Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1302

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1302
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 objectives. In the United States, this is evidenced by notable policy initiatives and
the growing share of space activities conducted by commercial contractors.

Overall, the space economy
is poised for significant growth, with both established and emerging players contributing to an increasingly dynamic and competitive
landscape.

Launch Market

Historically, access to
space was constrained by high capital requirements, with launch costs serving as the primary bottleneck for orbital activities. Launch
availability—adequate for traditional, large-scale missions occurring only a few times a year—was often insufficient and
limiting for operators of small satellites. While emerging launch providers have aimed to increase launch frequency and flexibility for
smallsat missions, financial barriers have continued to pose challenges for new entrants.

Today, the landscape is
shifting rapidly. After years of limited launch opportunities, small satellites now benefit from a wider range of launch solutions, including
dedicated small launch vehicles, rideshare programs, brokers, and deployment systems. According to Euroconsult, the small satellite launch
market—valued at $7.6 billion—is projected to grow by over 279% to reach $28.4 billion. However, a significant portion of
that market remains dominated by national programs and vertically integrated providers like SpaceX. Previously overlooked due to fragmented
demand and lower perceived profitability, the smallsat sector is now receiving increased attention, as launch supply adapts to meet rising
demand with greater responsiveness and innovation.

Small Satellite Market

Since 2018, the commercial
space market has experienced a significant paradigm shift, leading to an increased demand for small satellites (smallsats). According
to Euroconsult, smallsats have become more compact over the past few years while enhancing their performance. Technological advancements
have expanded their mission capabilities, making them more resilient, effective, and cost-effective. This miniaturization trend allows
customers to choose between lighter satellites with unchanged capabilities or larger, more powerful satellites offering greater functionalities.
Key technical enablers include:

●Extended
                                            use of electric propulsion

●Miniaturization
                                            of attitude sensors

●Improvements
                                            in solar cell and battery efficiency

●Commercial
                                            off-the-shelf (COTS) solutions for bus electronics

●3D
                                            printing technologies

The demand for large geosynchronous
satellites has declined as companies focus on deploying constellations of smaller, cost-effective broadband satellites in low and medium
Earth orbits. Advancements in space-related sectors, particularly computational technologies and data analytics, have facilitated the
mini