There’s a fascinating new trend in the mobile application space: Augmented Reality.

The technology, which superimposes graphics and information on live camera feeds, is not new, but the newest generation of smartphones are about to make it mainstream.

So what is Augmented Reality and what’s the big deal? AR is a graphics-oriented technology that blends sounds, haptics, and even smell to the natural world. So for example picture yourself using your cell phone to view the real world through its camera lens and while doing so, being able to interact with it. How? You could get twitts of the people all around you or the playlists and music streams of your neighborhood or see who built that statue that you’re staring at…

Now stop dreaming, you’re not a sci-fi nerd anymore! This is happening now…And Augmented Reality App space can already count on big investors.

USC and Nokia have partner to work on the next frontier of AR. “While there is no limit on future applications for augmented reality experiences on mobile devices, the enabling technologies behind complex augmented reality are still in the research stages,” said USC professor Ulrich Neumann of the Computer Science Department in the Viterbi School of Engineering. 

Apple too has patented its own AR technology for mobiles. And a new breed of start-ups is betting on the future of AR for mobile devices.

Dutch start-up SPRXmobile, is one of them. Its cell phone browser Layar, is an app for Android phones that provides information about points of interest as you’re seeing them: real estate listings, job posts and reviews.

Unfortunately you can not get this app on your iPhones or in the US. Apple resistance to making its live video feed API public, has hindered the roll-out of Layar and many similar AR apps on the mainstream iPhone platform. A few companies have  protested and signed a petition.

The revolution that AR can usher has not been stopped though, and sooner or later we will start interacting in a totally different way: with content, with the environment that surrounds us, with brands. As an artist you could offer apps to interact during your live gigs (sell your music or send a personal playlist or card to your fans with links to videos or to your site).As a end-user you could point to a movie poster and download reviews, find the closest theater, buy a ticket, maybe get one for free with a 3D coupon on your phone, and that is what Nokia’s Point and Find will soon allow you to do. As a retailer or brand you could offer information and promotions when they are most relevant (in-store and on-pack like Lego’s digital box); learning could become pervasive instead of compartmentalized into the books experience…

Watch these videos for some amazing inspiration and start getting ready for a new era….

Nearest Tube

The first version of the app, which has already been submitted to Apple, will cost $1.79 per city and will support two U.S. cities to start — New York and San Francisco. Apps for London, Tokyo and Berlin have also been submitted.

TwittARound

You hold the phone in front of you and then get a view of tweets based on their location data — as long as the user has decided to share that information. TwittARound isn’t available on the App Store yet

Virtual Graffiti

Amazing 3-D mapping application today that captures the real world and then lets artists draw graffiti all over it. Check VentureBeat coverage for more details.

TAT Augmented ID

This utilizes facial recognition software (supplied by Polar Rose) to visualize the digital identities of those around you.

Zagat

The latest application from NRU and Zagat for Android phones that finds restaurants and bars near you.

Wikitude

Austrian company Mobilizy launched Wikitude, an augmented reality browser based on the Android platform using information from Wikipedia, user-generated recommendations from Qype and the photo-sharing community Panoramio. It is a travel guide that can annotate landmarks and mountains.

At Wimbledon this year, Mobilizy worked with I.B.M. to develop an application for the T-Mobile G1 phone that displayed real-time information about matches in progress, as well as dining and transportation options for fans.

Recommended Readings

Game Alfresco Blog

Kicking Reality Up A Notch – NYT

Startups looking to make money by enhancing reality- VentureBeat

The Experience Revolution: How Augmented Reality is about to change how you live, advertise and brand- Simon Mainwaring

Augmented Reality On iphone Delayed, But Hardly Prevented – ThinkArtificially

AR Consortium