touch Panel Market Analysis report, in-cell touch displays benefited from the success of Apple iPhone 6 and from Japan Display’s decision to approach name brands with its Pixel Eyes module. That move helped the company post a 51% shipment growth year over year in 2014. On-cell TFT LCD successfully entered the entry-level and mid-range smartphone market, growing from nearly 5 million units in 2013 to 67 million units in 2014. On-cell AMOLED unit growth achieved 9% growth year over year, largely because Samsung’s smartphone growth slowed last year.

Since 2014, panel makers’ embedded touch display solutions have extended coverage into all smartphone segments, IHS says.

“Due to fierce market competition, declining average selling prices and panel oversupply, panel makers hope embedded touch displays will sway their name-brand customers with the technology’s advantages, such as simplified structure, thickness and competitive costs,” Hsieh says.

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