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

AEBN Reveals Ariel Demure as Top Trans Star for Q3 of 2026

AEBN has named its top trans stars for the third quarter of 2026, with Ariel Demure landing atop the leaderboard.

Porn Piracy: How AI Is Transforming Content Theft and Protection

Gone are the days when the word “pirate” primarily conjured images of clever scoundrels like Captain Jack Sparrow, swaggering across the high seas in search of gold and jewels. Today’s most prolific pirates operate in the darkest corners of the internet, armed with bots, scrapers and generative AI.

Playhaus Network Launches Podcast Platform Through PAYSITE

Entertainment website The Playhaus Network is launching its new podcast platform through PAYSITE.

Kylie Rocket, Derek Kage Cap AEBN's Top Stars for 3rd Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the third quarter of 2026.

JustFor.fans Launches Android Version of 'JFF Create' Mobile App

JustFor.fans (JFF) has rolled out an Android-compatible version of its creator management mobile app, JFF Create.

Kink.com Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Kink.com in a case against a copycat website using an infringing domain.

On-Chain JAV Distribution Platform 'HandSome' Goes Live With Open Beta

Fukuoka tech firm Fidem has officially rolled out an open beta version of HandSome, a new Japanese Adult Video (JAV) content distribution platform built on blockchain technology.

Arcom Investigates MYM Over SREN Compliance

French media regulator Arcom is investigating creator platform MYM to determine whether the site may have violated age assurance rules and/or other requirements of France’s Security and Regulation of the Digital Space (SREN) law.

England, Wales to Enforce 'Extreme' Content Laws Starting Nov. 6

England and Wales will begin enforcing new laws criminalizing depictions of “non-fatal strangulation,” as well as sexual content in which adults portray underage characters, starting Nov. 6, the U.K. Ministry of Justice announced Friday.

Report: UK Film Classification Board to Monitor 'Extreme' Content Online

The U.K. government has tapped the British Board of Film Classification (BBFC) for a pilot program to monitor online pornography for illegal and “extreme” content, as it prepares to enforce new content restrictions, British media outlet Sky News is reporting.

Show More