XTR3D has been developing gesture recognition software for TV products that works similarly to Microsoft's Xbox Kinect, by reading your movements and executing appropriate commands without the need to physically press any buttons.
The firm, based in Tel Aviv, has just received $8m (£5m) in investment - including cash from US electronics giant Texas Instruments - to further develop this touch-less technology, reports BBC News.
The company said that it believes full motion control smartphones running its software could be released as early as next year.
XTR3D's technology is said to differ from Kinect as it uses ordinary 2D cameras, such as a ones already available on smartphones, to extract the same 3D image.
The firm's spokesman told the corporation that the technology is cheaper and uses less power, while still offering the same performance, such as working in broad daylight.
It can also be installed into any consumer electronics device, such as retro-fitting a laptop to play Kinect games touchlessly from up to 5m away.
"Our target is to penetrate the market, so it will be something for everyone to try out," said Dor Givon, XTR3D's founder and chief technical officer.
"New devices will have the interface embedded in them, with older ones you will be able to download the software from the app store."
Voice control is already available in smartphones, including Apple's recently launched Siri service in the iPhone 4S, but it is thought that motion control and 'no-look' gesture recognition could be the next big growth area.
There has been speculation that next year will be the moment when mobile devices move beyond touchscreen technology and into the realm of touch-free, motion control recognition, potentially backed up by 3D displays.
We already employ gesture recognition for certain everyday uses, such as hovering your hand near a tap to activate the flow of water in some bathrooms.
But Microsoft has big plans for expanding its Kinect technology beyond gaming, including partnerships with around 200 businesses, including car maker Toyota and digital advertising firm Razorfish.
Speaking to BBC News, Microsoft researcher Shahram Izadi said: "The Kinect can sense your entire body for interaction with the device, and we're only scratching the surface of what can be done because beyond computing there's a lot of scenarios where this kind of natural user interaction could be really powerful, a real paradigm shift."
In a recent 'future gazing' video, Microsoft showcased holographic screens that would use touchless gesture recognition to enable the user to perform a range of actions in three dimensions.
Samsung has also showed off similar technology for tablets and smartphones using its latest 'bendable' touchscreen technology, such as augmented reality for viewing restaurant menus.
Apple recently filed patent applications that involve users touchlessly "throwing" content from one device to another, leading to speculation that the firm is planning to launch a connected TV product at some point next year, integrated with its iPhone and iPad.
Meanwhile, mobile chip maker Qualcomm has acquired Canadian firm GestureTek, which develops motion-control technology for tablets, smartphones and TV products.
Qualcomm's director of technology Francis MacDougall said that the technology uses ultrasound sensors to track movement via the microphone, rather than the optical camera.
"One issue the Kinect has is an inability to track close to a device. The default design can track no closer than 50cm - great for TVs but not so good for tablets and smartphones," said MacDougall.
"So Qualcomm has placed multiple audio sensors - microphones - into their handset designs to isolate the voice location in 3D space while filtering out everything else. This technique is extremely low power and can track the hand within one to 15cm of the phone."