Forecast Sees Virtual Reality, Augmented Reality to Hit $150B by 2020

LOS ANGELES — A new report released today says that virtual reality and augmented reality markets are poised for a huge slice of the digital pie.

According to Digi-Capital, the virtual reality and augmented reality market could hit $150 billion in revenue by 2020.

The Internet consulting firm said that augmented reality will take the lion’s share in the forecast at about $120 billion and virtual reality at $30 billion.

The forecast said that augmented reality market has more potential because it is less invasive than virtual reality headsets that need to be strapped to users’ faces.

The Digi-Capital report bolsters hope for what many in the adult entertainment industry see as the next-biggest technological leap — the marriage of virtual reality, teledildonics and haptic devices.

At XBIZ 360 earlier this year, Brian Shuster, who founded Utherverse, perhaps best known as the parent of the Red Light Center virtual world, said that the conventional adult entertainment industry needs to take a clear look into the crystal ball.

“This year promises to usher in the beginning of the most significant new technological changes to the adult industry since the introduction of the World Wide Web in the mid-1990s,” Shuster said. “These sweepingly disruptive innovations and products will open the doors for new opportunities, but they will also lay waste to many established business models and companies.”

Digi-Capital said there are pluses and minuses for hardware in perspective of the current virtual and augmented reality titans, like Oculus Rift and perhaps Apple’s future roll out.

“Facebook placed an early bet on Oculus, which might win virtual reality but not address the larger AR market. Google learned from Glass, and had the foresight to invest in Magic Leap,” according to Tim Merel, managing director of Digi-Capital. “HoloLens could allow Microsoft to regain the glory it lost to Apple in the last decade. And Apple? We would love to see an augmented 'One more thing .…'”

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

German Court: Regulator Can't Block Entire IG Accounts, Only Posts

A German court has ruled that while a regional media regulatory agency may block specific Instagram posts that include material deemed harmful to minors, it cannot ban an entire Instagram account due to such a post.

Brazil Lays Out Preliminary Guidelines for New AV Requirements

President Luiz Inácio Lula da Silva on Wednesday signed a decree establishing guidelines for new regulations requiring adult websites to age-verify users located in Brazil.

Senate Committee Debates Section 230 Reform

The U.S. Senate Committee on Commerce, Science, and Transportation held a hearing Wednesday on potential changes to Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Pearl Industry Network Offers Free Creator Memberships

Industry trade group Pearl Industry Network (PiN) has launched its free creator membership initiative.

Sam Bird Acquires Fanblast

Sam Bird, former co-director of global talent agency Surge, has acquired creator monetization tool Fanblast and named himself CEO.

'SheHerGirls' Launches Through Paysite.com

The braintrust behind PoleVixens has officially launched a new membership site, SheHerGirls, also through Paysite.com.

FTC Invites Public Comment on 'Click to Cancel' Rulemaking

The Federal Trade Commission (FTC) announced this week that it is seeking public comment on whether it should amend its Negative Option Rule to better address deceptive or unfair practices.

Aylo Rebuts Indiana AV Suit Claims Over VPN Access

Aylo this week asked a Marion Superior Court judge to dismiss Indiana’s lawsuit alleging that the company violated the state’s age verification law by failing to prevent access by users who employ VPNs and similar means to avoid geolocation.

'PSMTickling' Launches Through Paysite.com

PSMTickling.com has officially launched through Paysite.com.

Show More