Apple's introduction of its touch-activated iPhone seems likely to kick-start the touchscreen industry, a report claims.

A new study from the Handset Component Technologies service at Strategy Analytics claims that 115 million touchscreen-only phones will ship within two years.

The research firm expects the iPhone to sell millions of units when it ships, and notes that it's the user interface (which Apple has developed and heavily patented) that sets the iPhone apart.

"The introduction of the iPhone leads us to strengthen our existing view that the market for touchscreen phones is set to take off very soon," said Stuart Robinson, director of the Handset Component Technologies service at Strategy Analytics.

Apple is not the only company preparing a touchscreen mobile phone. LG Electronics expects to have its touch-enabled mobile available in the UK next month.

Robinson expects touchscreen manufacturers, Synaptics, ALPS, Cypress, Quantum Research and Immersion to gain more business as a result of the interest in their technologies generated by the iPhone.

As a result of climbing demand, the cost of such screens will be likely to decline by "about" 50 per cent within two years, the analysts explain.