In order to study the consumption upgrade affects the industry"s total factor productivity and the spatially related characteristics, this paper uses the semi-parametric OP method to measure the industry"s total factor productivity based on the provincial panel data of China from 1997 to 2017, use spatial weight matrix to establishes a Spatial Dubin Model. We also measures the direct and indirect effects of the impact of consumption upgrade. The results show that there is a significant spatial correlation effect between consumption upgrade and industrial total factor productivity, and interregional consumption upgrade will promote the increase of industrial total factor productivity. Consumption upgrade has a significant positive space spillover effect, and the overall effect of promoting the efficiency of the service industry is greater than the effect on industry. Further exploring the differences in spatial effects, it is found that in terms of time changes, the promotion of consumption upgrade on industrial efficiency is significantly enhanced, and the impact on the service industry gradually weakens with the development of the service industry; in terms of geographical location, the central and western regions" direct effect of efficiency improvement is greater than that of the eastern region, while the indirect effect on the service industry is gradually decreasing from east to west. After replacing the spatial weight matrix, the above conclusions are still robust.