Production and sale of virtual reality headsets have reached the multi-million mark this year and new models of these head mounted displays for gaming and entertainment launching soon are stoking Juniper Research’s forecasts that shipments will hit 30 million by 2020. More so for industrial use smart glasses with 10 million shipments this year and one billion units by 2020 predicted by AugmentedReality.Org. Digi-Capital estimates the global market for both wearable computers to be worth $120 billion by 2020.

Digital eyewear and headset  maker Vuzix Corp. (Nasdaq: VUZI) is powering the augmented reality/virtual reality revolution with the rollout of its new video headphone and smart glasses to enterprise customers and app developers. The West Henrietta, New York-headquartered company is producing and shipping this year 10,000 M300 Smart Glasses, the ugraded version of its groundbreaking M100 Smart Glasses.

One company with M300 orders is IT hardware and software seller Bechtle AG. The order will replace the M100s used in its warehouse operation. Also ordering M300s for use by its thousands of technicians is a North American facilities management consortium. Meanwhile, OEMs have show interest and Vuzix is exploring the right partner.

Vuzix’s M300 is the CES (Consumer Electronics Show) Innovations 2013 Design and Engineering Award’s Best Technology in the Wireless Handset Accessory category.  Since its commercial launch two years ago, the M100 quickly became a warehousing essential as the wearable smartphone made merchandiser’s work easier and faster. The Android OS-equipped device helps the stockman find where he needs to be in the warehouse and what to pick there. It updates the inventory in real-time as orders are taken from shelves for shipping.

The M100 is also applicable for telemedicine, remote assistance, utilities, manufacturing and other business operations. Lee Co., the largest mechanical contractor in Tennessee, has M100-equipped field technicians that send videos and data to the company’s service support library for sharing with other technicians to complex home service jobs on time and save on man-hours.

The M100’s built-in HD camera can take picture and video and save them in an expandable onboard memory or stream it live. It can link with another Android device via Bluetooth 4.0 and connect to the Internet via Wi-Fi. Integrated GPS, gyroscope and compass systems, lets apps sense the user’s location and the direction and angle of view. The smart glass is controlled by voice command, button press, and gesture.

Meanwhile, the M300 is powered by an Intel Atom processor and has a new design that enhances functionality and wearability.

Vuzix also ramped up production of its iWear Video Headphone, which it touts as the  the most advanced mobile entertainment display in the market to date. The iWear’s dual high-definition displays produce a field of view equivalent to a 125” home theater screen viewed from 10 feet away. With HDMI capability, it can be hooked up to a 3D Blu-ray player, tablet, console system, PC, and mobile phones.

It is also 30 times faster than any other gaming HMD with less than one millisecond video delay. Users can watch incredible 2D and 3D video and advanced interactive Virtual Reality and 3D titles. More than 120 games can be played on the headset, including Assassin’s Creed, Call of Duty, Half-Life 2, Halo and MS Flight Simulator.

As customers enjoy enhanced entertainment experience and business owners improve workflow efficiency with the iWear and M300, Vuzix founder, CEO and president Paul Travers looks beyond the technology horizon as far as the potential of the products is concerned. In fact, he envisions smart glasses as replacing the smartphone and PC because of its advantage as a hands-free device.

Vuzix has invested so much in developing, refining, producing and marketing its wearable gadgets. While cost figured more in its Q1 earnings, the company is banking on the competitiveness of its iWear Headphones and M300 Smart Glasses in meeting delivery targets this year and regaining improved cash flow.