First, there was X10. There was appetite for something better. There were several candidate replacements, including:
* UPB - Universal Powerline Bus (powerline)
* Insteon (powerline + wireless)
* Z-Wave (wireless)
* Zigbee (wireless)
Of these, Zigbee seems to be in the best position these days.
Z-Wave is/was a closed system - you had to get compatibility testing/certification in order to sell products using the tech. It's fairly lightweight, reliable, and well respected by users.