According to BCC Research, the U.S. market for smart grid technologies, worth $15.3 billion in 2008, is expected to increase to $37.4 billion in 2014, for a compound annual growth rate (CAGR) of 16.6 percent.

Distributed energy generation and storage technologies generated $10.1 billion in 2008 and an estimated $11.3 billion in 2009. This segment should reach $20.1 billion in 2014, for a CAGR of 12.2 percent.

Sensing, measurement and control technologies were worth almost $4 billion in 2008 and reached an estimated $4.4 billion in 2009. This should increase at a CAGR of 26 percent to reach $14 billion in 2014.

The century-old U.S. electrical grid consists of more than 9,200 electric generating units with more than 1,000,000 MW of generating capacity connected to more than 300,000 miles of transmission lines.

Smart grid describes a set of related technologies, rather than specific technology with a generally agreed on specification. These technologies fall into diverse areas.

-       Two-way integrated communications: allow for real-time control, information and data exchange to optimize system reliability, asset utilization, and security.
-       Sensing and measurement: evaluate congestion and grid stability, congestion and grid stability, monitor equipment health, detect energy theft, and support control strategies support.
-       Advanced components: flexible alternating current transmission system devices, high voltage direct current, first and second generation superconducting wire, high temperature superconducting cable, distributed energy generation and storage devices, composite conductors, and “intelligent” appliances.
-       Advanced control that enables rapid diagnosis of and precise solutions to specific grid disruptions or outages.
-       Improved interfaces and decision support that reduce complexity so that operators and managers have tools to effectively and efficiently operate a grid with increasing numbers of variables.