Annual global spending on smart grid technologies, including smart meter implementations, as well as upgrades to transmission and distribution infrastructure, is expected to reach $65 billion by 2017.

Installation of smart meters is just the tip of the iceberg as far as the smart grid is concerned.

"A number of major utilities throughout the world are either actively engaged in or planning the enormous task of connecting grid assets such as substations, capacitor banks, and transformers to their head-end systems for improved monitoring, control, and automation," says Craig Foster, senior analyst, home automation and M2M. "This involves the installation of a plethora of sensors, controls, and other grid optimization solutions such as synchrophasors and advanced reclosers."

As such, transmission and distribution investments are expected to account for the lion's share of smart grid investments up until 2017.