Shipments of smartphones with a touchscreen-only interface will surpass 700 million per annum in 2016, representing 72% of total shipments, compared to over half in 2010, according to a new report by analyst firm Juniper Research.

The study Smartphone Evolution Strategies, carried out extensive research into recent and forthcoming Smartphone models and found a distinct trend away from hard-key-only interfaces.

The research firm said touchscreen displays provide enhanced user experience for many activities and free-up space on the device for a larger display, with an additional 2 to 3 inches.

In other Smartphone display forecasts, Juniper predicts that 3D-enabled shipments will reach 80 million by 2016, with two vendors, HTC and LG having launched these types of devices.

Juniper Research said the surging consumer interest in 3D technology through introduction in cinema and home entertainment, with the ability to capture 3D images and video on the device, and potentially playing 3D games will drive the adoption.

The report revealed that global smartphone shipments will reach one billion per annum in 2016, up from 302 million in 2010.

Economy Smartphones, with a retail price of $150 or lower, will account for nearly one-third of shipments in five years, and smartphones which can morph into other devices including portable games consoles, tablets and netbooks are becoming more prevalent as vendors look for new USPs.