Abstract: Industrial agglomeration plays a significant role in promoting regional economic development and regional competitiveness, and gradually becomes the main mode of regional economic development and industrial upgrading. Spatial agglomeration and correlation should not only consider the distribution density of an industrial land type, but also consider the location, size and shape of each patch. Neighborhood analysis can be used to analyze the correlation between industrial land types through the relationship between the area of specific patches and adjacent patches. This study applied the fishnet to divide the visual interpretation data into 20877 patches and calculated the spatial agglomeration degree and spatial correlation degree among 8 different industries in urban and suburban areas of Jiayuguan by establishing a single index evaluation system for industrial spatial agglomeration and combining the neighborhood abundance factor with the class interaction factor to establish the evaluation method of Industrial Spatial Association. And then the spatial agglomeration level and spatial correlation degree among industries were analyzed. The results showed that: 1) the first industry mainly distributed in a small area in the north, and the land spatial agglomeration was low. However, the second industrial land spatial agglomeration degree was high, and the industrial development mainly gathered in the northern or eastern region. As for the tertiary industry, its land spatial aggregation degree was relatively high, and has more dispersed distribution compared to the second industry. 2) Spatial agglomeration degree of manufacturing land was highest, and the largest spatial aggregation of the patches was 69.5%. There were two different dense zones between 8%-20% and 46%-64%, and the industrial cluster effect has initially formed in the eastern part. The spatial agglomeration of patches in transportation, warehousing, post and information industry has formed a particularly dense distribution belt between 15%-23%. Although the transportation industry land area was larger, its spatial distribution was dispersed. 3) The areas of agriculture, forestry, animal husbandry and fishery industry were relative small and had a low correlation with other industrial land, as the area of first industry was close to the urban area and the suburb. The second industrial land has shown a certain rejection effect on the tertiary industrial land and the residential land. 4) The interaction factor between the mining, smelting, processing and manufacturing and the production and supply and management of public resources was more than 1. The relationship between transportation, warehousing, post and information industry, commercial service industry and public management and public service and residential land was also high, and three of them were related to each other, which showed that the aggregation and local flow of the population promote the development of the tertiary industry. The spatial agglomeration degree and spatial correlation degree can accurately present industrial agglomeration level and express inter industry relationship. This study further illustrates that the successful transformation of Jiayuguan's industry can not be separated from the strong industrial base of its second industrial agglomeration. And the agglomeration and diversification of manufacturing industry is also the dynamic guarantee for the rapid development of the steel market under the weakness of the steel market. The employment opportunities provided by the manufacturing industry and other second products also have an effective role in promoting the development and agglomeration of the three industries.