Abstract:This paper investigates the growth factors of the China’s producer service industry from the perspective of demand by using structural decomposition analysis (SDA) method. The results show that the contribution rate of external system is much bigger than that of China’s producer service industry. The development level of China’s producer service industry is low and its internal structure is irrational, the proportion of traditional producer service industry is higher, the proportion of the emerging producer service industry is small; however, the backward development of emerging producer service industry not only directly affects the upgrading of holistic development level of producer service industry but also hampers the development of traditional producer service industry and affects the structural adjustment and upgrading of non-producer service industry of the primary, secondary and tertiary industry and then limits the promoting effect of producer service industry development of external system. Only promoting the development of emerging producer service industry and realizing the reform and upgrading of traditional producer service, can the long-term interactive promotion effect between producer service industry and industry be realized so as to boost the development of producer service industry.