The elimination of market segmentation is the primary goal of regional integration in the Yangtze River Delta region, and it also meets the requirement of promoting high-quality development of regional economy. Therefore, it is necessary to depict and analyze the temporal and spatial evolution of market segmentation in the Yangtze River Delta region in recent years and explore its spatial externalities. Based on market segmentation of the circulation of commodities, labor migration "two sides" perspective, this article integrated using the method of relative price method, the spatial econometric model, to 35 cities in Yangtze river delta, 2008-2017 panel data analysis, to explore market segmentation in Yangtze river delta geography process, pattern, as well as its spatial spillover effects on regional economic growth. The research shows that:① in the past ten years, the segmentation of commodity and labor market in the Yangtze River Delta region presents a downward trend in fluctuation, with a decrease of 63% and 48% respectively; ② Spatial differentiation of market segmentation varies from province (municipality) to province (municipality) and also city to city. At the provincial level, the segmentation of commodity and labor market in all provinces(municipalities) has a downward trend. The annual trend of commodity market segmentation between provinces(municipalities) is consistent, while the labor market segmentation shows great difference after 2012. At the municipal level, the decrease of commodity market segmentation in core cities is 65.8%, which is larger than that in non-core cities, and the decrease of labor market segmentation is only 37.2%, which is significantly smaller than that in non-core cities. As a result, the rank of the commodity market segmentation in the core cities moves down, while the rank of the labor market segmentation moves up; ③ The results of the spatial econometric model show that labor market segmentation has a significant negative space spillover effect on regional economic growth, which is mainly reflected by direct effect, while the indirect effect coefficient is negative but not significant outside the region. Although the influence coefficient of commodity segmentation on regional economic growth is not statistically significant, its negative coefficient still reflects its spatial inhibitory effect on economic growth to some extent.