A touch overlay, or panel, is essentially the sensor portion of a touch display, but in discrete form. Together with a controller, touch overlays can enable touch sensing for designs using LCD displays that lack this function.
There are many different touch technologies in use today, each with their own strengths and weaknesses. For example, resistive touch technology is relatively simple and widely available. A touch is sensed when a pressing force bends a conductive layer into contact with another below it, creating a voltage divider-type circuit. Resistive touchscreens can enable higher resolution at a lower cost when compared with capacitive touchscreens.
In comparison, capacitive touchscreens can offer superior optical qualities. Also, a flexible top layer is not required, so capacitive screens can be made highly durable and environmentally resistant. Surface capacitive touchscreens, an earlier technology still in use, contain a single conductive sheet coated with an electrically insulative layer. Projected capacitive touch sensors are a more recent development, ideal for small to medium sized screens and widely used in smartphones.