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 © 2025 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

British Documentary Spotlights XBIZ Amsterdam With Candid Conversations

British creator and host Josh Pieters traveled to XBIZ Amsterdam to film a documentary about the annual European adult industry conference.

XBIZ 2026 to Debut 'New Talent Go-See' Special Event

XBIZ 2026, North America’s premier adult industry conference, will debut a special event designed to help new talent jump-start their careers: the New Talent Go-See.

Penthouse Announces Digital Archive Launch

Penthouse Magazine has announced that it will launch a comprehensive digital archive in 2026.

Dreamcam Joins Pineapple Support as Supporter-Level Sponsor

Dreamcam has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

AEBN Publishes Popular Searches by Country for August, September

AEBN has released the list of popular searches from its straight and gay theaters by country in August and September.

AV in Focus: A Guide to Unlocking Compliance With Clarity

The age verification era isn’t coming — it’s here. Laws are already on the books in numerous U.S. states, as well as in the U.K., France and beyond.

Canadian Privacy Commissioner Endorses National AV Bill

Philippe Dufresne, privacy commissioner of Canada, has voiced support for a bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

Ricky Johnson Launches 'Ricky's Resort' Through YourPaysitePartner

Ricky's Room studio honcho Ricky Johnson has launched his latest site, RickysResort.com, through YourPaysitePartner (YPP).

Industry Attorney Paul Cambria Retires After 50 Years of Practicing Law

After more than a half-century in practice, during which he provided the defense in some of the adult industry's most notable legal cases, attorney Paul Cambria has retired.

2026 XMA Nominations Party Set for Nov. 19 in Hollywood

The 2026 XMA nominations reveal party will take place at Keys on the Sunset Strip on Wednesday, Nov. 19, with red-carpet arrivals starting at 8 p.m.

Show More