The analysis of the relationship between the smart grid and the electricity market is a difficult and complicated issue， which is related with lots of aspects and involves lots of unanticipated factors. The preliminary exploration is made. Based on the identification of interaction relationship between the smart grid and the electricity market， the impact of the smart grid on the electricity market is analyzed emphatically as follows. Firstly， the basic function of the smart grid in supporting the market development is analyzed; Secondly， the huge driving forces on the deregulation of power industry by the smart gird are studied， including the change of power industry foundation， the deregulation forces， the reinforcement of ordinary commodity property of electricity and so on; In the end， the perspective traits of the electricity market led by the smart grid are systematically concluded. In addition， the potential significant influence on the market design by the smart grid as well as renewable energy and the corresponding tentative solving ways are intensively analyzed.