Based on the essence and characteristics of smart grid， an all-round analysis is made about the electricity market development with the prospects of electricity market as the carrier of smart grid given. The viewpoint is presented that technological breakthrough of smart grid means another revolution for electricity market and research idea， which will profoundly influence the future development mode of electricity market， and promote the diversification of market players to go financial in trading varieties， change the power system operating mode and supply and demand relations in energy， promote gradually coordinated development of smart grid and electricity market， and realize integrated optimal allocation of energy and environment and other resources.