In a report released this week, market analyst Lux Research found that metering hardware and software combined with networking technologies would grow by as much as $2 billion by 2013 to $4.7 billion.

Calling the current U.S. power grid "wasteful, costly, inefficient [and] ill-equipped to address many pressing energy issues," the report's authors predicted that "smart grid technologies, like advanced metering infrastructure and demand response services, will enable the transformation of the current grid to a more reliable and intelligent power web."

Lux said power distribution is moving away from centralization to distributed power generation, storage and intelligence. Other experts said that trend is expected to be driven by countries like India where there is little or no electricity infrastructure and where renewable energy sources like solar are advancing quickly.

The study also found that supplies of raw materials for lithium-ion batteries used for transportation will not be constrained, although it predicted some pricing volatility.

Meanwhile, Lux said investment in energy storage technologies is shifting from batteries and fuel cells to "smart grid technologies." The market researcher found that investments in new grid technologies totaled $262 million from 2007 to mid-2008.

Lux said smart grid investments are being driven by the desire of venture capitalists to get a quicker return on their investments.