According to the study, using a combination of these, home automation vendors can expect to build revenues for wireless home automation nodes from a historical $1.1 million in 2005 to more than $58 million in 2011.

“For many years, home automation technology was available to consumers only in niche markets,” says ABI Research senior analyst Sam Lucero. “At one end of the spectrum were technophile hobbyists; at the other were homeowners with custom home automation systems costing up to $100,000 or more. But home automation has largely been ignored by the vast majority of mainstream consumers.”

The three drivers for home automation market growth according to ABI Research include a move by big-box retailers to add a new “high touch” environment within their stores: a store-within-a-store concept in which knowledgeable staff can demonstrate home theater products and networks to customers.

“Customers who enjoy the advantages of networked entertainment are likely to see the benefits of automated control of lighting, climate and window coverings as well. High touch consumer electronics retailers are ideally positioned to capitalize on this market dynamic,” says Lucero.

A second driver is demonstrated by two US companies, iControl and Xanboo, says ABI. They offer customers the ability—through service providers such as ISPs, cable companies and mobile operators—to monitor conditions in their homes remotely. Although home monitoring services are at a very early stage of deployment to mainstream consumers, ABI Research believes the service provider channel shows much promise.

Finally, says Lucero “There is growing interest among builders in offering home automation technology as a standard option. Builders are well-positioned to demonstrate new home automation technologies in model homes, and to educate potential buyers about their benefits. A new class of technology vendors is focusing on the use of standard technologies such as ZigBee and Z-Wave to create packaged solutions. These vendors include Control4, Cortexa Technology, Exceptional Innovation, and Nobu, and all are looking closely at new home builders as a key channel.”