Under unbalanced background of regional economic development, how to speed up industrial upgrading has become an urgent issue faced by central and western China in their economic development, therefore, the opportunity identification of rational industrial upgrading and path selection become an important demand. This study builds a framework of identifying opportunities and path of industrial upgrading based on product space theory,based on that, designs judging method for industrial upgrading to analyze the potential advantage and production capacity endowment, studies the typical industrial upgrading situation of urban agglomerations in central and western China, identifies future industrial upgrading opportunity and explores potential basic path for industrial upgrading. The results indicate that the typical urban agglomerations such as Wuhan urban agglomeration, Changzhutan urban agglomeration, Chengyu urban agglomeration and Zhongyuan urban agglomeration in central and western China stay at marginal product space position, which become the bottle affecting industrial upgrading and which largely restrict industrial upgrading on the basis of current production capacity endowment, thus, the potential opportunities with agile upgrading capacity are limited. Based on this, the basic path for boosting industrial upgrading of the urban agglomerations in central and western China needs to choose focal development points of the industries with narrowing product space distance and speeding up explicit comparative advantage spread. The conclusion of this paper indicates that the spatial pattern of initial products is an important basis affecting regional industrial upgrading, which directly determine the quantity and type of the industries with potential advantage and the potential difficulties in the process of upgrading, and which further guide the basic path for realizing rapid industrial upgrading.