Up from $6m in 2008, according to ABI Research study.
Augmented Reality, which overlays information and tags on to camera phone images, is regarded as one of the most exciting new mobile technologies. Apps from companies like Layar have already been released for iPhone and Android.
The analyst believes ad revenue will power the sector to significant revenues by 2014.
Study author Joe Madden said: "Today`s customised, direct business-to-business AR supply chain will continue to see incremental growth in military, automotive, and entertainment applications.
"But those businesses will be overshadowed by themass-market dynamics of mobile handset application sales and advertising revenue streams."
He added that technology advances are still required for Augmented Reality applications to proliferate.
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"GPS location accuracy is not adequate currently for many applications, requiring additional techniques to refine location precision for shopping applications, or for game applications in which virtual objects must be placed precisely on the display near corresponding real objects."
