The global custom-designed and installed home automation system market is seeing a "fundamental shift" according to ABI Research-- the majority of installations is taking place as retrofits and renovations, rather than in new homes.

The analyst says new builds now represent around 40% of global mid- to high-end automation installations, down from approximately 90% before the recession.

The boost in retrofits comes due to 2 main factors-- the development of more reliable wireless technologies (primarily ZigBee and Z-Wave) and the collapse of residential construction in a number of key markets.

Custom installation vendors will also benefit from the entry of service providers (like home security companies) in the automation space. Service providers bring "vast marketing budgets," and with that greater exposure to the technology.

ABI predicts WW home automation service subscriptions (provided from home security companies) will increase from around 513000 in 2010 to over 10M by 2016.

Go ABI Research: 60% of Mid- to High-End Automation Installations are Retrofits