Touch panel industry oversupply

Touch panel industry oversupply

According to NPD DisplaySearch, the number of global touch module shipments continues to increase, but competition is fierce, resulting in oversupply in the touch industry. The average product price and vendor revenue continue to decrease, which will affect the profitability of glass and thin-film touch panels this year.

Xie Zhongli, an analyst with NPD DisplaySearch, said that the touch pen products have been slow to sell. From the first quarter of 2013 to the first quarter of 2014, the average price of the touch panel has dropped by 50%. It is estimated that the touch module will continue to decline this year, and the revenue of the overall touch module manufacturers will also decline. The major domestic touch panel groups include TPK, Shenghua, Yanghua, and the interface.

The number of global touch module shipments continues to grow this year, but shipments may decline by 1%. It is predicted that the number of global touch panel shipments will continue to increase from 2015 to 2018, but the annual growth rate of shipments is estimated to be within 5% or even negative growth.

In addition, some touch module manufacturers cannot survive in future industry reshuffles. However, some manufacturers have begun to prepare to invest in new markets, including replacement of traditional touch conductive materials such as ITO with new replacement materials.

The reason for the oversupply of this wave touch module industry is mainly due to the fact that sales of touch pen and AIO computers are not as expected.

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