Wow!
We have seen the same with our son. He is now 3 1/2 and is beginning to use functional language. He was the same way in the beginning with the pointing and grunting and if we mentioned something he would know what we were talking about, but would not say anything. We are still working on expressive language.
He now tells us what he wants by using one or two words. Example: "want juice", "sucker", "open", etc. Can you believe it, we couldn't be happier? Isn't it funny what we get excited about?
We tried ABA for a year and it did not work out for us, but my son has speech and OT twice a week. It will come for your child, just have him say what he wants each time by manding (you say the item and he repeats you and then gives you an independant response). Stay consistent.