Using the downhole annular flow measurement system to get real-time information of downhole annular flow is the core and foundation of downhole microflux control drilling technology. The research work of electromagnetic flowmeter in recent years creates a challenge to the design of downhole annular flow measurement. This paper proposes a design and optimization of annular flow electromagnetic measurement system for drilling engineering based on the finite element method. Firstly, the annular flow measuring and optimization principle are described. Secondly, a simulation model of an annular flow electromagnetic measurement system with two pairs of coil is built based on the fundamental equation of electromagnetic flowmeter by COMSOL. Thirdly, simulations of the structure of excitation system of the measurement system are carried out, and simulations of the size of the electrode's radius are also carried out based on the optimized structure, and then all the simulation results are analyzed to evaluate the optimization effect based on the evaluation indexes. The simulation results show that optimized shapes of the excitation system and electrode size can yield a better performance in the annular flow measurement.