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With the rapid and unbalanced development of industry, a large amount of cultivated land is converted into industrial land with lower efficiency. The existing research is extensively concerned with industrial land use and industrial development in isolation, but little attention has been paid to the relationship between them. To help address this gap, the paper creates a new efficiency measure method for industrial land use combining Subvector Data Envelope Analysis (DEA) with spatial analysis approach. The proposed model has been verified by using the industrial land use data of 30 Chinese provinces from 2001 to 2013. The spatial autocorrelation relationship between industrial development and industrial land use efficiency is explored. Furthermore, this paper examines the effects of industrial development on industrial land use efficiency by spatial panel data model. The results indicate that the industrial land use efficiency and the industrial development level in the provinces of eastern region are higher than those of the western region. The spatial distribution of industrial land use efficiency shows remarkable positive spatial autocorrelation. However, the level of industrial development has obvious negative spatial autocorrelation since 2009. The improvement of industrial development has a significant positive impact on the industrial land use efficiency.