Resistive touch technology will maintain an over 50% market share in the handset market in 2011 with capacitive touch technology closing in at 40-50%, as touch panel makers continue to expand their capacity for the technology, according to Taiwan-based touch panel maker Young Fast Optoelectronics chairman TJ Lin.

Capacitive touch panels now account for about 19% of Young Fast's total revenues, and it is expected to reach 30% in the fourth quarter and 40-50% in 2011, the company noted.

Fellow maker J Touch expects capacitive touch panels to account for 45% of its total revenues in the second half of 2010, up from a current level of 20%, and it expects capacitive touch panel revenues to exceed revenues for resistive touch panels in 2011, market sources added.

Lin indicated that capacitive touch panels are either film based or glass based, and with the advantage of lower production costs, film-based capacitive touch panels are favorable in small-size application. Glass-based capacitive touch panels account for only 20% of the handset market, currently, besides iPhones, Lin added.

Demand for resistive touch panels remains for entry-level products, Lin said, adding that 2.8-inch and smaller handset touch panels are mostly resistive based.