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

FSC: W.V. Age Verification Law Takes Effect June 12

The Free Speech Coalition has issued a reminder notice that West Virginia's age verification law takes effect on June 12, 2026.

Pineapple Support Taps Brad Mitchell, Jean-Micheal Veen for Senior Leadership Positions

Pineapple Support has named Brad Mitchell as its new board president and Jean-Micheal Veen as technology and development chair.

Polish Government Proposes AV Mandate for Adult Sites

Poland’s Council of Ministers on Tuesday endorsed a proposed national law that would require sites and platforms to age-verify users to prevent minors from accessing adult content online.

Brazil Launches Complaints Page for AV Violations

Brazil’s National Data Protection Authority (ANPD) on Monday debuted a portal where citizens can report possible violations of the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

FSC Launches 'Speak Out' Media Campaign for Creators

The Free Speech Coalition (FSC) has announced the launch of FSC Speak Out, a media campaign for content creators to tell their stories.

Pineapple Support, Stripchat to Host LGBTQ Support Group

Pineapple Support and Stripchat are hosting a free online support group for LGBTQ+ individuals within the adult industry, titled "LGBTQ and Proud."

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Cultpix Debuts AI-Generated Vintage Adult Films at Cannes

At this year’s Cannes Film Festival, B-movie streaming service Cultpix debuted a collection of AI-generated short films drawn from erotic magazine photo spreads published 50 years ago.

Show More