FBR Highlights Wearables' Growth Opportunity

In a report published Friday, FBR & Co. analyst Daniel Ives argued that wearables represent a major growth opportunity for technology companies in 2015 and beyond.

According to Ives, Apple Inc.'s AAPL March 9 event in which the company is expected to detail its long-awaited Apple Watch product will set the stage for greater adoption of wearables and open up a new source of growth for other large technology companies.

Ives added that the wearable technology is in its "very early days" and there is a "major paradigm shift" poised to occur as "massive resources" are being allocated toward development of new products and features.

"In a nutshell, we believe the Apple press event will further spotlight the shift to this whole new category of consumer/enterprise technology and thus could be a seminal event that kicks off this "potentially ground breaking" growth opportunity around wearables for numerous technology vendors over the next few years," Ives argued in his note. "While the initial focus is on Monday's press event, we believe this represents the tip of the iceberg of where this wearables technology can ultimately lead (e.g. augmented reality, scientific applications/research) for consumers and enterprises worldwide going forward."

Ives also noted that while "the jury is still out" around the Apple Watch, it will prove to be a "major game changer," as firms such as Microsoft Corporation MSFT scramble to ensure its Windows 10 will also work across a range of wearables, with its universal app platform facilitating the development of applications that can be deployed across multiple devices and enable the company to shift in to next-generation area of technology.

Bottom line, Ives speculated that Apple is likely positioned to take the lead in the wearable devices category but a "massive land grab" opportunity exists for other firms as well.