Why Greater Phoenix is a Top Aerospace and Defense Market

Published: 05/07/2026

Greater Phoenix has grown into one of the nation’s leading aerospace and defense hubs.

Anchored by legacy industry leaders and fueled by next-generation innovation, the region is shaping the future of aerospace through advanced manufacturing, military partnerships, autonomous aviation and space exploration.

Here’s why Greater Phoenix continues to stand out as a top aerospace and defense market.

Arizona’s aerospace legacy started over 80 years ago, forged during WWII when clear skies and open land made it the nation’s premier pilot training ground. Decades later, that foundation has evolved into a thriving aerospace and defense ecosystem.

  • Military operations in Arizona employ over 50,000 full- and part-time workers and generate $15.5 billion in total economic output.
  • In July 2025, Arizona launched the Office of Defense Innovation in partnership with the Southwest Mission Acceleration Center to boost Department of Defense missions in the state.
  • The Fuse Accelerator, partnering with DIU OnRamp, supports companies innovating in applied AI, biomanufacturing and quantum technologies for both defense and private sector use.

Bottom line: Greater Phoenix’s deep roots in aerospace and defense have created a foundation that is still being built on today.

The biggest names in the industry are already here. Greater Phoenix’s aerospace and defense footprint runs deep, anchored by industry giants that have called it home for decades.

  • Honeywell Aerospace, in the process of spinning off from Honeywell International, is headquartered in Phoenix and employs more than 7,000 people in the region.
  • Boeing manufactures its Apache helicopter in Mesa, and in 2022 added an advanced composite fabrication center to build next-generation combat aircraft.
  • General Dynamics operates out of Scottsdale, focused on space, communications and intelligence systems.
  • Hadrian recently opened a new factory in Mesa, pioneering a factory-as-a-service model using AI and robotics to slash costs and increase efficiency in aerospace and defense manufacturing.

Zoom out: Legacy aerospace and defense companies have continued to deepen their investment in Greater Phoenix and build their mission-critical operations here.

Greater Phoenix has the connectivity aerospace and defense companies depend on. The region’s robust aviation infrastructure positions it as one of the most important connectors to major markets.

  • Phoenix Sky Harbor International Airport is one of the nation’s largest airports, serving over 52 million passengers through more than 1,000 daily flights, with recent international expansions into France and Taiwan.
  • Mesa Gateway Airport handles 2 million passengers with flights to more than 45 destinations.
  • 13 additional regional airports support general aviation, corporate, military and cargo operations across the region.

The impact: Greater Phoenix’s network of airports gives aerospace and defense companies the ability to source globally, move product and access talent.

The next era of aviation is taking shape in Greater Phoenix. While other regions are still mapping out what advanced air mobility looks like, companies here are already putting it to the test.

  • Honeywell’s Advanced Air Mobility Lab completed its first autonomous flight of a Leonardo AW139 helicopter and has partnered with Vertical Aerospace to develop a unified cockpit platform with displays, controls and connectivity built for eVTOLs.
  • In 2025, the Arizona Legislature established a first-of-its-kind statewide framework to integrate eVTOL aircraft into Arizona’s transportation systems.

Looking ahead: As the eVTOL market matures, Greater Phoenix will have something other markets won’t: years of real-world testing and a policy framework already in place.

Greater Phoenix’s aerospace sector extends beyond the atmosphere. The region has intentionally built a space economy ecosystem with industry, academia and government all moving in the same direction.

  • HALO, the Habitation and Logistics Outpost that will serve as humanity’s first permanent home away from Earth as part of NASA’s Artemis missions, is being integrated and tested at Northrop Grumman’s facility in Gilbert.
  • Arizona reestablished the Arizona Space Commission to drive space exploration, aerospace innovation and STEM workforce development.
  • The Arizona Technology Council’s Aerospace, Aviation, Space and Defense Committee unites industry, academia and government to accelerate technology and policy.
  • ASU’s NewSpace Initiative creates pathways for collaboration between the university, government and commercial space companies.

What it means: With industry connections, policy alignment and academic infrastructure in place, Greater Phoenix is already one of the defining hubs of the space economy.

What began with wartime training has evolved into a globally connected ecosystem driving the future of aviation, defense and space exploration. With legacy industry leaders, next-generation innovators, expanding infrastructure and forward-looking policy all converging in one region, Greater Phoenix is helping shape the future of aerospace and defense.

Want to dive deeper?

Our free 29-page report breaks down the full depth of Greater Phoenix’s aerospace & defense ecosystem.

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Photo Credit: Luke Airforce Base, Jakob Hambright