According to a market analysis report by Grand View Research, the global SexTech market size was valued at USD 31.4 billion in 2022. It is projected to experience a compound annual growth rate (CAGR) of 16.71% from 2023 to 2030.

The market’s growth is primarily driven by the increasing attention to sexual health. Companies are expanding their distribution channels to meet the rising demand for SexTech products.

As reported by TechCrunch, PitchBook data reveals that despite the industry’s relatively modest capital inflow, funding has shown stability over time.

In 2020, sex tech startups secured $352 million in funding, which increased to $422 million in 2021, following the trend seen in many sectors. However, funding decreased to $275.8 million in the following year, mirroring the broader VC investment slowdown.

Related Read: How to Start a Sex Toy Business: Choosing the Right Model for Success

Yet the situation seems to be improving. As of August 2023, sex tech startups has already raised $111.9 million. If this trend continues, they are poised to at least match, if not surpass, their 2022 funding levels.

The sextech market makes up part of the much larger global sexual wellness market.

SexTech Market Trends

  • Online dating’s popularity is also contributing significantly to the market’s growth.
  • There’s a growing demand for sextech products that help people connect intimately with their partners even when they are physically apart.
  • Players in the sextech market are focusing on product development for immersive sexual experiences.
  • Increased demand for sextech products and services enhancing user experience.
  • Sex toys equipped with remote connectivity features for smartphone app or remote control use.

COVID-19’s Impact on the SexTech Market

  • Disruptions in the supply chain and changes in consumer behaviour due to the pandemic.
  • Increased demand for remote sextech products like video chat platforms and remote-controlled sex toys during the pandemic.

SexTech Market Products

Bluetooth-enabled sex toys

In 2022, Bluetooth-enabled sex toys had the largest market share (37.9%) of the global sextech market.
These devices are expected to keep dominating the market with significant growth.

  • Bluetooth-enabled sex toys can connect to a smartphone app for easy control.
  • Users can adjust vibration patterns and intensity levels from their phones.
  • The technology is affordable to incorporate into sex toys, making them more accessible to customers.
  • Manufacturers can sell Bluetooth-based sextech products at lower prices and in high volume, boosting profits.

Audio-driven and music-activated vibrators

Music-activated sex toys and audio-driven vibrators have become increasingly popular in the sexual wellness market. These innovative sex toys use technology to sync with music and vibrate along to the beat, enhancing the sensory experience for users.

  • Considered a premium audio-to-haptics feature in the sex toy market that enhances user customization
  • This technology allows the vibrators to sync with music, sound, or even the user’s voice, causing them to vibrate in tempo with the audio source.
  • The technology combines audio stimulation with tactile sensations to enhance pleasure and create a multisensory experience.
  • OhMiBod launched the blueMotion NEX|3 in January 2020, a Bluetooth-enabled vibrating couples ring with music-listening features on the mobile.

VR Porn segment

The VR porn segment is expected to have the highest growth rate in the global Sextech market size over the next decade.

  • VR porn offers immersive and interactive experiences accessible from anywhere
  • Producers need to address legal concerns for compliance with local laws
  • Market players focusing on delivering new content weekly to increase market share